Section one: Contracting authority/entity
one.1) Name and addresses
DERBY CITY COUNCIL
Corporation Street
Derby
DE1 2FS
Telephone
+44 1332640768
Country
United Kingdom
Region code
UKF11 - Derby
Justification for not providing organisation identifier
Not on any register
Internet address(es)
Main address
one.4) Type of the contracting authority
Regional or local authority
one.5) Main activity
General public services
Section two: Object
two.1) Scope of the procurement
two.1.1) Title
The Supply of Needle Exchange Goods and Naloxone
Reference number
TD2067
two.1.2) Main CPV code
- 33000000 - Medical equipments, pharmaceuticals and personal care products
two.1.3) Type of contract
Supplies
two.1.4) Short description
The Council intends to enter into an agreement for the Supply of Needle Exchange Goods and Naloxone from 01/04/2024 to community pharmacies delivering Needle Exchange Services on behalf of Derby City Council for the period of 3 years with option to extend for 2 years subject to performance and budgetary approval
two.1.6) Information about lots
This contract is divided into lots: No
two.1.7) Total value of the procurement (excluding VAT)
Value excluding VAT: £550,000
two.2) Description
two.2.3) Place of performance
NUTS codes
- UKF - East Midlands (England)
two.2.4) Description of the procurement
The supply of needle and syringe goods:
• Needles
• Syringes
• other equipment used to prepare and take drugs e.g. filters and mixing containers
• Naloxone (Prenoxad and Nyxoid)
• Sharps containers for client use
As part of a needle and syringe programme (NSPs) this supply contributes to a reduction in the transmission of blood-borne viruses and other infections caused by sharing injecting equipment, such as HIV, hepatitis B and C and forms part of the wider integrated drug and alcohol treatment and recovery system which aims to discharge the following for Derby City Council:
• Statutory service delivery in line with the conditions of Public Health Grant allocation in respect of substance misuse (section 31(4) of the Local Government Act 2003)
• The duty to improve public health and address inequalities (steps considered appropriate for improving the health of the people in its area) (Health & Social Care Act 2012, s.12)
• Deliver drug and alcohol treatment as a statutory requirement under the Crime and Disorder Act 1998 (un-repealed) in accordance with the Council's Constitution.
• Deliver a world-class treatment and recovery system as detailed in the national drug strategy From Harm to Hope: A 10-year drugs plan to cut crime and save lives (H.M. Government 2022) and the Dame Carol Black Independent Review of Drugs part two: prevention, treatment, and recovery.
• Delivery against Joined Up Care Derbyshire and the Health and Wellbeing Boards objectives in respect of reducing alcohol related harm.
In addition, the service will contribute to the substance misuse partnership priorities of:
• Reducing drug and alcohol related deaths
• Increasing the number of people recovering from addiction.
The service will also aim to:
• Reduce the level of harm caused to individuals, families and the wider community as a result of drug misuse.
• Improve the physical and mental health of complex substance misusing clients and work to address inequalities for priority vulnerable groups including women, underserved ethnic groups and those experiencing homelessness.
• Address the ambitions of the Supplemental Substance Misuse Grant and the Rough Sleeper Drug and Alcohol Treatment Grant 22-25 and any subsequent funding objectives.
two.2.11) Information about options
Options: Yes
Description of options
Further 2 x 12 month extensions to a maximum contract period of 5 years
two.2.14) Additional information
The Council will observe a 10 day standstill period from 26/09/2023 to 05/10/2023
Section four. Procedure
four.1) Description
four.1.1) Type of procedure
Negotiated without a prior call for competition
- The works, supplies or services can be provided only by a particular economic operator for the following reason:
- absence of competition for technical reasons
- Extreme urgency brought about by events unforeseeable for the contracting authority
Explanation:
Negotiated without a prior call for competition
• The works, supplies or services can be provided only by a particular economic operator for the following reason:
o Cost of change is prohibitive for new providers
• Extreme urgency brought about by events unforeseeable for the contracting authority
• New works/services, constituting a repetition of existing works/services
Explanation:
We are awarding the contract without prior publication under paragraphs 2(b)(ii), 2(c) and 9 of Article 32 of Directive2014/24/EU.
The technical reason (2(b)(ii)) is that there will be significant cost and inconvenience to the Authority and economic operators associated with tendering for the following reasons:
• The service requires significant logistics, supplies already in the community at contract handover will need to be replaced and this will occur again at the end of the contract period, causing inconvenience to service users and additional cost for the Council and economic operators. Stock would need to be collected at the end of the current contract and destroyed at cost, new stock delivered up front of contract start
• Cost of retraining pharmacy staff due to changes in stock ordering systems and needle exchange pack changes
• Cost of monitoring claims with changes in packs and ordering system
• Familiarising service users with new packs - potential increase in harm with reduced uptake of the needle and syringe programme
• Pharmacy disruption - pharmacies are going through a significant period of change, this would add to their workload and damage provider, pharmacist, service user and commissioner relationships
• Uncertainty regarding the supply of naloxone by the same provider - economies of scale
Cost of change is therefore prohibitive for new providers.
The urgency(2(c)) has been brought about as a result of:
• Delays in establishing the Provider Selection Regime (PSR) after the establishment of Integrated Care Boards - all stakeholders expected PSR to have been established mid 2022 therefore not expecting a tender
• Procurement do not have capacity to support a procurement process
• Public Health do not have capacity to support full commissioning and procurement process
The Council need to ensure provision is maintained, a gap in service provision would break the law - these are statutory requirements.
In accordance with paragraph 9 of Article 32 of Directive 2014/24/EU the new contract will provide identical services to those being delivered by the economic operator under their current contract, which was procured in accordance with Article 26 of Directive 2014/24/EU.
The service provider forms part of the local integrated care system and thereby being part of the local health economy that needs stability after the recent turmoil of the pandemic, changes to legislation and the economic crisis. Therefore, direct award also prevents further instability in the market.
four.1.8) Information about the Government Procurement Agreement (GPA)
The procurement is covered by the Government Procurement Agreement: Yes
Section five. Award of contract/concession
A contract/lot is awarded: Yes
five.2) Award of contract/concession
five.2.1) Date of conclusion of the contract
25 September 2023
five.2.2) Information about tenders
The contract has been awarded to a group of economic operators: No
five.2.3) Name and address of the contractor/concessionaire
Frontier NX Limited
Blackwood
NP12 2YN
Country
United Kingdom
NUTS code
- UKF11 - Derby
Companies House
10403680
The contractor/concessionaire is an SME
No
five.2.4) Information on value of contract/lot/concession (excluding VAT)
Initial estimated total value of the contract/lot/concession: £550,000
Total value of the contract/lot/concession: £550,000
Section six. Complementary information
six.3) Additional information
Negotiated without a prior call for competition
• The works, supplies or services can be provided only by a particular economic operator for the following reason:
o Cost of change is prohibitive for new providers
• Extreme urgency brought about by events unforeseeable for the contracting authority
• New works/services, constituting a repetition of existing works/services
Explanation:
We are awarding the contract without prior publication under paragraphs 2(b)(ii), 2(c) and 9 of Article 32 of Directive2014/24/EU.
The technical reason (2(b)(ii)) is that there will be significant cost and inconvenience to the Authority and economic operators associated with tendering for the following reasons:
• The service requires significant logistics, supplies already in the community at contract handover will need to be replaced and this will occur again at the end of the contract period, causing inconvenience to service users and additional cost for the Council and economic operators. Stock would need to be collected at the end of the current contract and destroyed at cost, new stock delivered up front of contract start
• Cost of retraining pharmacy staff due to changes in stock ordering systems and needle exchange pack changes
• Cost of monitoring claims with changes in packs and ordering system
• Familiarising service users with new packs - potential increase in harm with reduced uptake of the needle and syringe programme
• Pharmacy disruption - pharmacies are going through a significant period of change, this would add to their workload and damage provider, pharmacist, service user and commissioner relationships
• Uncertainty regarding the supply of naloxone by the same provider - economies of scale
Cost of change is therefore prohibitive for new providers.
The urgency(2(c)) has been brought about as a result of:
• Delays in establishing the Provider Selection Regime (PSR) after the establishment of Integrated Care Boards - all stakeholders expected PSR to have been established mid 2022 therefore not expecting a tender
• Procurement do not have capacity to support a procurement process
• Public Health do not have capacity to support full commissioning and procurement process
The Council need to ensure provision is maintained, a gap in service provision would break the law - these are statutory requirements.
In accordance with paragraph 9 of Article 32 of Directive 2014/24/EU the new contract will provide identical services to those being delivered by the economic operator under their current contract, which was procured in accordance with Article 26 of Directive 2014/24/EU.
The service provider forms part of the local integrated care system and thereby being part of the local health economy that needs stability after the recent turmoil of the pandemic, changes to legislation and the economic crisis. Therefore, direct award also prevents further instability in the market.
The Council will observe a 10 day standstill period from the publication of this notice.
six.4) Procedures for review
six.4.1) Review body
Derby City Council
Derby
DE1 2FS
Country
United Kingdom
six.4.2) Body responsible for mediation procedures
Derby City Council
Derby
DE1 2FS
Country
United Kingdom
six.4.4) Service from which information about the review procedure may be obtained
Derby City Council
Derby
DE1 2FS
Country
United Kingdom