Section one: Contracting authority/entity
one.1) Name and addresses
Westminster City Council
64 Victoria Street
London
SW1E 6QP
Country
United Kingdom
Region code
UKI32 - Westminster
Internet address(es)
Main address
Section two: Object
two.1) Scope of the procurement
two.1.1) Title
Emergency Hotel Provision WCC Housing Needs
Reference number
Con_30051
two.1.2) Main CPV code
- 55100000 - Hotel services
two.1.3) Type of contract
Services
two.2) Description
two.2.3) Place of performance
NUTS codes
- UKI32 - Westminster
Main site or place of performance
Westminster
two.2.4) Description of the procurement at the time of conclusion of the contract:
Emergency accommodation provision to be utilised by outreach teams for rough sleepers.
two.2.7) Duration of the contract, framework agreement, dynamic purchasing system or concession
Start date
1 April 2022
End date
31 March 2025
In the case of framework agreements, provide justification for any duration exceeding 4 years
N/A
two.2.13) Information about European Union Funds
The procurement is related to a project and/or programme financed by European Union funds: No
Section five. Award of contract/concession
Contract No
Con_30051
five.2) Award of contract/concession
five.2.1) Date of conclusion of the contract/concession award decision:
1 April 2022
five.2.2) Information about tenders
The contract/concession has been awarded to a group of economic operators: No
five.2.3) Name and address of the contractor/concessionaire
St Giles Hotel Ltd
Bedford Avenue
London
WC1B 3AS
Country
United Kingdom
NUTS code
- UKI32 - Westminster
The contractor/concessionaire is an SME
Yes
five.2.4) Information on value of the contract/lot/concession (at the time of conclusion of the contract;excluding VAT)
Total value of the procurement: £3,801,714
Section six. Complementary information
six.3) Additional information
For the purposes of the values quoted in this notice: (i) the original value of the contract at award was £3,801,714; and (ii) following the modification referred to in section VII.2.1 below the total overall value of the contract is £4,199,714.
six.4) Procedures for review
six.4.1) Review body
Westminster City Council
Westminster City Hall, 64 Victoria Street
London
SW1E 6QP
Country
United Kingdom
Section seven: Modifications to the contract/concession
seven.1) Description of the procurement after the modifications
seven.1.1) Main CPV code
- 55100000 - Hotel services
seven.1.3) Place of performance
NUTS code
- UKI32 - Westminster
Main site or place of performance
Westminster
seven.1.4) Description of the procurement:
The nature and quantity of the services will be the same as provided for in the original contract. Only the expiry date of the contract will change.
seven.1.5) Duration of the contract, framework agreement, dynamic purchasing system or concession
Duration in months
39
seven.1.6) Information on value of the contract/lot/concession (excluding VAT)
Total value of the contract/lot/concession:
£4,199,714
seven.1.7) Name and address of the contractor/concessionaire
St Giles Hotel Ltd
London
Country
United Kingdom
NUTS code
- UKI32 - Westminster
Companies House
02954321
The contractor/concessionaire is an SME
Yes
seven.2) Information about modifications
seven.2.1) Description of the modifications
Nature and extent of the modifications (with indication of possible earlier changes to the contract):
The contract is being modified to extend the term in accordance with Regulation 72(1)(b) of the Public Contracts Regulations 2015. An extension to the term is necessary to avoid a gap in the services while WCC carries out a new procurement process.
Given demand for services is increasing and suitable accommodation in the borough being scarce, the design of the re-procurement requires further consultation/consideration, to ensure that any future contract was fit for purpose (to include a revised delivery model and pricing structure). A contract extension is required until December 2025 to accommodate the timeframe to conduct the new procurement procedure and facilitate a transition period for any new providers appointed.
seven.2.2) Reasons for modification
Need for additional works, services or supplies by the original contractor/concessionaire.
Description of the economic or technical reasons and the inconvenience or duplication of cost preventing a change of contractor:
WCC takes the view that the above-mentioned three-month extension is a permissible modification pursuant to Regulation 72(1)(b) of the Public Contracts Regulations 2015.
A change in contractor cannot be made as WCC considers that it would be uneconomical and impractical for a short-term change of contractor to take place. The majority of the contract price relates to staffing costs, rather than the costs of the accommodation, and the Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE) would apply to those staff if there was a change in contractor for this six-month period. WCC believes it would not be economically viable for staff to be transferred to an alternative provider of the services on a short-term basis. Additionally, a change in contractor would involve a circa three-month mobilisation to begin providing the services, thereby risking a gap in the provision of the services. Continuity and consistency of support to service users is critical and a change in contractor for such a short period of time could prove incredibly disruptive for those service users.
In the event WCC was required to change contractor at this juncture, particularly for a short period of 3 months, this would cause significant inconvenience and substantial duplication of costs for WCC. This would require substantial duplication of effort to mobilise a new contractor for a short period of 3 months, in addition to the resource/effort required to conduct a further procurement process in tandem with preparing for the re-procurement in respect of the longer-term contract. This would be highly disruptive to WCC’s operations and would entail a duplication of costs that would not be an effective use of taxpayers’ funds.
WCC is subject to statutory obligations to provide the services and the disruption caused by a change of contractor at this stage would create a real risk that WCC’s ability to properly discharge those obligations would be compromised.
seven.2.3) Increase in price
Updated total contract value before the modifications (taking into account possible earlier contract modifications, price adaptions and average inflation)
Value excluding VAT: £3,801,714
Total contract value after the modifications
Value excluding VAT: £4,199,714