Awarded contract

Supply of Rock Salt and Associated Products Framework

  • Llywodraeth Cymru / Welsh Government - Commercial Delivery

F20: Modification notice

Notice reference: 2023/S 000-035001

Published 28 November 2023, 9:30am



Section one: Contracting authority/entity

one.1) Name and addresses

Llywodraeth Cymru / Welsh Government - Commercial Delivery

T’yr Afon, Bedwas Road

Caerphilly

CF83 8WT

Email

commercialprocurement.buildings@gov.wales

Country

United Kingdom

NUTS code

UKL - Wales

Internet address(es)

Main address

https://gov.wales/public-sector-procurement

Buyer's address

https://www.sell2wales.gov.wales/search/Search_AuthProfile.aspx?ID=AA27760


Section two: Object

two.1) Scope of the procurement

two.1.1) Title

Supply of Rock Salt and Associated Products Framework

Reference number

NPS-CFM-106-20

two.1.2) Main CPV code

  • 14410000 - Rock salt

two.1.3) Type of contract

Supplies

two.2) Description

two.2.2) Additional CPV code(s)

  • 34927100 - Road salt
  • 15872400 - Salt
  • 24951310 - De-icing agents
  • 14781000 - Potassium
  • 14311300 - Crude natural potassium salts
  • 03100000 - Agricultural and horticultural products

two.2.3) Place of performance

NUTS codes
  • UKL - Wales
Main site or place of performance

Wales

two.2.4) Description of the procurement at the time of conclusion of the contract:

Framework for the supply of rock salt and de-icing products

two.2.7) Duration of the contract, framework agreement, dynamic purchasing system or concession

Duration in months

48

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 four. Procedure

four.2) Administrative information

four.2.1) Contract award notice concerning this contract

Notice number: 2021/S 000-012902


Section five. Award of contract/concession

Contract No

NPS-CFM-106-20

Title

Supply of Rock Salt and Associated Products Framework

five.2) Award of contract/concession

five.2.1) Date of conclusion of the contract/concession award decision:

1 July 2021

five.2.2) Information about tenders

The contract/concession has been awarded to a group of economic operators: Yes

five.2.3) Name and address of the contractor/concessionaire

LBS Builders Merchant

L B S Business Centre, Parc Amanwy

Ammanford

SA183FE

Telephone

+44 7972520525

Country

United Kingdom

NUTS code
  • UKL1 - West Wales and the Valleys
The contractor/concessionaire is an SME

Yes

five.2.3) Name and address of the contractor/concessionaire

Safecote Limited

Houldsworth Mill Business Centre, Houldsworth Street

Reddish, Stockport

SK56DA

Telephone

+44 7717212313

Country

United Kingdom

NUTS code
  • UK - United Kingdom
The contractor/concessionaire is an SME

Yes

five.2.3) Name and address of the contractor/concessionaire

NGS GRITTING SERVICES LTD

RUSHINGTON BUSINESS APRK, CHAPEL LANE

SOUTHAMPTON

SO409AH

Telephone

+44 8456045459

Country

United Kingdom

NUTS code
  • UKJ32 - Southampton
The contractor/concessionaire is an SME

Yes

five.2.3) Name and address of the contractor/concessionaire

Compass Minerals UK

Bradford Road, Winsford Cheshire

Winsford

CW72PE

Telephone

+44 1606305150

Country

United Kingdom

NUTS code
  • UK - United Kingdom
The contractor/concessionaire is an SME

Yes

five.2.3) Name and address of the contractor/concessionaire

Irish Salt Mining Co. Ltd.

10, Fort Rd Carrickfergus

Co. Antrim

BT389BT

Telephone

+44 2893351151

Country

United Kingdom

NUTS code
  • UKN0 - Northern Ireland
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: £9,580,000


Section six. Complementary information

six.3) Additional information

(WA Ref:136791)

six.4) Procedures for review

six.4.1) Review body

High Court

Royal Courts of Justice, The Strand

London

WC2A 2LL

Telephone

+44 2079477501

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

  • 14410000 - Rock salt

seven.1.2) Additional CPV code(s)

  • 34927100 - Road salt
  • 15872400 - Salt
  • 24951310 - De-icing agents
  • 14774000 - Calcium
  • 14311000 - Natural calcium, aluminium calcium phosphate and crude natural potassium salts
  • 14770000 - Caesium, strontium, rubidium and calcium
  • 03100000 - Agricultural and horticultural products

seven.1.3) Place of performance

NUTS code
  • UKL - Wales
Main site or place of performance

Wales

seven.1.4) Description of the procurement:

Framework for the supply of rock salt and associated de-icing products

seven.1.5) Duration of the contract, framework agreement, dynamic purchasing system or concession

Duration in months

48

seven.1.6) Information on value of the contract/lot/concession (excluding VAT)

Total value of the contract/lot/concession:

£14,360,000

seven.1.7) Name and address of the contractor/concessionaire

LBS Builders Merchant

L B S Business Centre, Parc Amanwy

Ammanford

SA183FE

Telephone

+44 7972520525

Country

United Kingdom

NUTS code
  • UKL1 - West Wales and the Valleys
The contractor/concessionaire is an SME

Yes

seven.1.7) Name and address of the contractor/concessionaire

Safecote Limited

Houldsworth Mill Business Centre, Houldsworth Street

Reddish, Stockport

SK56DA

Telephone

+44 7717212313

Country

United Kingdom

NUTS code
  • UK - United Kingdom
The contractor/concessionaire is an SME

Yes

seven.1.7) Name and address of the contractor/concessionaire

Compass Minerals UK

Bradford Road, Winsford Cheshire

Winsford

CW72PE

Telephone

+44 1606305150

Country

United Kingdom

NUTS code
  • UK - United Kingdom
The contractor/concessionaire is an SME

Yes

seven.1.7) Name and address of the contractor/concessionaire

NGS GRITTING SERVICES LTD

RUSHINGTON BUSINESS APRK, CHAPEL LANE

SOUTHAMPTON

SO409AH

Telephone

+44 8456045459

Country

United Kingdom

NUTS code
  • UKJ32 - Southampton
The contractor/concessionaire is an SME

Yes

seven.1.7) Name and address of the contractor/concessionaire

Irish Salt Mining Co. Ltd.

10, Fort Rd Carrickfergus

Co. Antrim

BT389BT

Telephone

+44 2893351151

Country

United Kingdom

NUTS code
  • UKN0 - Northern Ireland
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):

This modification is to increase the published contract value of the WGCD (formerly NPS) Rock Salt and Associated Products Framework by 4.78million GBP

Explanation:

The Rock Salt and Associated Products Framework will reach the end of its four year term in July 2025. This modification will ensure that the framework spend remains complaint within the published contract value over the remaining duration of the framework. The modification will ensure continuity of supply of products that are critical to the safe operation of the Welsh road network.

The modification to the Framework is permissible under Regulation Reg 72 (1) (c) Public Contracts Regulations 2015. Under this Regulation amendments can be made to the framework if the following conditions are met:

(i) the need for the modification has been brought about by circumstances which a diligent contracting authority could not have foreseen;

(ii) the modification does not alter the overall nature of the contract;

(iii) any increase in price does not exceed 50% of the value of the original contract or framework agreement.

Our assessment has concluded that these conditions have been met as follows:

(i) the supplier price increases and associated higher than anticipated contract spend has been brought about by the significant increases in energy and fuel costs and inflationary increases which the WGCD could not have foreseen;

(ii) the modification does not alter the overall nature of the contract;

(iii) the increase of 4.78m GBP does not exceed 50% of the original framework value

seven.2.2) Reasons for modification

Need for modification brought about by circumstances which a diligent contracting authority/entity could not foresee.

Description of the circumstances which rendered the modification necessary and explanation of the unforeseen nature of these circumstances:

The modification in the published framework value is due to increased supplier product costs which could not have been foreseen.

The price increases have been largely driven by significant increases in fuel and energy costs over the last 12 months. The increases in fuel and energy have had a significant impact on the mining sector as its operations are heavily dependent on both.

Another contributory factor to the price increases is the higher than anticipated inflation increases over the last 12 months.

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: £9,580,000

Total contract value after the modifications

Value excluding VAT: £14,360,000