Section one: Contracting authority/entity
one.1) Name and addresses
Croydon Equipment Service - Employee Mutual Partnership Opportunity
Bernard Weatherill House, 8 Mint Walk
Croydon
CR0 1EA
Country
United Kingdom
NUTS code
UKI62 - Croydon
Internet address(es)
Main address
https://in-tendhost.co.uk/croydontenders
Buyer's address
Section two: Object
two.1) Scope of the procurement
two.1.1) Title
Croydon Equipment Service - Employee Mutual Partnership Opportunity
Reference number
2024/S 000-036367
two.1.2) Main CPV code
- 85000000 - Health and social work services
two.1.3) Type of contract
Services
two.1.4) Short description
Provision of community equipment services, and business services in support of a public sector mutual
Section six. Complementary information
six.6) Original notice reference
Notice number: 2024/S 000-036367
Section seven. Changes
seven.1) Information to be changed or added
seven.1.2) Text to be corrected in the original notice
Section number
II.1.7
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II.1.7
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Value excluding VAT: £42,000,000
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Value excluding VAT:£244,000,000
Section number
II.2.4
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The Council intends to 'spin-out' the Council team which provides community equipment and wheelchair services (CES) to a public service mutual (Mutual).A Partner is sought in order to provide the following services:- CES, to be provided to residents of the Council, and in order to support the Council in delivering similar services under third party contracts (Services Limb)- business services in support of the Mutual's ongoing business plan and commercial operations (Partnering Limb)The Partner will also be a supplier under a single supplier framework, from which CES services can be called-off (Framework).The Partner is expected to work with the Mutual in order to discharge these obligations. The Council will not pay the Partner for these services but, instead, the Partner will receive shares in the Mutual should certain conditions be satisfied.
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The Council intends to 'spin-out' the Council team which provides community equipment and wheelchair services to a public service mutual (Mutual).A Partner is sought in order to provide the following services:- CES Services, comprising services: (i) to be provided to residents of the Council (Managed Services); and (ii) which support the Council in delivering similar services under third party contracts (Hosted Contracts) (Managed Services and Hosted Contracts being, together, the Services Limb); and- business services in support of the Mutual's ongoing business plan and commercial operations (Partnering Limb).The Partner will also be a supplier under a single supplier framework, from which CES services can be called-off (Framework Limb) by any other public body, including local authorities (pursuant to the process set out in the Framework Agreement and Access Agreement).The maximum value of the Framework Limb is £136,000,000. This will allow for: (i) transfer of some elements of the Hosted Contracts (Potentially Transferring Hosted Contracts), to the value of £82,000,000; (ii) £54,000,000 of new business under the framework.The maximum value of the Services Limb is £190,000,000 over the maximum, ten-year period of these arrangements. This consists of: (i) £42,000,000 for the Managed Services; and (ii) £148,000,000 in relation to the entire value of the Hosted Contracts.No value has been assigned to the Partnering Limb given that no payment will be made by the Council but, instead, the appointed Partner will take shares in the Mutual in exchange for this support.The term of the framework is 48 months and the term of the Partnering Agreement is 84 months, with a possible extension period of up to 36 months (being 120 months in total).The Partner is expected to work with the Mutual in order to discharge these obligations. The Council will not pay the Partner for these services but, instead, the Partner will receive shares in the Mutual should certain conditions be satisfied.
Section number
IV.I.3
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☐ The procurement involves the establishment of a framework agreement☐ Framework agreement with a single operator☐ Framework agreement with several operators
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☒ The procurement involves the establishment of a framework agreement☒ Framework agreement with a single operator☐ Framework agreement with several operatorsDuration of the framework agreement: 4 yearsEstimated total maximum value of purchases throughout the duration of the framework agreement: £136,000,000Parties entitled to call-off from the framework: any local authority or public body in the United Kingdom
Section number
V.2.4
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Initial estimated total value of the contract/lot: £42,000,000Total value of the contract/lot: £42,000,000
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Total value of the contract: £244,000,000.Note that, although the overall value of the Services Limb (£190M) and the Framework Limb (£136M) is £326M, the Potentially Transferring Hosted Contracts cannot be delivered under both limbs. Should they be delivered under the Framework Limb, they will cease to be delivered under the Services Limb. The total for the Potentially Transferring Hosted Contracts (£82M) has therefore been deducted from the total of £326M to avoid double counting of the Potentially Transferring Hosted Contracts.
seven.2) Other additional information
The changes noted above reflect the Council’s intentions for this procurement, which were omitted from the drafting of the original contract award notice. In particular: - the value of the Services Limb (as reflected in the procurement documents and underlying third party contracts) is £190,000,000, rather than the figure of £42,000,000 included at sections II.1.7 and V.2.4 of the original contract award notice; and- in addition to this, the Council intended that sufficient "headroom" (£136,000,000) be made available in order that other public bodies can make use of the Framework and that the Potentially Transferring Hosted Contracts can be delivered under the Framework. Without this financial headroom, the Framework Limb would have had no effect. The £82,000,000 allocated to the Framework Limb in respect of the Potentially Transferring Hosted Contracts is not "new business", but existing services valued under the Services Limb that (potentially) could transfer to the Framework Limb.The procurement documents were clear that the Council was procuring a framework agreement capable of being used by other public bodies. However, as noted above, a specific value for Framework Limb was not included in the original contract award notice; and the contract award notice did not include an explicit reference to third party access to the Framework. The procurement documents also made clear that the Framework was to be accessible by any local authority or public body in the United Kingdom, but this was not expressed in IV.1.3 of the original contract award notice.This Corrigendum rectifies these deficiencies in the original contract award notice.