Public procurement notice: Modification Of A Contract/Concession During Its Term
Published: 2020-09-01
Buyer: Ministry of Justice
Country: UK
Contract type: Services
CPV classification: 75100000 | 75230000 | 75231240 | 75240000 | 80400000

Technical requirements: Transforming Rehabilitation: Contracts for the Services of Rehabilitative Services and Offender Management
Following publication of contract notice ref 2013/S 183-315991, successful bidders acquired the Community Rehabilitation Companies (CRCs) and contracts were awarded on 5 December 2014 for the delivery of probation services, with contracts entered on 18 December 2014. The scope of services was a Rehabilitation Programme which involved the split of the then current probation and offender resettlement services into a single national public probation service (National Probation Service (NPS)) and the setting up of a series of independently owned and operated Community Rehabilitation Companies (CRCs) to deliver rehabilitation (probation and resettlement) services in 21 Contract Package Areas (CPAs) across England and Wales. The contracts were for a 7-year initial term with an option to extend for a further 3 years. The contracts are due to expire on 25 June 2021, following service of termination notices in December 2018 and subsequent extensions being agreed in December 2019. The GBP (£) figures quoted within the original contract award notice were the maximum anticipated, total, real value of the contracts if the contracts had been extended to the fullest amount allowed under the contract and payment by results had been paid at the maximum level in all periods including all extensions.
The scope of services was a rehabilitation programme which involved the split of the then current probation and offender resettlement services into a single national public probation service (National Probation Service (NPS)) and the setting up of a series of independently owned and operated Community Rehabilitation Companies (CRCs) to deliver rehabilitation (probation and resettlement) services in 21 Contract Package Areas (CPAs) across England and Wales.
The authority has made previous modifications which have been subject to prior modification notices (where applicable). This notice relates to modifications to the Lot 3: The Durham Tees Valley Community Rehabilitation Company (‘CRC’) contract (the Agreement) to allow the authority to provide relief for the CRC as a result of the Covid-19 pandemic. This change is made pursuant to the guidance set out in PPN2/20 (Procurement Policy Note 02/20: Supplier relief due to Covid-19). Along with the additional guidance dated 9
The CRC has prepared and delivered to the authority in writing an Exceptional Delivery Model (EDM) which sets out details of the CRC's proposals to vary the services during the ‘Covid Relief Period.’
The authority has agreed with the CRC a change to the current contract for a time limited period to provide relief to the delivery of current obligations, pursuant to the publication of PPN2/20 and PPN4/20.
— during the Covid Relief Period only (being the period from 1 April 2020 to 31 August 2020 or such other date as may be notified by the authority to the CRC prior to such date), the CRC shall have their service delivery obligations amended temporarily to reflect the difficulties of delivering their obligations (and the authority shall waive it remedies and rights under the Agreement in whole or in part in respect of such obligations). The CRC shall deliver the services to the extent provided for in the EDM and the CRC shall carry out all obligations on it as set out in the EDM,
— the CRC is not required to pay any service credits that accrue during the service credit relief period (being the period from 1 April 2020 to 31 August 2020),
— the payment mechanism is unamended, but the authority is given discretion in certain areas to address the impact of Covid-19,
— additional obligations are included on the CRC relating to transparency, open book and audit during the Covid Relief Period,
— the authority has the right to cease the relief granted and recover payments where the CRC does not comply with the amended obligations.
The authority considers the modifications of the contract without prior publication of a contract notice is permitted by the Public Contracts Regulations 2015 and Directive 2014/24/EU. The contract was modified in accordance with Regulations 72(1)(c) and/or (e)/Articles 72(1)(c) and/or (e) and accordingly does not in the authority’s view amount to the award of a new contract and/or an unlawful substantial change. The modification does not alter the overall nature of the contract and the increase in price does not exceed 50 % of the value of the original contract. As has been recognised by the European Commission (2020/C 108 I/01 refers), the Covid-19 crisis is an event which could not have been foreseen nor planned for in advance by the authority.
The modification is brought about due to the unforeseen circumstance surrounding the Covid-19 pandemic and its impact on the economy, to allow for the temporary, proportionate and appropriate relief to the CRC in line with government guidance. This modification is for a time limited period only, all relief will be lifted and the contractual obligations will apply in full against the Agreement, once Covid Relief Period has expired.


Winner: The Durham Tees Valley Community Rehabilitation Company Ltd