Public procurement notice: Voluntary Ex Ante Transparency Notice
Published: 2021-07-06
Buyer: Department for Communities formerly the Department for Social Development DSD
Country: UK
Contract type: Services
Procedure: Contract award without prior publication
CPV classification: 72000000 | 75000000 | 75311000 | 75313000 | 75313100
Estimated value: 82250208 GBP
Award criteria: The most economic tender

Technical requirements: Further to the VEAT notice issued on 10 July 2020, REF. No 2020/S 135-333759, DfC shall enter into a contract variation of the medical support service contract with the incumbent supplier following a period of 10 days from the date of publication of this notice in accordance with Regulation 72(1)(c). The contract variation provides for an extension of two (2) years from 1 August 2021-31 July 2023.
Award of a contract without prior publication of a call for competition in the Official Journal of the European Union in the cases listed below
On 5 March 2020, DWP published a PIN signalling its intent to re-procure its health and disability assessment services contract for the provision of work capability assessment services in England, Scotland and Wales. The Department for Communities agreed to join the procurement with Northern Ireland constituting a separate lot. The re-procurement of the HDAS Contract was in accordance with Section 7 of the PCR 2015. However, the Covid-19 pandemic began impacting on the UK, in particular for the Department, impacting both the delivery of health assessment services, and the planned launch of the procurement. The continuation of the provision of services under the current contract over a period of 2 years has become necessary.
(i) The need for modification has been brought about by circumstances which a ‘diligent contracting authority’ could not have foreseen. Covid-19 is a unique event whose impact could not have been foreseen; and
(ii) The modification does not alter the overall nature of the contract; The services to be provided by the incumbent will remain consistent and there will be no alteration to the overall nature of the contract, and.
(iii) The modification does not exceed 50 % of the original contract value. The price to be paid for the extended period of the Contract does not exceed 50 % of the original value of the contract; and
(iv) DfC will publish a modification notice pursuant to Regulation 72(3) of PCR. Please see Section VI.3) for additional information.
The impact of Covid-19 on health assessment services has been, and continues to be significant. DfC had to act quickly to implement a number of changes to service delivery, both to ensure the health and wellbeing of the public, its own employees and health assessment provider staff, and in response to the effect of the pandemic on the capacity of DfC and its assessment provider to deliver health assessment services. These changes included the temporary suspension of face to face assessments, and the introduction of telephony based assessments. The changes implemented to date, combined with the effect of two waves of the pandemic in the past year and the potential impacts of an impending third wave and possible further waves continue to be challenges to DfC’s efforts to stabilise the service in advance of any procurement. Given that Work Capability Assessments (WCA) undertaken as part of the contract services support critical statutory welfare benefits catering for vulnerable people, a gap in service provision is not an option. DfC has therefore concluded that extending the existing MSS contract for up to 2 years is the best option for:
(ii) ensuring a continuous service for these complex and vitally important services, which support delivery of statutory welfare benefits to vulnerable claimants each year; and
(iii) allowing DfC to fully understand and evaluate the impacts of Covid-19 ahead of any future procurements or decisions on service delivery DfC will continue to implement steps to secure further efficiencies and service improvements in the way that the existing contract is currently delivered and in particular throughout the extension period and will monitor performance in order to demonstrate value for money. DfC, partnering with DWP, intends to continue engaging with the market to discuss the future transition of work capability assessment services and the future of health assessments more broadly. DfC will build in periodic reviews (4-6 monthly) to identify whether longer or shorter extensions than 24 months are needed..


Winner: Atos Origin IT Services Ltd
Award value: 82250208