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
The contract set out in OJEU contract notice was entered into by EANI’s predecessor but was novated to EANI under the Education Act (Northern Ireland) 2014. The contract was initially for 1 year with an option to extend up to a further 3 years.
A procurement for a replacement contract was expected before the natural expiry of the contract but was not possible due to organisational restructuring and analysis of performance requirements which caused delays. The contract was therefore extended by a VEAT until 31 March 2020, with only around 45-50 % of the anticipated VEAT value spent. Although a new procurement was commenced, it was further delayed by Covid-19 and another VEAT was published extending the contract until 31 August 2020. The total anticipated value of the second VEAT has also not been spent. In accordance with Regulation 72(2), these successive modifications were not aimed at circumventing Part 2 of PCR 2015.
Covid-19 remains ongoing, with new contract commencement anticipated to be 1 January 2021. EANI therefore requires another extension until 31 December 2020, with an option to extend beyond 1 January 2021, in its absolute discretion, for two further periods of 3 months up to 30 June 2021 to allow the procurement exercise to conclude.
The extension value is circa GBP 3 000 000.
The additional services, not included in the initial procurement, have become necessary and are permitted by Regulation 72(1)(b) and/or 72(1)(c) of PCR2015 as a change of contractor from 31 August 2020:
(i) cannot be made for economic and technical reasons such as requirements of interchangeability or interoperability of services procured under the original procurement given the need to ensure continued access to EANI schools and facilities. Given new contract commencement will be 1 January 2021,or asap thereafter as permitted by Covid-19, commencement of a new contractor twice in a short time period, especially in the current climate, would create risk to stability and integrity of services, be unsettling for users and could result in partial/total closure of schools and associated facilities; and
(ii) would cause significant inconvenience and duplication of costs for EANI. Any new contractor would have start-up costs in recreating the current service for an unknown time period, which would represent poor VFM, compared to extending the contract.
The following conditions have also been fulfilled:
(iii) the need for modification has been brought about by circumstances which a diligent contracting authority could not have foreseen. Covid-19 has delayed the new procurement, with such circumstances and delay, entirely unforeseeable by EANI. It is also unknown and unforeseeable when the Covid-19 outbreak will conclude. Accordingly, an extension is required to complete the new procurement and ensure continuity of service until new contract commencement;
(iv) the modification does not alter the overall nature of the contract. Only the term is being extended to allow the new procurement to conclude; and
(v) any increase in price does not exceed 50 % of the value of the original contract. The upper estimate of the original contract was GBP 8 000 000. As the maximum extension value is estimated to be approximately GBP 3 000 000, it does not exceed 50 % of the value of the original contract.