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Voluntary ex ante transparency notice
Section I: Contracting authority/entity
Section II: Object
5 Councils Corporate Services Project
South Oxfordshire District Council, Havant Borough Council, Vale of White Horse District Council, Mendip District Council and Hart District Council (‘the Councils’) entered into a contract (for an initial duration of approximately 9 years) with Capita for a range of corporate and transactional services (‘the Contract’). The opportunity was advertised under OJEU Notice 2015/S 057-100137 and the Contract entered into on 4 April 2016. Further details of the original contract are set out in that OJEU Notice.
The Councils intend to enter into a further contract variation agreement with Capita for the purposes of removing the requirement for Procurement and the majority of the exchequer services and the reduction of the current IT service requirement from the scope of the original contract.
Oxfordshire (UKJ14), Somerset (UKK23) and Hampshire (UKJ3, UKJ33).
This section provides detail of the reduction of the original contract.
The reduction in the I-Hub and Human Resources (Advisory) Services resulted in a reduction in Contract value of approximately GBP 700 242 per year for the remainder of the contract term.
The reduction in the licensing services resulted in a reduction in contract value of approximately GBP 377 000 per year for the remainder of the contract term.
The reduction in the human resources operational and payroll services resulted in a reduction of approximately GBP 1 012 086 per year for the remainder of the contract term.
The reduction in the finance services resulted in a reduction in contract value of approximately GBP 634 000 per year for the remainder of the contract term.
This notice is now concerned with the further reductions set out below:
The reduction in the exchequer services (via a contractual option, see II.2.14) would result in a reduction in contract value of approximately GBP 1 217 000 per year for the remainder of the contract term.
The reduction in the procurement function would result in the contract value being reduced by approximately GBP 366 844 per year for the remainder of the contract term.
The reduction in the IT service requirement would also result in an immaterial reduction in Contract value for the remainder of the Contract term.
Continues in Annex D1.
Continued from II.1.4) — The previous variation also conferred on the Councils a contractual option to remove the majority of the exchequer services from the contract, subject to operational and commercial considerations. The Councils will be seeking to exercise this right to remove the exchequer service (with the exception of the Integra and Pay360 software and support via the Central Support Team.
Section IV: Procedure
The contract has been reduced as per the information set out in section II.2.4).
Taking into account the value and scale of the original contract the Councils consider that the proposed modification(s) to further reduce the scope of the contract is not substantial for the purposes of Regulation 72(1)(e) of the PCR in the context of a GBP 140 262 000 contract spanning 9 years. (The 9 year term represents the contract duration of the contract, excluding any extension options). Furthermore, the economic balance of the contract is moving away from the contractor by the reduction of the service opportunity.
The Councils consider that modifying the contract in the manner proposed is for operational and commercial reasons to achieve a smooth transition and continuity are bringing these services back ‘in-house’'.
The restructuring of the services seeks to ensure the ongoing delivery of public services on a value for money basis.
Section V: Award of contract/concession
Section VI: Complementary information
The estimated value in II.1.7) and V.2.4) refers to the projected value of the diminished contract value in the event the Councils modify the Contract in accordance with the further variations set out in this notice.
Where the Councils remove the majority of the exchequer services, procurement function and reduce the IT service requirement from the contract (as set out in this notice) the estimated value of the modified contract will be GBP 126 528 796.
The value of the contract with Capita as originally awarded on 4 April 2016 was GBP 140 262 000 as per OJEU ref: 2016/S 088-154829.
The contract has previously been varied by the Councils to remove I-Hub, Human Resources (Advisory) Services Human Resources Operational and Payroll, Finance Services and Licensing Services from the scope of the Contract.
In accordance with Regulation 88 — 104 (Enforcement of duties through the Court) of the Public Contracts Regulations 2015 (as amended) (‘PCR’).