Contract Extension

This paper requests approval to extend an existing contract to allow sufficient time to complete procurement and obtain approval to award the replacement contract.

Due to the confidential nature of the proposal the detail is held in Part 2.

That the DMPC

1. Approve the extension of the existing contract by up to £400,000 and 3 months to 31st December 2016. Extension by £400,000 will bring the contract value to £7,900,000 and represents a 5.33% increase on the revised value of the contract of £7,500,000.
2. To note that this is a critical service provision and the requested extension provide sufficient time to complete the required actions to establish the new contract.

Introduction and background

As part of the on-going process of managing contracts and tendering/re-tendering for goods and services, Procurement Services identifies contracts which require DMPC approval for either extension or to initiate contract action to tender or re-tender for goods or services or to award contracts.

The contract is due to expire in October 2016 and there is a need to conduct an extension to the existing contract to provide sufficient time to complete the evaluation and obtain the necessary approvals to award the contract to the preferred bidder.

Issues for consideration

Due to the confidential nature of the proposal the detail is held in Part 2

Financial Comments

Extension by up to £400,000 will bring the contract value to £7,900,000; the £400,000 represents a further 5.33% increase on the revised value of the contract of £7,500,000.

The £400,000 total extension cost will be funded from within the existing budget.

Legal Comments

The replacement contract is exempt from the Public Contract Regulations 2006 under the Security exemption.

Equality Comments

There are no direct equality issues arising from this proposal.