Find a TenderAwarded without competition
Published 30 Aug 2022, 16:39 BST

Official UK procurement notice

Contract Modification (under Regulation 43 Concession Contracts Regulations 2016) to the Quay Management Agreement between Shepherd Offshore Services Limited and Newcastle City Council

Official notice

Authority: Newcastle City Council (Local council)

ServicesAward procedure without prior publication of a call for competition
Awarded value£265,119,131published contract · exc. VAT
Awarded 6 Aug 2001no call for competition
Awarded to Shepherd Offshore Services Limited

What is being bought

Published requirement description

In August 2001, Newcastle City Council ('the Council') awarded a contract to provide a quayside management service to Shepherd Offshore Services Limited ('SOSL'), whereby SOSL operates port activities at Walker Quay ('the Quay') on behalf of the Council ('the Contract').

The Contract term is 25 years from 6 August 2001, and is due to expire on 31 March 2026. SOSL is remunerated solely by receiving a share of the income from operating the Contract.

The Council has become aware of the need for considerable remediation works to be carried out to the Quay prior to the expiry of the Contract which is the responsibility of the Council, therefore a contract modification has been made to extend the term of the Contract.

CPV: Port and waterway operation services and associated services

The lotProcurement structure

single lot · no lot value published
Lot #1Following the commissioning of a survey of Walker Quay, the Council has become aware…Awarded

Following the commissioning of a survey of Walker Quay, the Council has become aware of the need for considerable remediation works to be carried out to preserve the structural integrity of the Quay and associated facilities ('the Works'). For safety reasons, the Works are required to be carried out prior to the expiry of the Contract. The Works will not improve the Quay but are necessary maintenance in order to maintain operations at the Quay.

The Works will disrupt the normal operations and turnover of the Quay for the remaining term of the Contract to 31 March 2026. As a result, in order to compensate SOSL for losses it will incur as a result of the Works, the Council has entered into an extension of the Contract for a further 9.7 years.

Delivery: North East · Walker Quay, Newcastle-upon-Tyne.

Procedure terms & legal framework

From the official record · publisher note attached
Procedure method
Award procedure without prior publication of a call for competition
Legal basis
CELEX · 32014L0024 Public Contracts Regulations 2015 (Directive 2014/24/EU)
Procurement category
Services
Notice status
Awarded without competition
Procurement threshold
Unspecified in notice
Regulatory regime
Standard
Commercial structure
Stand-alone contract (no framework)
Competition type
Direct award (no call for competition)
GPA / WTO covered
Unspecified in notice
Recurring procurement
Unspecified in notice
First published
30 Aug 2022, 16:39 BST
Last source update
30 Aug 2022, 16:39 BST
FTS notice number
2022/S 000-024205
Classification (CPV)
Port and waterway operation services and associated services
Delivery area
North East (UKC22)
Official registry OCID
ocds-h6vhtk-03642c Find a Tender
Why no open competition
The procurement falls outside the scope of application of the directive
Published justification

Explanation in Section VI. Complementary Information.

Publisher note: This Notice is to advise of a contract modification and is published to satisfy the Concessions Contracts Regulations 2016 ('CCR'). The Council has made the decision to modify its current contract for quay management services to extend the Contract term by 9.7 years. Regulation 43 of the CCR permits variations to existing contracts without undertaking further competition in certain circumstances. Regulation 43(1)(e) CCR permits modifications to be made to existing concession arrangements, irrespective of value, if they are not substantial within the definitions provided at Regulation 43(9) CCR. The extension to the Contract is not substantial within Regulation 43(9) CCR for the following reasons: (a) the extension does not render the concession contract materially different in character from the one initially concluded, because the object of the Contract will remain as the exclusive provision of quay management services to the users of the Quay together with ancillary port activity; (b) the extension does not introduce conditions which would have attracted a larger or different pool of applicants that those originally selected, or would have resulted in a different tender being selected as the winning tender, because the circumstances leading to the extension were not known to the Council at the time of entering into the Contract and the extension opportunity would therefore have been available to any bidder who won the original procurement; (c) the extension does not change the economic balance of the Contract in favour of SOSL in a manner which was not provided for in the original contract, as the extension puts SOSL in the position it would have been if that extension had not been required. Further, the term of the extension, which is the contractual equivalent for compensation which would otherwise be due to SOSL for permitting the Works to be undertaken over the remaining term of the Contract, is supported by technical and financial analysis carried out by an independent expert report prepared by WSP. (d) the extension does not change the scope of the Contract considerably, because the extension will be on materially the same scope in terms of services provided, other than some additional services to assist the works contractor which will be separately appointed by the Council to carry out the remediation works. (e) there is no replacement concessionaire proposed in the contract modification.

Commercial outcome & contract awards

Published awards, contracts and bid statistics, not a forecast
Awards 1
Awarded value £265,119,1311 contract exc. VAT
Bids received 2
Contracts signed 1latest 6 Aug 2001
Awarded toValueDateStatus
Shepherd Offshore Services LimitedContract Modification to Newcastle City Council Quay Management Agreement£265,119,131 †—Awarded

Contracts

Bid statistics published by the authority

BidsSMEVCSEValid bid range
2bids———

Contracting authority & participating public bodies

Newcastle City Council

Contracting authorityLocal CouncilRegional or local authorityGeneral public services Barras Bridge, NEWCASTLE-UPON-TYNE, North East, NE1 8QHContact name, email, phone

Dispute resolution & review bodies

  • High Court of JusticeReview body London

Bidders & participating suppliers

1 commercial party on the notice

Official documents & specifications

Official links; attachments are not copied

No document links were published on the notice.