N/A · Department for Work & Pensions (Nov 2022)

Contracts

• DWP Estates Security Services Contract · G4S SS UK, G4S secure Solutions (UK) Ltd

  Signed

  28 Sept 2022

  Value

  £611,550,000

  Status

  active

  • Change The modifications related to the contractual provisions governing the Critical Security Infrastructure programme, formerly Transformation, which involved both an increase in the volume of equipment being installed across the estate and the introduction of new more technologically enhanced security equipment. The modification of the contract was made by relying on Regulation 72(1)(b). This is available for additional supplies and/ or services that have become necessary and were not included in the initial procurement, where a change of contractor: (i) cannot be made for economic or technical reasons such as requirements of interchangeability or interoperability with existing equipment, services or installations procured under the initial procurement, (ii) would cause significant inconvenience or substantial duplication of costs for the contracting authority; and (iii) the increase in value does not exceed 50% of the value of the original contract. For the purposes of the Regulation 72(1)(b) the modification did involve additional services or supplies. There was an increase in volume of the same type of supplies with the same pricing model and an associated increase in the number of personnel to operate/ manage this additional equipment. The enhancements were also additional supplies being added to the respective supplies originally specified in the contract. The modification was necessitated by the updated industry performance standards as well as the Department’s own standards. A failure to comply with these standards could, in turn, compromise the safety and security of staff, contractors and visitors to the DWP Estate. For the purposes of Regulation 72(1)(b)(i) a change of contractor could not be made for technical reasons of interoperability with existing equipment procured under the initial procurement. The supplier is required to provide a fully integrated system with all equipment interacting and feeding into their network. It would not be possible for the personnel from a new supplier to interoperate with the personnel of the existing supplier. Also, there are technical interoperability issues preventing the supply of the enhancements by a second contractor. Further, as per Regulations 72(1)(b) (ii) a change of contractor would cause significant inconvenience or substantial duplication of costs. In terms of the inconvenience, introducing a new contractor would likely cause disruption and substantial delays to the CSI programme compromising the safety of staff, contractors, and visitors to the DWP Estate. Running a procurement to select a supplier to deliver these additional supplies and services and the overheads for each supplier to do so, would cause a substantial duplication in costs. Under Regulation 72(1)(b)(iii) the increase cannot exceed 50% of the original value of the Contract. The value of the Contract resulting from this modification is estimated to be around £60 million. This represents an increase of around 12% of original contract value which is below the 50% threshold., Need for additional works, services or supplies by the original contractor/concessionaire: The modification was necessitated by the updated industry performance standards as well as the Department’s own standards. A failure to comply with these standards could, in turn, compromise the safety and security of staff, contractors and visitors to the DWP Estate. Running a procurement to select a supplier to deliver these additional supplies and services and the overheads for each supplier to do so, would cause a substantial disruption and duplication in costs.

Dispute resolution & review bodies

• DWPReview body LondonContact emailShow contact details