Find a TenderAwarded without competition
Published 20 Jan 2023, 15:05 GMT

Official UK procurement notice

New Oncology Wing (PFI Scheme)

Official notice

Authority: Leeds Teaching Hospitals NHS Trust (Central government)

ServicesAward procedure without prior publication of a call for competition
Awarded value£119,000,000published contract · exc. VAT
Awarded 16 Jan 2023no call for competition
Awarded to MEDIPASS HEALTHCARE LIMITED

What is being bought

Published requirement description

In 2001 the Trust ran a competitive procurement process and procured a Project Co to enter into a project agreement relating to the design and build of an oncology centre at St James’s University Hospital and the provision of related services (“PFI”).

CPV: Construction work for buildings relating to health · Medical equipments · Medical information systems · Repair and maintenance services of building installations · Repair and maintenance services of medical equipment

The lotProcurement structure

single lot · no lot value published
Lot #1The OJEU Notice published by the Trust on 18 October 2001 described the project as:

The OJEU Notice published by the Trust on 18 October 2001 described the project as:<br/><br/>“…the design, build, finance and ongoing maintenance of a large new wing for medical and surgical oncology and associated services. The project includes building maintenance services – operational services such as domestics, catering and portering are not included in the project. The supply and maintenance of equipment (including IT clinical treatment systems and PACS) will form an integral and substantial element of the project. The new wing will include linear accelerator bunkers, in-patient beds, operating theatres and critical care beds. The value of the services is not yet known. The estimated capital value of the project is approximately £136 million.” Additional information: The MES Contract is an integrated part of the PFI. The term of the PFI is 33 years and the initial term of the MES Contract is 15 years from the ‘Actual Completion Date’ of 14 December 2007. The PFI provides for a possible extension to the MES Contract in the form of a clear, precise and unequivocal review clause. <br/><br/>Section V.2.1) below is the date of the decision to award the Main Extension

Extensions: Option to extend the term length of the managed equipment service contract (“MES Contract”) in schedule 13, clause 12 PFI Agreement.

Procedure terms & legal framework

From the official record
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
Yes (GPA)
Recurring procurement
Unspecified in notice
First published
20 Jan 2023, 15:05 GMT
Last source update
20 Jan 2023, 15:05 GMT
FTS notice number
2023/S 000-001868
Classification (CPV)
Construction work for buildings relating to healthMedical equipmentsMedical information systemsRepair and maintenance services of building installationsRepair and maintenance services of medical equipment
Delivery area
Yorkshire & Humber (UKE42)
Official registry OCID
ocds-h6vhtk-039956 Find a Tender
Why no open competition
The procurement falls outside the scope of application of the directive
Published justification

The ‘Equipment Term’ is defined in schedule 1 of the PFI Agreement as 15 years. The Trust’s position is that the extension to the MES contract is a permitted modification under Regulation 72(1)(a) Public Contract Regulations 2015 (as amended) (“PCR 2015”). The PFI confers an opportunity for the Project Co to deliver MES services for the full 33 years by virtue of a clear, precise and unequivocal contractual clause in schedule 13, clause 12 of the PFI, which permits the Trust to extend the ‘Equipment Term’ thereby extending the responsibilities of Project Co for the delivery of MES services.<br/><br/>Schedule 13, clause 12 of the PFI provides that at the end of the ‘Equipment Term’ the Trust has an option to extend:<br/><br/>“12 At the expiry of the Equipment Term, the Trust may, at its option, elect in respect of each item of Equipment to:-<br/>…<br/>12.2 extend the Equipment Term subject to agreement by the parties…”<br/><br/>Clause 12 does not limit the duration of the extension to the ‘Equipment Term’ and the Trust considers it is permitted to extend the MES Contract to the end of the term of the PFI. The Extended Period will be on the same terms and price as provided for in the initial term of the MES Contract therefore the economic balance of the arrangement is not in favour of the MES Contract provider. <br/><br/>The Contract Notice published on 18 October 2001 states the “33 years from financial close (although the medical equipment element is expected to run for 15 years)”. The Trust considers that this is merely describing the initial term of the MES contract whereas the project documents awarded expressly provide for the MES Contract to be extended at the expiry of the initial 15 years. Therefore, the Trust does not consider the Contract Notice to preclude the possibility of an extension of the MES Contract within the 33-year duration of the PFI.

Review and risk notes
Review procedure

In accordance with Regulation 88 to Regulation 102 of the PCR 2015 (particularly, Regulations 92, 93, 94 and 99 in relation to deadlines).

Commercial outcome & contract awards

Published awards, contracts and bid statistics, not a forecast
Awards 1
Awarded value £119,000,0001 contract exc. VAT
Contracts signed 1latest 16 Jan 2023
Awarded toValueDateStatus
MEDIPASS HEALTHCARE LIMITEDSME£119,000,000 †—Awarded

Contracts

Contracting authority & participating public bodies

Leeds Teaching Hospitals NHS Trust

Contracting authorityCentral GovernmentBody governed by public lawHealth Great George Street, Leeds, Yorkshire & Humber, LS1 3EXContact name, email

Dispute resolution & review bodies

  • The High CourtReview contact point 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.