Provision of an Income Management System & Associated Services

The Council have considered at an early stage the potential need for in-life contract modifications to incorporate flexibility into the Contract where appropriate and mitigating the risk of potentially unlawful modifications.

1.3.12 There are risks which may jeopardise the satisfactory performance of the Contract but, due to the nature of the risks, are unable to be addressed in the Contract as awarded. Where the relevant, conditions under Schedule 8 of the Act are satisfied, the modification of the Contract to remedy the identified risks would be treated as a permitted contract modification.

1.3.13 The potential risks are additional costs that come as a result of;

a. Chargeable upgrades or updates to the system

b. Professional services required for configuration, issue resolution, development, upgrades, tasks as yet unknown

c. Changes in hardware, required for regulatory purposes

d. Additional Chip and PIN devices

e. Additional licence costs

f. Additional Merchant IDs

g. Local Government Reorganisation ('LGR') may occur during the Term and this may result in, without limitation:

(i) the restructuring or alteration of the Council's administrative boundaries;

(ii) the dissolution, merger or transfer of the Council's functions, powers or responsibilities;

(iii) the aggregation and/or disaggregation of functions, services, systems or contracts with another organisation or organisations.

The parties acknowledge that LGR is a potential known risk that may affect the Services and agree to work in good faith and co-operation to mitigate the effects of any LGR during the Term.

In the event that LGR takes place the Council may at its sole discretion undertake one or more of the following actions:

(i) utilise existing framework agreements or establish new frameworks, services arrangement in relation to the Services.

(ii) transfer, assign or novate the Contract so as to reflect any new successor organisation, without prejudice to relevant clauses detailed in Appendix D The Contract Terms.

(iii) amend or modify Appendix D The Contract Terms to reflect the new operational requirements arising from LGR in compliance with Schedule 8 Procurement Act 2023

(iv) terminate the agreement in accordance with Appendix D The Contract Terms

These risks cannot be managed as part of the procurement process but if they were to materialise dialogue/negotiation would need to take place and any changes to the contract agreed by formal change control under the contract.