Official UK procurement notice
5 Councils Corporate Services Project
Authority: South Oxfordshire District Council (Local council)
What is being bought
Published requirement descriptionSouth Oxfordshire District Council, Havant Borough Council, Vale of White Horse District Council, and Mendip District Council, and Hart District Council ("the Councils") entered into a contract (for an initial duration of approximately 9 years) with Capita for a range of corporate and transactional services ("the Contract"). The opportunity was advertised under OJEU Notice 2015/S 057-100137 and the Contract entered into on 4 April 2016. Further details of the original Contract are set out in that OJEU Notice.
The Councils have previously varied the Contract as per notice numbers: 109745-2020, 187598-2020 560746-2020 and 609089-2020.
The Contract permits the Councils to enter into an extension for a total period of up to 5 years from the end of the initial term. The Councils (with the exception of Mendip Council (now Somerset Council) who will exit the Contract at its natural expiry of the initial term on 1 October 2025), intend to utilise the extension provided within the Contract to extend the services for Revenues & Benefits, and Local Land Charges only for a period of up to 3 years from the expiry date of the initial term, which may be up to October 2028 with an option to extend for a further 2 years beyond that date. South Oxfordshire District Council and Vale of White Horse District Council also wish to utilise the extension within the Contract to extend the out of hours service for Customer Services for a period of up to 3 years with the option to extend for an additional 2 years.
CPV: Business services: law, marketing, consulting, recruitment, printing and security · Car park management services · Caretaker services · Financial consultancy services · Financial transaction processing and clearing-house services · Janitorial services · Property management services of real estate on a fee or contract basis · Treasury services
The lotProcurement structure
single lot · no lot value publishedLot #1This section provides detail of the extended Contract as described above:
This section provides detail of the extended Contract as described above:
The estimated value of the extension of Local Land Charges for a period of up to 3 years is £1,100,000.
The estimated value of the extension of Revenues & Benefits for a period of up to 3 years is £23,400,000
The estimated value of the extension of the out of hours service of Customer Services for a period of up to 3 years is £226,269.
The estimated total value of the extension to the Contract amounts to £24,736,269.
Continues in Annex D1.
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
- Yes (GPA)
- Recurring procurement
- Unspecified in notice
- First published
- 10 Feb 2025, 13:07 GMT
- Last source update
- 10 Feb 2025, 13:07 GMT
- FTS notice number
2025/S 000-004339- Classification (CPV)
- Delivery area
- Official registry OCID
ocds-h6vhtk-04dd3eFind a Tender
- Why no open competition
- The procurement falls outside the scope of application of the directive
- Published justification
The Contract has previously been reduced (see notices 109745-2020, 187598-2020, 560746-2020 and 609089-2020) a summary of which is set out below.
The reduction in the I-Hub and Human Resources (Advisory) Services resulted in a reduction in Contract value of approximately £700,242 per year for the remainder of the Contract term.
The reduction in the Licensing Services resulted in a reduction in contract value of approximately £377,000 per year for the remainder of the Contract term.
The reduction in the Human Resources Operational and Payroll Services resulted in a reduction of approximately £1,012,086 per year for the remainder of the Contract term.
The reduction in the Finance Services resulted in a reduction in Contract value of approximately £634,000 per year for the remainder of the Contract term.
The reduction in the Exchequer Services resulted in a reduction in Contract value of approximately £1,630,000 per year for the remainder of the Contract term.
The reduction in the Procurement function resulted in the Contract value being reduced by approximately £2,376,000 for the remainder of the Contract term.
The reduction in the IT function resulted in the Contract value being reduced by approximately £441,000 for the remainder of the Contract term.
Further reductions include:
A reduction to front of house (Customer Services) for South & Vale and Hart, resulted in the Contract value being reduced by an approximate £1,515,385 for the remainder of the Contract term.
A reduction to Customer Services by Mendip (now Somerset) resulted in the Contract value being reduced by an approximate £1,090,000 for the remainder of the Contract term.
A reduction to IT Services by Mendip resulted in the Contract value being reduced by an approximate £321,954, per year for the remainder of the Contract term.
A reduction to IT Services by Hart resulted in the Contract value being reduced by an approximate £249,659 for the remainder of the Contract term.
This notice is concerned with invoking the extension option within the Contract to extend its term for the Revenues & Benefits and Local Land Charges services only for all Councils (except the former Mendip Council) for a period of up to 3 years, with an option to extend thereafter for a further period of up to 2 years. This notice is also concerned with invoking the extension option within the Contract to extend its term for the out of hours service under Customer Services for South Oxfordshire District Council and Vale of White Horse District Council for a period of up to 3 years, with an option to extend thereafter for a further period of up to 2 years
Taking into account the value and scale of the original Contract the Councils consider that the extension to the scope of the Contract for up to 3 years, with an option to extend for an additional 2 years, is not substantial for the purposes of Regulation 72(1)(e) of the PCR given that the original Contract provided for an extension period beyond the initial 9 year term by up to a further 5 years.
The 3-year extension has a total estimated value of £15,936,269 in the context of the original £140,262,000 Contract. In addition, the scope of the originally awarded Contract has significantly reduced and the economic balance of the Contract is moving away from the contractor by the reduction of the service opportunity despite the extension this notice is concerned with.
The Councils consider that extending the Contract in the manner proposed is for operational and commercial reasons to achieve a smooth transition.
The extension of these Services will ensure the smooth ongoing delivery of public services on a value for money basis.
- Review procedure
In accordance with Regulation 88 - 104 (Enforcement of duties through the Court) of the Public Contracts Regulations 2015 (as amended) ("PCR").
Publisher note: The estimated value in II.1.7 and V.2.4 refers to the estimated value of the extension to the Contract as described in this notice. The value of the Contract with Capita as originally awarded on 4 April 2016 was £140 262 000 as per OJEU ref: 2016/S 088-154829. The Contract has previously been varied by the Councils to remove I-Hub, Human Resources (Advisory) Services Human Resources Operational and Payroll, Finance Services and Licensing, Procurement and Exchequer Services and reduced Information Technology and Customer Services from the scope of the Contract. Please see the following notices for further information: 109745-2020, 187598-2020, 560746-2020 and 609089-2020.
Commercial outcome & contract awards
Published awards, contracts and bid statistics, not a forecast| Awarded to | Value | Date | Status |
|---|---|---|---|
| Capita Business Services Ltd | £24,736,269 † | — | Awarded |
Contracts
Contract 004339-2025-1 · Capita Business Services Ltd
- Signed
- 5 Aug 2024
- Value
- £24,736,269
- Status
- active
Contracting authority & participating public bodies
Dispute resolution & review bodies
- Royal Courts of Justice, The StrandReview body
Bidders & participating suppliers
1 commercial party on the notice- Capita Business ServicesAwarded supplier
Official documents & specifications
Official links; attachments are not copiedNo document links were published on the notice.