DSD Medical Support Services

Contracts

• Contract 006084-2023-Project 71-1 · Atos IT Services UK Limited

  Signed

  31 Dec 2010

  Value

  £122,889,411

  Period

  31 Dec 2010 – 1 Mar 2024

  Status

  active

  • Change Nature and extent of the modifications (with indication of possible earlier changes to the contract): Extension of contract term by additional 7 months until 01.03.2024 due to an ongoing procurement process. On 5 March 2020, DWP published a Prior Information Notice 2020/S 046-109668 as notification of its intent to re-procure its Work Capability Assessment Contracts for assessment services in accordance with Section 7, PCR as part of a larger procurement for other types of assessment services (FAS procurement). The Department for Communities agreed to join the procurement with Northern Ireland constituting a separate geographic Lot. Due to the impact of the COVID-19 Pandemic the new procurement was delayed and the WCA Contract was extended for the reasons set out in Voluntary Ex Ante Transparency Notice 2020/S 135-333759. The FAS procurement was launched on 12 November 2021 and, although a light touch regime procurement, was based on a competitive dialogue procedure, the commencement of which included the submission of indicative bids. During dialogue it became apparent that the contract value envelope for the FAS procurement needed to be revised in order to provide these key public services effectively. The procurement was therefore halted temporarily with a view to re-engaging with stakeholders. It had also become clear that the ratio of face-to-face assessments versus remote assessments needed to be reviewed given the continuation of the Pandemic and further time was spent ensuring the contractual arrangements had built-in flexibility to deal with changing circumstances and impact the above changes. DWP and DfC also considered that a further round of commercial dialogue (not originally planned) was necessary to ensure the quality of BAFO submissions in the face of the revised contractual framework. Due to these various activity streams, it was therefore impossible for DWP and DfC to avoid a negative impact on its original timetable. The procurement is now well underway. DWP and DfC do not envisage there will be cause for further delay. However, due to the additional activities and subsequent delay (see above) in order to ensure an efficient and smooth handover between the MSS and the new FAS providers during an appropriate implementation period, DfC considers an extension of 7 months to the MSS contracts term is necessary. Without an extension there could be a delay to provision of assessments for the critical statutory welfare benefits which MSS services encompass. As the recipients of these welfare benefits constitute a vulnerable section of society, DfC is of the view such an extension is necessary to ensure they are not disadvantaged further., Need for additional works, services or supplies by the original contractor/concessionaire: DfC considers Regulation 72(1)(b) PCR is applicable. For the reasons in VII.2.I) above, the provision of additional services until 1 March 2024 has become necessary and: (i) interchangeability issues with a new supplier means these key services could be negatively impacted. The implementation of the contract currently being procured necessitates a lengthy handover period therefore it is not possible to introduce a new provider for the additional 7 months. A change in supplier without a full handover programme (which includes transition to a new managed IT service necessitating dual running of systems) would risk delivery of these services which provide critical statutory benefits to vulnerable people; (ii) appointing a new supplier to cover the extra 7 months (which DfC do not consider a viable option) at the same time as the incumbent was engaged in handover to the new FAS supplier means significant duplication of costs particularly as DfC would be paying additional costs already during the implementation period; and (iii) value of the contract for the extended period does not exceed 50% of value of original contract