Extension to Soft FM Services - North (Cluster) - Modification Notice

Contracts

• Contract 010590-2026-Con_14523-1 · Sodexo Limited

  Signed

  20 Nov 2017

  Value

  £206,416,600

  Period

  … – 31 Oct 2027

  Status

  active

  • Change This notice relates to the modification of a contract in accordance with regulation 72(1)(b) PCR. Additional services by the original contractor have become necessary. A change of contractor cannot be made for economic or technical reasons such as requirements of interoperability with existing services and a change of contractor would cause significant inconvenience and substantial duplication of costs for MoJ. The MoJ intends to implement a new delivery model for the future provision of facilities management services across the MoJ estate. This new model will be delivered via the Property Transformation Programme (PTP). This programme includes those services currently being provided under this contract and the PTP procurements are currently at evaluation stage. The existing contract was previously extended on 26/09/2024 but, given the size and complexity of PTP, it will not be fully mobilised until late 2027. The MoJ has therefore determined that it is necessary to extend the existing contract by 13 months from September 2026 to October 2027 to ensure continuity of critical services whilst the PTP procurement processes conclude. The additional services refer to the continued provision of services by the original contractor over the extension period. These additional services are necessary to enable continued service provision and also to prepare for service transition to a new provider(s) to be appointed under the PTP procurement processes referred to above. For various reasons, as set out below it would not be possible to run a procurement for a new contractor to provide these services over a 13- month period. The FM services to be supplied are complex, deliver in live operational sites and require a vetted workforce and supply chain. Although alternative suppliers exist for FM services in general, it would not be feasible for MoJ to competitively procure and successfully mobilise a new contract with an alternative supplier to the existing contractor Sodexo Ltd, in advance of the anticipated transition to PTP. The increase in price as a result of the extension is less than 50% of the original contract value. The extension was entered into on 05/02/2026. See further VII.2.2, Need for additional works, services or supplies by the original contractor/concessionaire: Continued from VII.2.1 Both the demobilisation of the existing contract, and mobilisation phases of a replacement contract are lengthy. Anticipated mobilisation periods for new contracts as a result of the PTP processes start at a minimum of 120 days. For a 13-month extension there would be insufficient time to mobilise a new supplier, transfer staff, embed new processes and then move to a steady state service, before then demobilising the contract. It is estimated that demobilisation / mobilisation would take upwards of 12 months. This would account for a disproportionate amount of time relative to the length of the extended service required. In addition, given the commencement of mobilisation for new contracts awarded under the PTP procurement process would begin prior to the start of any new contract for a 13-month additional service period, it would mean that mobilisation activity would be happening concurrently. This is therefore not feasible. This is particularly the case given the complexities associated with mobilisation and the risk of disruption to critical public services during any mobilisation period. In addition, any change in contractor would cause a substantial duplication of costs for a 13-month continuation of services. This would include the duplication of costs associated with the preparation and transfer of staff and assets as well as the establishment of new processes and IT systems through those demobilisation and mobilisation phases.

Dispute resolution & review bodies

• High Court, Royal Courts of JusticeReview body London