Insolvency Services

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  "description": "This Voluntary Ex Ante Transparency (VEAT) notice is issued to provide notice of the decision to extend the Insolvency Services Framework Agreement beyond its initial four-year term. The framework was originally entered into on 01.07.22 for a duration of four years and therefore is due to terminate on 30.06.26. The intention is to award an extension to the contract for a further 9 months resulting in a termination date of 30 March 2027.  The extension is necessitated by unforeseen circumstances related to the subject matter of the contract that have significantly impacted the insolvency landscape. This notice is in compliance with Regulation 34 and Regulation 72(1)(c) of the Public Contracts (Scotland) Regulations 2015 (PC(S)R 2015) in that (i) a framework in excess of 4 years is only permissible where this is justified in exceptional cases because of the subject matter of the framework and (ii) unforeseen circumstances have arisen which were unforeseen at the time of the original procurement.\nThe exceptional circumstances relating to the extension of the framework beyond the 4-year term relate to the subject matter, in that an independent review of Scotland’s statutory debt solutions (the MacDermid Review) is currently ongoing, with findings expected in late 2025. The review is likely to recommend legislative reforms that would potentially reshape the statutory framework governing insolvency and diligence and will require timescales for implementation. As a result, this will change the approach in dealing with these services. This will need to be featured in the new framework advertised moving forward.\nThe unforeseen circumstances are as follows:  (a) Impact of the COVID-19 Pandemic has had a profound and unprecedented impact on the operational landscape of insolvency services. The pandemic has led to significant disruptions in the market, affecting the availability and delivery of services under the framework. These disruptions were unforeseeable at the time of the framework's inception and have necessitated a reassessment of the framework's duration to ensure continued compliance and service delivery whilst awaiting the outcome of the policy review (b) given the change since the implementation of the framework, together with the policy/statutory changes will result in changes to approach which has further contributed to the need for an extension. The extension will provide the necessary time to implement these changes effectively, ensuring that the new framework will be fit for purpose.\nIn light of the unforeseen circumstances detailed above, extending the Insolvency Services Framework Agreement is both necessary and justified. This extension will ensure that the framework remains compliant with regulatory requirements, continues to deliver essential services effectively, and aligns with evolving policy and organisational objectives. The extension is a prudent measure to address the challenges posed by these unforeseen developments, thereby safeguarding the integrity and functionality of the framework.\nAiB intend to engage with the market to help shape the next insolvency services procurement exercise in due course.\n(SC Ref:799508)",
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