Personal Independence Payment (PIP) Assessment Service - Contract Extension - Lot 4

Contracts

• Contract 006369-2023-UI_DWP_100432-1 · Capita Business Services Ltd

  Signed

  20 Nov 2012

  Value

  £150,999,419

  Period

  20 Nov 2012 – 1 Mar 2024

  Status

  active

  • Change 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 the Personal Independence Payment (PIP) Contracts for assessment services in GB and NI in accordance with Section 7, PCR as part of a larger procurement for other types of assessment services (FAS procurement). Due to the impact of the COVID-19 Pandemic the new procurement was delayed and the PIP Contract in NI was extended for the reasons set out in Voluntary Ex Ante Transparency Notice 2020/S 135-333753. 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. 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 PIP and the new FAS providers during an appropriate implementation period, DfC considers an extension of 7 months to the PIP contracts term is necessary. Without an extension there could be a delay to provision of assessments for the critical statutory welfare benefit which PIP services encompass. As the recipients of PIP 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: For the reasons in VII.2.I) above, 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 viable) 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.

Dispute resolution & review bodies

• Department for Work and PensionsReview body London