The Supply of Medical Gases

CPV: Gases · Medical gases

Places

up to 1 suppliers · 2 bids received (2.0 per place) · 1 appointed (full)

Procedure method

Negotiated without publication of a contract notice

Legal basis

CELEX · 32014L0024 Public Contracts Regulations 2015 (Directive 2014/24/EU)

Procurement category

Goods

Notice status

Awarded

Procurement threshold

Unspecified in notice

Regulatory regime

Standard

Commercial structure

Framework agreement

Who may use this agreement

Not stated in the notice; call-off rights may be limited to the establishing authority

Competition type

Competitive procedure

GPA / WTO covered

Yes (GPA)

Recurring procurement

Yes

First published

1 Jun 2023, 17:48 BST

Last source update

29 Jul 2026, 11:47 BST

Award evaluation window

3 Jul 2023 – …

Authority reference

LSL/MED/0120

FTS notice number

2026/S 000-071621

Classification (CPV)

GasesMedical gases

Delivery area

UK

Official registry OCID

ocds-h6vhtk-03d31c Find a Tender

Why no open competition

No tenders or no suitable tenders/requests to participate in response to open procedure; The works, supplies or services can be provided only by a particular economic operator due to absence of competition for technical reasons

Published justification

This contract was originally tendered under PCR2015 using the Open Procedure in late 2023 for a 4-year contract (Jan 2024 – Dec 2027). The advertised Award Notice value for the contract was £9.25M. It was one of 3 gas contracts awarded to BOC Limited by Leidos following 3 failed competitions. The current contract (“the Medical Gases Contract”) is due to end on 31st December 2027.

The other two contracts awarded to BOC were: (i) The Supply of Industrial Gases (“the Industrial Gases Contract”) also under PCR, currently due to end also on 31st December 2027, and (ii) the contract for the Supply & Support of Refrigerant Gases, Bulk and Cryospeed Gases & Associated Equipment (“the Refrigerant Gases Contract”) under DSPCR, which is due to end on 31st December 2030.

Leidos now intends to extend both the Medical Gases Contract and the Industrial Gases Contract for 3 years to make their end dates coterminous with the Refrigerant Gases Contract in 2030 thereby enabling all three to be re-aggregated and let together in the future. Having attempted (unsuccessfully) to disaggregate the three requirements previously in the hope of generating more competition it is now felt that there is more logic in enabling a more consolidated, cost-effective and cohesive single gases tender approach.

The proposed strategy allows time for further developments in the gases supply markets that could prevent a repeat of the failed tenders at the end of 2023.

This new approach also eliminates the significant inconvenience and substantial duplication of costs for the contracting authority of running three tenders rather than a single consolidated one.

To facilitate the proposed contract extension, it is proposed to modify the value of the Framework Contract originally awarded to BOC ( original value £9.25m) to £13.75m on the basis that the provisions of PCR Regulation 72 (Modification of Contracts during their term): 72 (1) (b): apply- i.e.:

“ …Contracts and framework agreements may be modified without a new procurement procedure ….. for additional works services or supplies by the original contractor that have become necessary and were not included in the initial procurement where a change of contractor: (i) cannot be made for economic or technical reasons such as requirements of interchangeability or interoperability with existing equipment, services or installations procured under the original procurement and (ii) would cause significant inconvenience or substantial duplication of costs for the contracting authority

..provided that any increase in price does not exceed 50% of the value of the original contract.

Future demand under the extended contract is difficult to determine accurately but is likely to be affected by a (separate) increase in the MOD’s Medical oxygen gas cylinders reserve supported by supplier capital investment.

Call offs under the extended framework will be monitored and, if it is anticipated that the revised framework value might be exceeded a further VEAT will be published.

Publisher note: Please note this is an award notice, and this agreement has now been successfully awarded. The authority reserves the right to amend any condition related to security of information to reflect any changes in national law or government policy. If any contract documents are accompanied by instructions on safeguarding classified information (e.g. a Security Aspects Letter), the authority reserves the right to amend the terms of these instructions to reflect any changes in national law or government policy, whether in respect of the applicable protective marking scheme, specific protective markings given, the aspects to which any protective marking applies or otherwise. The link below to the Gov.uk website provides information on the Government Security Classification. https://www.gov.uk/government/publications/government-security-classifications

Appointment period ends

26 Jul 2023, 12:00 BST

Submission channel

{"electronicSubmission","written"}

Accepted languages

en

Bid validity

180 days from the deadline

Bids opened

3 Jul 2023, 12:00 BST

3 suppliers are admitted to this framework without individual award values or dates, see the supplier list below.

• BOC LimitedFramework contractor Woking, UK