Modification notice

Modification of a contract/concession during its term

Section I: Contracting entity

I.1) Name and addresses

Section II: Object

II.1) Scope of the procurement

II.2) Description

Section IV: Procedure

IV.2) Administrative information

Section V: Award of contract/concession

Contract No: NPS-CFM-106-20

Title: Supply of Rock Salt and Associated Products Framework

V.2 Award of contract/concession

V.2.1) Date of conclusion of the contract/concession

01/07/2021

V.2.2) Information about tenders

The contract has been awarded to a group of economic operators: Yes

V.2.3) Name and address of the contractor/concessionaire

V.2.3) Name and address of the contractor/concessionaire

V.2.3) Name and address of the contractor/concessionaire

V.2.3) Name and address of the contractor/concessionaire

V.2.4) Information on value of the contract/lot/concession (excluding VAT)

Total value of the contract/lot: /concession: 14 360 000.00  GBP

Section VI: Complementary information

VI.3) Additional information

(WA Ref:147856)

VI.4) Procedures for review

VI.5) Date of dispatch of this notice

06/02/2025

Section VII: Modifications to the contract/concession

VII.1) Description of the procurement after the modifications

VII.1.1) Main CPV code

14410000

VII.1.2) Additional CPV code(s)

34927100

15872400

24951310

14774000

14311000

14770000

03100000

VII.1.3) Place of performance

NUTS code:

UKL

Main site or place of performance:

pan-Wales

VII.1.4) Description of the procurement

Framework for the supply of rock salt and associated de-icing products

VII.1.5) Duration of the contract, framework agreement, dynamic purchasing system or concession

Duration in months: 45

VII.1.6) Information on value of the contract/lot/concession (excluding VAT)

Total value of the procurement: 14 360 000.00 GBP

The contract/concession has been awarded to a group of economic operators: Yes

VII.1.7) Name and address of the contractor/concessionaire

VII.1.7) Name and address of the contractor/concessionaire

VII.1.7) Name and address of the contractor/concessionaire

VII.1.7) Name and address of the contractor/concessionaire

VII.2) Information about modifications

VII.2.1) Description of the modifications

This modification is to end the WGCD Rock Salt and Associated Products Framework on 31st March 2025 which is three months earlier than the published contract end date of 30th June 2025

Explanation:

Ending the current framework agreement early will allow for the next iteration of the WGCD Rock Salt and Associated Products Framework to commence on 1st April 2025 without an overlap.

Starting the new framework in April will ensure its start date aligns with the salt industry pricing cycles i.e. summer price (April to September) and Winter price (October to March)

The modification to the Framework is permissible under Regulation Reg 72 (1) (c) Public Contracts Regulations 2015. Under this Regulation amendments can be made to the framework if the following conditions are met:

(i) the need for the modification has been brought about by circumstances which a diligent contracting authority could not have foreseen.

(ii) the modification does not alter the overall nature of the contract.

(iii) any increase in price does not exceed 50% of the value of the original contract or framework agreement.

Our assessment has concluded that these conditions have been met as follows:

(i) the modification is required due to issues highlighted by framework suppliers during the contract management of the current contract. The issue had not been raised by suppliers during the management of the previous four iterations of the framework and, given that the issue is unique to the sector, is not something that could have been reasonably foreseen by the WGCD.

(ii) the modification does not alter the overall nature of the contract.

(iii) the modification will result in a slight reduction in the projected contract spend.

However, even without the modification, is not anticipated that the published contract value will be exceeded based on the current projected contract spend.

VII.2.2) Reasons for modification

Need for modification brought about by circumstances which a diligent contracting authority/entity could not foresee

Description of the circumstances which rendered the modification necessary and explanation of the unforeseen nature of these circumstances:

The salt industry has two specific pricing windows i.e. Summer price (April to September) and Winter price (October to March). The summer prices are typically less than the Winter price and is one of the key drivers for customers stock during the Summer months.

Without the modification customers will be able to order and restock from April to June 2025 based on the 2024 summer prices which will result in commercial difficulties for suppliers. Framework suppliers could submit a price revision request to update the prices for this 3-month period however this is considered a disproportion administration burden for the WGCD and its framework suppliers.

Engagement with existing framework customers and suppliers regards the modification has not raised any issues.

VII.2.3) Increase in price

Updated total contract value before the modifications (taking into account possible earlier contract modifications and price adaptions and, in the case of Directive 2014/23/EU, average inflation in the Member State concerned)

Value excluding VAT: 14 360 000.00 Currency: GBP

Total contract value after the modifications

Value excluding VAT: 14 360 000.00 Currency: GBP