Property management services of real estate on a fee or contract basis

Description

Agreement entitling extension of 69 months by the contracting authority of an original term partnering agreement lasting 14 years. This notice does not relate to the award of a new contract but rather to an agreement modifying an existing 14-year agreement for a repair and maintenance programme (‘the original agreement’). The agreement provides the contracting authority with an option to extend the term of the original agreement by a period of 69 months. The agreement also modifies the indexation provisions in the original agreement in a manner wholly favourable to the contracting authority. In December 2007, the contracting authority advertised the procurement of the original agreement to provide for the repair and maintenance of its housing stock. The economic operator was the successful bidder for the original agreement. The original agreement provided for a 14-year term partnering arrangement between the contracting authority and the economic operator. On 27.1.2009 after the conclusion of the procurement for the original contract, the contracting authority entered into a contract with London Borough of Newham to manage properties for that authority. The economic operator for the original agreement was also successful in bidding to be sub-contractor to the contracting authority for this contract (‘the Newham sub-contract’). For the reasons set out in Section IV.1.1) below, the contracting authority considers that the award of this agreement modifying the original agreement so that it is coterminous with that sub-contract is permitted pursuant to regulations 72(1)(b) and 72(1)(c) of the Public Contracts Regulations 2015.