Variation to SIM Management Services contract

Description

In April 2023, Crown Estate Scotland, as agent on behalf of the Scottish Offshore Wind Energy Council (SOWEC), appointed OVE Arup & Partners to provide a number of management and other associated services (SIM (Strategic Investment Management) Management Service Provider) to the SIM Group for an initial period of up to 12 months. Crown Estate Scotland was to be the contracting party as agent on behalf of the SIM Group pending a new legal entity (SIM legal vehicle) being created. The intention was that, once the SIM legal vehicle had been established, the contract would be novated to that newly created legal entity. Following advice from the SIM Management Service Provider, the SIM Group recommended not proceeding with the new legal entity and Crown Estate Scotland (as agent) agreed to continue to be the contracting party with OVE Arup & Partners to ensure momentum and progress with the SIM process. The value of the original appointment was GBP339,670 which was based on an assumption of a number of applications. Subsequently 45 applications were received which was in excess of the numbers assumed. As a result, there was a requirement for additional resource to be allocated to service this requirement, primarily due to the high value associated with the data being received and the outcome sought. The extra resource required to evaluate applications and provide project information to the SIM Group resulted in an increased contract value of GBP460,000. All applications to the SIM have now been evaluated and the SIM is progressing to Stage 2 ‘Investment/Implementation’. The transition and Stage 2 of the SIM process is being established and structured by the Management Service Provider, with the SIM Group and it continues to be complex. The contract includes an option to vary the total contract value up to a maximum of GBP600,000 for scope expansion. The scope expansion has been endorsed by the SIM Group and the contract value will hereby be increased to GBP600,000 to recognise the additional work required to facilitate transition and Stage 2 of the process. The contract expiration date will hereby be increased to 28th June 2024 to allow time to conclude this phase and plan for any future work.