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Regulation 13 Modification of contracts and framework agreements during their term

Original text. Later amendments are not shown.

(1)

This paragraph applies where the Direct Award Process 1 was followed for the original award of a contract. The contract may be modified during its term without following a new procurement process under these Regulations where the modification does not render the contract materially different in character.

(2)

Paragraph (3) applies where the Direct Award Process 2, the Most Suitable Provider Process or the Competitive Process was followed for the original award of a contract or conclusion of a framework agreement.

(3)

The contract or framework agreement for relevant health services may be modified during its term without following a new procurement process under these Regulations only where one or more of the conditions in paragraph (4) apply.

(4)

The conditions are—

(a)

the modification is clearly and unambiguously provided for in the contract or framework agreement,

(b)

the modification is solely a change in the identity of the provider due to succession into the position of provider following corporate changes including, for example, takeover, merger, acquisition or insolvency and the relevant authority is satisfied that the provider meets the basic selection criteria,

(c)

the modification does not render the contract or framework agreement materially different in character and is made in response to external factors beyond the control of the relevant authority and the provider including, but not limited to—

(i)

changes in patient or service user volume, or

(ii)

changes in prices in accordance with a formula provided for in the contract, or

(d)

the modification is attributable to a decision of the relevant authority and both of the criteria in paragraph (5) are met.

(5)

The criteria are—

(a)

the modification does not render the contract or framework agreement materially different in character, and

(b)

the cumulative change in the estimated lifetime value of the contract or framework agreement since it was entered into or concluded is—

(i)

below £500,000, or

(ii)

less than 25% of the estimated lifetime value of the existing contract or framework agreement when it was entered into or concluded.

(6)

The relevant authority must submit for publication a notice of the modification where—

(a)

a modification is made to a contract or framework agreement in accordance with paragraph (1) or (3),

(b)

the modification is attributable to a decision of the relevant authority, and

(c)

the cumulative change in the estimated lifetime value of the contract since it was entered into, or framework agreement since it was concluded, is £500,000 or more.

(7)

The notice in paragraph (6) must—

(a)

include the information set out in Schedule 13, and

(b)

be submitted for publication within 30 days of the modification of the contract or framework agreement.