WDC - Leisure Services Contract 2017.

This modification is being made in accordance with regulation 43(1)(e) and 43(9) of the Concession Contracts Regulations 2016. Namely, the proposed modification is not substantial within the meaning of regulation 43(9) on the basis that: 1. the modification does not render the Underlying Contracts materially different in character - the proposed modification remains limited to the same type, scope and nature of services, where the operating cost risk remains with the Contractor, and the services will be delivered to the same facilities. The modifications only concern contractual changes to establish an agency model for VAT purposes and other ancillary modifications. 2. the Council has satisfied itself that the modification does not introduce conditions which would have (a) allowed for the admission of other candidates, (b) allowed for the acceptance of another tender, or (c) attracted additional participants in the procurement procedure - the change to an agency model for VAT purposes does not change the service requirement or the way in which those services are provided, and is unlikely to have changed the outcome of the procurement. 3. The modification does not change the economic balance in favour of the contractor in a manner which was not provided for in the contract - The Authority has satisfied itself that the new agency model and VAT arrangement does not impact on EA's payment under the Underlying Contracts, which remains reflective of market costs and does not amount to an over-compensation of the services to be provided. The agency model will allow for a more certain financial position to the Authority and will provide a greater surplus share than previously anticipated. 4. As per our comments at 1. above, the modification does not extend the scope of the contract. For the reasons set out above, the proposed modification does not constitute a substantial modification and is permitted by regulation 43(1)(e) and 43(9) of the Concession Contracts Regulations 2016.