Purpose

The purpose of the report is to seek approval to modify the
contract with Morris Bakeries Ltd for Bread and Morning goods in
accordance with Public Contract Regulations 2015 as
follows:
 

Regulation 72(1)(a) – by extending the
contract by 24 months from 1st February 2026 until 31 January
2028;
Regulation 72(1)(a) – by amending the
pricing of the contract from 1st February
2026.

 
This modification is justified as the
requirements of Public Contract Regulations 2015 Regulation
72(1)(a) are met as the provision for the requested modifications
are set out in the contract in clear, precise and unequivocal
terms.
 

Decision

(i)            
That, in accordance
with Public Contract Regulations 2015, Regulation 72(1)(a), the
contract with Morris Bakeries Ltd for Bread and Morning Goods be
modified by extending the term as provided for within the existing
contract at Clause 3.1 in conjunction with the Specification from
1st February 2026 by 24 months (2 years) until 31 January
2028;
 
(ii)           
That, in accordance
with Public Contract Regulations 2015, Regulation 72(1)(a) the pricing in the
contract with Morris Bakeries Ltd for Bread and Morning Goods be
modified from 1 February 2026 as set out in Appendix 1 as provided
for in the existing contract at clause 42.4, due to a range of
inflationary pressures affecting certain sectors of the Bread and
Morning Goods supply chain; and
 
(iii)         
That the Procurement
Team be authorised to issue the
relevant contract modification documentation.
 

Alternative options considered

Do Nothing: This option was considered and rejected as the
Bread and Morning Goods contract held by Morris Bakeries Ltd would
expire and this would compromise the ability of the service to meet
its obligation to feed children and young people on a daily basis whilst at school.
 
Seek Competition (Quotation / Tender): Ceasing the contract
and reprocuring would not be prudent at the current time due to the
volatility in food pricing, it is most likely that if we opted to
try to let a new contract for Bread and Morning Goods the
commercial terms are highly likely to be less favorable due to the
ongoing uncertainty experienced in the food service industry. As
well as being unlikely to secure better commercial terms for
comparative products there would also be increased disruption
whilst an alternative supplier was sought.