Decision

The modification of the current contract (DN 779401) to increase the value by £290,000.

Reasons for the decision

The Council acts as lead authority for the Cheshire and Merseyside Public Health Collaborative (Champs). An initial ODN was submitted on the 6th March 2025 indicating an estimated budget of £900,000.

The winning bid came in at a value of £653,009. However, in order to deliver the media buying impact required, it is necessary to utilise the full original budget to buy the required additional media space. Approval is sought to modify the original contract made between the Council/Champs and Four Agency Worldwide Limited to increase the contract value by £290,000. The increase in spend is funded from external ICB monies provided to deliver the Cheshire and Merseyside All Together Smoke Free programme. The funding comprises of the remaining £246,991 from the original £900,000 allocation, plus an additional £43,009 reallocated from within the All Together Smokefree budget to support this work. These funds will be utilised to fund additional campaign activity.

The original contract was made in accordance with the Public Contracts Regulations 2015 and, accordingly this contract is being modified in accordance with the requirements of those regulations.

Regulation 72. - Modification of contracts during their term
(1) Contracts and framework agreements may be modified without a new procurement procedure in accordance with this Part in any of the following cases:-
(a) [not relevant to these circumstances]
(b) [not relevant to these circumstances]
(c) where all of the following conditions are fulfilled:-

(i)the need for modification has been brought about by circumstances which a diligent contracting authority could not have foreseen.

(ii)the modification does not alter the overall nature of the contract.

(iii)any increase in price does not exceed 50% of the value of the original contract or framework agreement.

The unforeseen circumstances relied on to justify making this decision in accordance with Regulation 72 (1)(c)(i) are that when evaluating the original bids, the contract values were not shared with the panel as cost is no longer part of the procurement evaluation process.

Upon award of the contract when commissioners were made aware of the value of the contract/bid, it became clear that the funds allocated to media buy by the provider were not sufficient to deliver the required outcomes, and that further funding would be needed to achieve these.

Had the cost been known when the bids were evaluated the shortfall would have been apparent. Procurement has agreed that the value of the contract can be increased in this manner to ensure the required delivery and outcomes are met.

Alternative options considered

The Council/Champs retains the current contract levels. This option has been rejected as it will result in a reduced media buy capacity which in turn will have a negative impact on the Council/Champs’ ability to deliver the desired impact on the residents of Cheshire & Merseyside.