Croydon Equipment Service - Employee Mutual Partnership Opportunity
A Contract Addendum Notice
by CROYDON EQUIPMENT SERVICE - EMPLOYEE MUTUAL PARTNERSHIP OPPORTUNITY
- Source
- Find a Tender
- Type
- Contract (Services)
- Duration
- not specified
- Value
- ___
- Sector
- HEALTH
- Published
- 19 Dec 2025
- Delivery
- not specified
- Deadline
- n/a
Related Terms
Location
Croydon
Description
Provision of community equipment services, and business services in support of a public sector mutual
Ammendments to Previous Notice
2. II.1.7 II.1.7
Value excluding VAT: £42,000,000 VAT:£244,000,000
3. II.2.4 II.2.4
The Council intends to 'spin-out' the Council team which provides community equipment and wheelchair services (CES) to a public service mutual (Mutual).A Partner is sought in order to provide the following services:- CES, CES Services, comprising services: (i) to be provided to residents of the Council, Council (Managed Services); and in order to (ii) which support the Council in delivering similar services under third party contracts (Services Limb)- (Hosted Contracts) (Managed Services and Hosted Contracts being, together, the Services Limb); and- business services in support of the Mutual's ongoing business plan and commercial operations (Partnering Limb)The Limb).The Partner will also be a supplier under a single supplier framework, from which CES services can be called-off (Framework).The (Framework Limb) by any other public body, including local authorities (pursuant to the process set out in the Framework Agreement and Access Agreement).The maximum value of the Framework Limb is £136,000,000. This will allow for: (i) transfer of some elements of the Hosted Contracts (Potentially Transferring Hosted Contracts), to the value of £82,000,000; (ii) £54,000,000 of new business under the framework.The maximum value of the Services Limb is £190,000,000 over the maximum, ten-year period of these arrangements. This consists of: (i) £42,000,000 for the Managed Services; and (ii) £148,000,000 in relation to the entire value of the Hosted Contracts.No value has been assigned to the Partnering Limb given that no payment will be made by the Council but, instead, the appointed Partner will take shares in the Mutual in exchange for this support.The term of the framework is 48 months and the term of the Partnering Agreement is 84 months, with a possible extension period of up to 36 months (being 120 months in total).The Partner is expected to work with the Mutual in order to discharge these obligations. The Council will not pay the Partner for these services but, instead, the Partner will receive shares in the Mutual should certain conditions be satisfied.
4. IV.I.3 IV.I.3
☐ ☒ The procurement involves the establishment of a framework agreement☐ agreement☒ Framework agreement with a single operator☐ Framework agreement with several operators operatorsDuration of the framework agreement: 4 yearsEstimated total maximum value of purchases throughout the duration of the framework agreement: £136,000,000Parties entitled to call-off from the framework: any local authority or public body in the United Kingdom
5. V.2.4 V.2.4
Initial estimated total Total value of the contract/lot: £42,000,000Total contract: £244,000,000.Note that, although the overall value of the contract/lot: £42,000,000 Services Limb (£190M) and the Framework Limb (£136M) is £326M, the Potentially Transferring Hosted Contracts cannot be delivered under both limbs. Should they be delivered under the Framework Limb, they will cease to be delivered under the Services Limb. The total for the Potentially Transferring Hosted Contracts (£82M) has therefore been deducted from the total of £326M to avoid double counting of the Potentially Transferring Hosted Contracts.
CPV Codes
- 85000000 - Health and social work services
Other Information
The changes noted above reflect the Council’s intentions for this procurement, which were omitted from the drafting of the original contract award notice. In particular: - the value of the Services Limb (as reflected in the procurement documents and underlying third party contracts) is £190,000,000, rather than the figure of £42,000,000 included at sections II.1.7 and V.2.4 of the original contract award notice; and- in addition to this, the Council intended that sufficient "headroom" (£136,000,000) be made available in order that other public bodies can make use of the Framework and that the Potentially Transferring Hosted Contracts can be delivered under the Framework. Without this financial headroom, the Framework Limb would have had no effect. The £82,000,000 allocated to the Framework Limb in respect of the Potentially Transferring Hosted Contracts is not "new business", but existing services valued under the Services Limb that (potentially) could transfer to the Framework Limb.The procurement documents were clear that the Council was procuring a framework agreement capable of being used by other public bodies. However, as noted above, a specific value for Framework Limb was not included in the original contract award notice; and the contract award notice did not include an explicit reference to third party access to the Framework. The procurement documents also made clear that the Framework was to be accessible by any local authority or public body in the United Kingdom, but this was not expressed in IV.1.3 of the original contract award notice.This Corrigendum rectifies these deficiencies in the original contract award notice.
Reference
- FTS 085107-2025