Stray Dog Collection Service (value correction)

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Description

Procurement Value Correction Record (Post Award) Near Threshold Case - Procurement Act 2023 Procurement reference: 26026 Contract title: Stray Dog Collection Service Contracting authority: DMBC Procurement classification: Regulated procurement (services) Procedure used: Open Procedure Contract award date: 25 March 2026 Correction record date: 17 April 2026 Background: The contract for Stray Dog Collection Service was awarded on 25 March 2026 following a competitive below threshold procurement conducted under the Procurement Act 2023. The estimated contract value was stated as £ 197,517.50 (excluding VAT), marginally below the applicable services threshold. The contract provides for an initial 2-year term and includes a discretionary 2-year extension. Description of error: An error was identified in relation to the contract value recorded at award. The value of the winning bidder's submission was mistakenly treated as inclusive of VAT, when in fact the submitted price was exclusive of VAT. As a result, the initially recorded contract value understated the correct total contract value once VAT was applied. The issue was identified by the Procurement Officer and immediately escalated to Legal Services and Finance for assessment. The error arose following an amendment to the price schedule during the tender stage, which led to prices being submitted without VAT The price was assumed to be inclusive of VAT, whereas bidder's final submissions were exclusive of VAT. This misunderstanding led to the incorrect recording of the contract value. The error was entirely unintentional and arose from an administrative misinterpretation of the submission values. The error was identified after formal contract acceptance during a subsequent review of the contract value. The issue was identified by a Senior Category Manager. Once corrected to include VAT, the contract value increased and exceeded the relevant procurement threshold. Corrected estimated contract value; In accordance with the Procurement Act 2023, which requires that estimated contract value includes all contractual options and extensions, the contract value has been recalculated as follows: • Initial term 2 years: £117,021 • Optional extension 2 years: £120,000 The corrected estimated contract value is therefore £237,021 (including VAT) . The corrected figure places the contract more clearly above the services threshold applicable at the time of procurement. A review was undertaken to assess whether the corrected contract value had any impact on the procurement approach adopted, the level of competition achieved, or the outcome of the evaluation. The review confirmed that the procurement was run in accordance with principles and processes equivalent to those that would have applied had the corrected value been understood at the point of award. It also confirmed that the outcome of the competition would not have changed. Following the review, the Associate Procurement Director determined that no further procurement action is required, as the correction does not affect the integrity of the process or the award decision. Contract and financial records have been updated to reflect the corrected contract value, and the original value will not be relied upon for any future variations or extensions.

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