Voluntary Transparency Notice (VTN) for Civil Service learning and development contract modification CCZP20A03

This VTN sets out the Cabinet Office's intention to amend its contract dated 2 October 2020 with Ernst & Young LLP for the delivery of learning and development services. The term of the contract will be extended by 12 months, such that the new expiry date will be 4 October 2025, and the maximum value of the contract will be increased by 50% from £130,000,000 (ex. VAT) to £195,000,000 (ex. VAT). The Cabinet Office intends to observe a voluntary standstill and will not conclude these contract amendments before Tuesday 7th May 2024. No other changes will be made to the contract. The Cabinet Office also intends to amend a separate, but related, contract for the delivery of learning and development services with KPMG LLP as set out in a separate VTN issued on the same date.

The Cabinet Office considers that the amendments set out in this VTN are permitted pursuant to Regulation 72(1)(b) of the Public Contracts Regulations 2015 (PCR), which permits the modification of contracts without a new procurement procedure in the following circumstances:

for additional works, services or supplies by the original contractor that have become necessary and were not included in the initial procurement, where a change of contractor-

(i) cannot be made for economic or technical reasons such as requirements of interchangeability or interoperability with existing equipment, services or installations procured under the initial procurement, and

(ii) would cause significant inconvenience or substantial duplication of costs for the contracting authority,

provided that any increase in price does not exceed 50% of the value of the original contract.

The Cabinet Office is preparing to conduct a new procurement exercise for replacement learning and development services beyond October 2025. Following the publication of the prior information notice with reference 2022/S 000-032585 by Crown Commercial Service on 17 November 2022, various market engagement events took place between March 2023 and November 2023. A new procurement exercise for replacement learning and development services is expected to formally commence during Summer 2024, and the Cabinet Office intends to issue a new prior information notice in respect of that procurement in the near future.

As set out above, these are permitted modifications under the PCR, but, in the event that either of the modifications are deemed not to be a permitted modification under the PCR, then this notice should be treated as providing the requisite notice of the Cabinet Office's intention to make a contract award.