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The Health Care Services (Provider Selection Regime) Regulations 2023

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Modification of contracts and framework agreements during their term

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13.—(1) Subject to paragraph (3), a contract or framework agreement for relevant health care services may be modified during its term without following a new procurement process under these Regulations only where—

(a)the modification is clearly and unambiguously provided for in the contract or framework agreement documents,

(b)the modification is solely a change in the identity of the provider due to succession into the position of provider following corporate changes including takeover, merger, acquisition or insolvency and the relevant authority is satisfied that the provider meets the basic selection criteria,

(c)the modification is made in response to external factors beyond the control of the relevant authority and the provider including, but not limited to—

(i)changes in patient or service user volume, or

(ii)changes in prices in accordance with a formula provided for in the contract documents,

and the modification does not render the contract or framework agreement materially different in character, or

(d)the modification is attributable to a decision of the relevant authority and both of the criteria in paragraph (2) are met.

(2) The criteria are—

(a)the modification does not render the contract or framework agreement materially different in character, and

(b)the cumulative change in the lifetime value of the contract or framework agreement since it was entered into or concluded is—

(i)below £500,000; or

(ii)less than 25% of the lifetime value of the original contract or framework agreement when it was entered into or concluded.

(3) Where Direct Award Process A or Direct Award Process B was followed for the original award of a contract, the contract may be modified during its term without following a new procurement process under these Regulations where the modification does not render the contract materially different in character.

(4) Where—

(a)a modification is made to a contract or framework agreement without following a new procurement process, in accordance with paragraph (1) or (3),

(b)the modification is attributable to a decision of the relevant authority, and

(c)the cumulative change in the lifetime value of the contract since it was entered into, or framework agreement since it was concluded, is £500,000 or more,

the relevant authority must submit a notice of the modification for publication on the UK e-notification service.

(5) The notice in paragraph (4) must—

(a)be submitted for publication within 30 days of the modification of the contract or framework agreement, and

(b)include the information set out in Schedule 12.

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