Industrial Action provisions

The Government Property Agency ("GPA") has agreed to provide additional funding to the Supplier to recognise their increased costs of supplying services under the Contract. These increased costs have resulted from the settlement of ongoing industrial action with one or more Trade Unions.

The contract values published in this notice are based on current knowledge and do not account for future settlements. The Government Property Agency ("GPA") has agreed to provide additional funding to the Supplier to recognise their increased costs of supplying services under the Contract.

These increased costs have resulted from the settlement of ongoing industrial action with one or more Trade Unions, as part of which the Supplier has agreed to provide the following to their staff deployed on the Contract based at 3-8/55 Whitehall: Minimum pay rate of £14.00 per hour in London effective 1st November 2024 for Soft FM. Minimum pay rate of £14.25 per hour in London effective 1st November 2024 for Security.

A differential uplift will be applied to all current rates above the minimum rate effective 1st November 2024 ranging between 4% - 6%. A non-consolidated payment of £400.00 Annual Leave Entitlement shall increase from 1st July 2025 as follows: 0-3 years' service: 25 days plus bank holidays 3-5 years' service: 27 days plus bank holidays 5+ years' service: 28 days plus bank holidays Full sick pay will be paid from Day One (no "waiting days") for a maximum of 35 days in a rolling 12-month period with effect from 1st July 2025.

The following Family Friendly Policies shall be provided: Maternity Leave and Pay, Paternity Leave and Pay, Adoption & Surrogacy Leave and Pay, Shared Parental Leave and Pay, Ante-natal Leave and Pay, Special Disability-Related Leave and Pay, Bereavement Leave. GPA intends to modify the Contract to provide for payment of this contribution through various amendments to Call-Off Schedule 5 (Call-Off Pricing) and Joint Schedule 1 (Definitions).

The GPA intends to modify the Contract without a new procurement procedure in accordance with Regulation 72(1)(c) of the Public Contracts Regulations 2015, on the basis that all of the following conditions are fulfilled: The need to provide additional funding to the Supplier has been brought about by circumstances which GPA, acting diligently, could not have foreseen. GPA took deliberate steps to minimise the risk of industrial action when developing the Contract, namely requiring payment of the Real Living Wage and allowing for inflationary increase on each anniversary aligned to CPI.

All tenders were reviewed for potential Abnormally Low Tender issues to ensure that the prices submitted would be sustainable for the duration of the term. Consequently, the GPA could not have reasonably foreseen the current pressures on suppliers from trade unions.

The provision of additional funding does not alter the overall nature of the Contract: the nature of the Contract (including the scope of services) remains as described in the original procurement. The increase in price does not exceed 50% of the value of the original Contract: The original value of the Contract, as stated in the Contract Award Notice was £50,000,000. The estimated value of the additional funding being provided to the Supplier over the term of the Contract is £625,000 (i.e. 1.25% of the value of the original Contract and therefore below the 50% threshold).