Interim Delivery Model (IDM) – WH:SHF and WH:LG

The Department for Energy Security and Net Zero ("DESNZ") is publishing this voluntary transparency notice to alert economic operators of its intention to vary the Technical Assistance Facility 2 (TAF 2) contract (con_5585) with Turner & Townsend Consulting Ltd (T&T). The variation will enable T&T to provide Interim Delivery Model (IDM) services, addressing a gap in service for grant recipients within the Warm Homes: Local Grants (WH:LG) and Warm Homes: Social Housing Fund (WH:SHF) schemes due to unforeseen delays in procuring the wider Delivery Partner 2 (DP2).

The variation will commence following a period of 30 days from the date of publication of this notice. DESNZ informs the market that the relevant modifications (as described below) are justified on the basis that they are in compliance with Public Contracts Regulations 2015 (PCR) pursuant to Regulation 72(1)(b).

Please note that the value and duration of this variation is indicative at time of publishing and subject to amendment up to the expiry of this notice. Unforeseen delays to the procurement of Delivery Partner 2 (PIN Notice identifier: 2024/S 000-028336) have resulted in a gap in service coverage for Grant Recipients (GRs) of the Warm Homes: Local Grants (WH:LG) and Warm Homes: Social Housing Fund schemes.

The schemes will collectively issue £1.8bn of grant funding; the Authority cannot permit those funds to be issued to grant recipients in the first year of delivery without adequate support and oversight to ensure value for money, adherence to grant issuing conditions and mitigation of the risk of fraud and error. The service gap for in-delivery support between the respective schemes launches (April 2025) and the award and mobilisation of DP2 (TBC – indicative date of early 2026) must be addressed.

DESNZ therefore requires a variation to be made to the TAF 2 contract to enable Turner & Townsend to address that service gap via an Interim Delivery Model (IDM). The contract variation is required to enable the provision of an estimated 10 months of interim delivery support from the 2nd of June 2025, until a potential DP2 supplier is awarded and mobilised (TBC - indicative date of early 2026). This contract variation is justified under regulation 72(1)(b) of the Public Contracts Regulations 2015 (PCR 2015) on the basis that: • The additional works have become necessary and were not included in the initial procurement. • A change in contractor cannot be made for economic or technical reasons. • A change in contractor would cause significant inconvenience or substantial duplication of costs for the Contracting Authority, and the value of the modification does not exceed 50% of the original contract value.