NHSScotland Frameworks Scotland 3

The extension is required due to the current uncertainty around capital funding within NHSScotland which has continued through 2024.

With a number of projects already paused or cancelled, the future pipeline beyond the one-year Scottish Government Budget in December 2024 will not be known. Therefore, with such future pipeline uncertainty, it is not possible to go to the market to procure a replacement for Frameworks Scotland 3 at this time as the arrangement may not support delivery of the type / scale / complexity of projects to be delivered.

The procurement strategy for the successor arrangement is in development, however at present the strategy is being developed on the basis of the future pipeline scenarios. It is anticipated, that by extending Frameworks Scotland 3 by up to a maximum period for 24 months, this will enable greater clarity around future pipeline and service needs. This should enable the future project delivery model and associated future procurement to be able to deliver the future NHSScotland Capital Programme. Should the current position change in the short term, then the procurement of the successor arrangement will commence. The new successor arrangement will be used for capital project delivery immediately following award which may be prior to expiry of the proposed extension to Frameworks Scotland 3.

Due to the cancellation and pausing of projects over the last 9-12 months, combined with the reduction in activity during the pandemic between 2020-2022, the anticipated spend through Frameworks Scotland 3 has been significantly below the stated contract value within the published Contract Notice. Therefore any future call-off from the framework during the 24-month extension period, should not exceed the

original value in the Contract Notice. Furthermore, it is anticipated that the volume of activity will be limited by the current capital constraints.

The justification for the framework extension shall be on the basis of Regulation 72 (1) (c).

This notice is intended to notify the market of the intention to issue a modification for the contract under Regulation 72 (1) (c).

The date in section V.2.1 is the date of award of the original Framework Agreement. The Modification of the Framework Agreement will now be entered following the previously issued VEAT notice.