PART 3Award and modification of public service contracts
Modifying a public service contract21.
(1)
A competent authority may modify a public service contract if the modification—
(a)
is a permitted modification under Schedule 1,
(b)
is not a substantial modification, or
(c)
is a below-threshold modification.
(2)
A “substantial modification” is a modification which would—
(a)
materially change the scope of the public service contract, or
(b)
materially change the economic balance of the public service contract in favour of the operator.
(3)
A modification is a “below-threshold modification” if—
(a)
the modification would not, either itself or when aggregated with any previous below-threshold modification or modifications, increase or decrease the estimated value of the public service contract by more than 10%, and
(b)
the modification would not materially change the scope of the public service contract.
(4)
In this regulation, a reference to a modification changing the scope of a public service contract is a reference to a modification providing for the provision of services of a kind not already provided for in the contract.
(5)
Paragraph (6) applies if, on modifying a public service contract under this regulation, the competent authority considers that—
(a)
the modification could reasonably have been made together with another modification made to the public service contract under this regulation, and
(b)
that single modification would not have been permitted under paragraph (1) of this regulation.
(6)
The modification is to be treated as not within paragraph (1) of this regulation.
(7)
Except as provided for in paragraph 8 of Schedule 1 (transfer on corporate restructuring), a competent authority may not modify a public service contract so as to change the operator.