Contract Variation Memo

Contract Variation Memo

[This Memo is to be used for the approval of a "variation". A "variation" is defined as any variation in contract spend that increases the total contract value or estimated contract value recorded on Tenders WA at the point of award of the contract. The Memo is also to be used for the approval of extending a contract beyond term including when the extension beyond term does not fit the definition of a "variation" ie where there is no increase in the total contract value. Refer to the SSC Buyer Alert June 2016 - Extending Contracts Beyond Term]

Current Contract Details
Public Authority
Contract Number
Contract Title
Contractor(s)
Contract Commencement Date
Contract Term / [Insert initial term and extension options eg. 3 + 1 + 1 years]
Beyond Term Extensions Previously Approved (if applicable)
[For each extension beyond term, insert the term (including options), when the term was approved and by whom. Insert extra rows if required] / Term (incl. options) / Date Approved / Approver
Current Approved Expiry Date / [Insert the final expiry date based on all approved terms and extension options]
Contract Value at Award / $
Value of Variations Previously Approved (if applicable)
[For each variation, insert the value, when the variation was approved and by whom. Insert extra rows if required] / Value / Date Approved / Approver
$
$
Current Approved Contract Value / $[The sum of the contract value at award and all approved variations]
Total Contract Expenditure to Date / $[Insert value] as of[Insert date]
Proposed Contract Variation and/or Extension Beyond Term
Proposed Beyond Term Extension (if applicable) / [Insert initial term and extension options eg. 1 + 1 year] [or] Not applicable
Proposed New Expiry Date (if applicable) / [Insert date] [or] Not applicable
Value of Proposed Variation / $
New Approved Contract Value / $[The sum of the Current Approved Contract Value, as above and the Value of Proposed Variation]
Summarise the Key Reasons and/or Basis for this Proposed Variation and/or Extension Beyond Term
[Provide brief details about how the contract was established (public tender, restricted tender, under a CUA etc) and the agency business need that it meets.]
[Comment on whether this variation and/or extension beyond term is expected to meet all outstanding agency requirements, and how the agency proposes to mitigate/manage the need to approve further variations and/or extensions beyond term.]
[Include some information about the current market situation and a statement outlining the risks of NOT going to market.]
[Include a final statement that outlines what will be the impact on the public authority's operations if the variation is not approved]
Submitting Officer
[Submitting Officer to have appropriate internal authorisation to submit the variation]
Name
Title
Contact Number
Signature:
______/ Date:
____/____/______

[A public authority must involve the Department of Finance, Government Procurement (GP) if the total estimated value of the “variation” (either individually or cumulatively) is $250,000 or above (GST inclusive). Please note, for some public authorities this value may be higher, depending on the terms of their Partial Exemption under the State Supply Commission Act.]

[Where the total estimated value of the “variation” (either individually or cumulatively) is
$5 million or more then the “variation” must be referred to the State Tender Review Committee (STRC) as required by the Procurement Planning, Evaluation Reports and Contract Management policy.]

[According to the value of the “variation” (either individually or cumulatively), include ONLY ONE of the following tables (Review by the Department of Finance, GP OR Review by the STRC).TheMemois to be forwarded to (for review by either GP or STRC) for review prior to being referred to the public authority’s Accountable Authority for approval and recording on Tenders WA.]

Review by the Department of Finance, Government Procurement
Name
Title
Contact Number
Supported
Not Supported / Comments:
Signature:
______ / Date:
____/____/______

[OR]

Review by the State Tender Review Committee
Noted / Date of Meeting: ____/____/______
Comments:
Approval by the Accountable Authority or Delegate
Name
Title
Approved
Not Approved / Comments:
Signature:
______/ Date:
____/____/______
Variation Recorded on Tenders WA
Yes / No
Date Recorded:
____/____/______/ Reason:

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