Public procurement notice: Voluntary Ex Ante Transparency Notice
Published: 2020-12-04
Buyer: Clarion Housing Group
Country: UK
Contract type: Services
Procedure: Contract award without prior publication
CPV classification: 48451000 | 72212451
Estimated value: 17274089 GBP

Technical requirements: Clarion Housing Group is placing this voluntary transparency notice to alert economic operators of its intention to modify the Network NI contract in accordance with Regulation 72 (1) (c) of the Public Contracts Regulations 2015. It is intended that this modification will extend the current contract to accommodate completion of the contract requirements. This transparency notice does not place any obligation on the authority to enter into this modification.
Clarion Housing Group is placing this voluntary transparency notice to alert economic operators of its intention to modify the Enterprise Resource Planning (‘ERP’) Solution and System Integrator contract in accordance with Regulation 72 (1) (c) of the Public Contracts Regulations 2015. It is intended that this modification will extend the current contract to accommodate completion of the contract requirements. This transparency notice does not place any obligation on the authority to enter into this modification.
In April 2015 Clarion Housing Group (at the time Affinity Sutton) awarded the ‘Enterprise Resource Planning (‘ERP’) Solution and System Integrator’ contract to Hitachi Solutions Europe Ltd (‘Hitachi’). The total value of the contract as per the Contract Award Notice (dated: 6 November 2016) was GBP 17 274 089 over the contract period.
The term of the contract was stated in the published OJEU notices as a 5-year agreement. The contract itself provided that it commenced until completion of the requirements under the contract. The contract was novated to Clarion Housing Group following the merger of Affinity Sutton and Circle Housing (the Merger).
Regulation 72 provides that contracts may be modified without a new procurement procedure in any of a number of cases, including under Reg 72 (c) where all of the following conditions are fulfilled:
(i) the need for modification has been brought about by circumstances which a diligent contracting authority could not have foreseen;
In accordance with the above Regulation Clarion Housing Group are extending the contract to cover the completion of the contract requirements, which incurs an increase in the contract cost. This is valid based on:
The Merger increased the complexity of the contractual requirements due to the additional systems that required update and transformation, and this resulted in increased costs and a delay to delivery.
The extension and additional monies are to ensure that the contractual requirements are met. Within the OJEU Notices Clarion Housing Group procured an SI partner whose duties ‘involve but (are) not be limited to the planning, design, implementation and integration of the ERP system, together with support and maintenance once the ERP system is implemented.’
Under the planning and design requirement, the original contract awarded established that the ERP system requires a repairs module, and as such this will be designed, implemented and integrated under the contract as originally intended at the point of award.
Please note that for this aspect Clarion Housing Group can also rely on the modification provisions of 72(1)(b) due to the near technical impossibility for another economic operator to achieve the required performance within the time permitted; and the necessity to use its specific know-how, tools and means which only Hitachi have at their disposal.
The contract award notice stated that the total contract value was GBP 17 274 089 over the contract period. The above changes and modifications will incur additional time and cost, but the resultant contract value will not exceed GBP 25 911 135, which is 50 % of the value of the original contract.
The date shown in this voluntary transparency notice section V.2.1) is defaulted at the date Clarion Housing Group issued the notice to the journal. However this date is not the date for conclusion of contract, the proposed date for the modification would be 15 December 2020 if Clarion Housing Group proceeds as intended.
To view this notice, please click here: https://clarion.delta-esourcing.com/delta/viewNotice.html?noticeId=548812559
The Public Contract Regulations 2015 provide for aggrieved parties who have been harmed or are at risk of harm by a breach of the rules to take action in the High Court (England, Wales and Northern Ireland). Clarion Housing Group incorporated a standstill period before this contract was awarded.


Winner: Hitachi Solutions Europe Ltd
Award value: 17274089