Public procurement notice: Contract Notice
Published: 2021-09-03
Buyer: Landsvirkjun
Country: IS
Contract type: Services
Procedure: Competitive dialogue
CPV classification: 72222300: Information technology services | 72227000: Software integration consultancy services | 72246000 | 72254000: Software testing | 72254100: Systems testing services
Submission deadline: 2021-09-30
Award criteria: The most economic tender

Technical requirements: Landsvirkjun is the state-owned power company of Iceland, operating 18 power stations across the country (primarily hydropower and geothermal). As explained in a PIN published earlier this year (2021/S 134-3580500), Landsvirkjun is currently using Microsoft Dynamics AX 2009 as a business solution and has decided to upgrade to its successor: Microsoft Dynamics 365 Finance. The aforementioned PIN related to the supply of the Microsoft Dynamics 365 Finance system; this notice relates to the services required to implement that system. The “Implementation Partner” will support Landsvirkjun with: analysis and design; setup, development and integration; data migration; testing and training; and deployment. There will also be an option to provide ongoing support to the new system for a period of up to 5 years.
Landsvirkjun is Iceland’s largest electricity generator, with a focus on clean energy and business innovation in the energy sector. Given the critical role Landsvirkjun plays in Iceland’s infrastructure, it is vital that its IT systems are efficient, secure and up-to-date.
Landsvirkjun’s current ERP system is Microsoft Dynamics AX 2009. Mainstream support for this product ended in October 2018, with extended support coming to an end in April 2022. Landsvirkjun therefore need to procure a new ERP system which offers appropriate Microsoft support and improved functionality.
Following internal discussions and analysis, Landsvirkjun have decided to upgrade to Microsoft Dynamics 365 Finance (as well as some modules from Microsoft Dynamics 365 Supply Chain Management). Landsvirkjun have determined that no other solution on the market can meet its current requirements and that a move to an entirely new solution would involve significant additional cost and internal upheaval which cannot be justified from a business perspective. The procurement of a supplier of Microsoft Dynamics 365 Finance was commenced with the publication of PIN 2021/S 134-358050 on 14/07/2021.
Further details on the role of the Implementation Partner are set out in the Project Information Memorandum (“PIM”) accompanying this notice. In summary, the Implementation Partner will be expected to assist Landsvirkjun with the following main phases, to achieve a go-live date in Q4 of 2022:
Landsvirkjun’s ultimate aim is to guarantee the longevity, operability and security of its ICT systems. In order to achieve that aim, the Implementation Partner may be required to assist with supplementary or additional matters arising from or connected to the ERP system or Landsvirkjun’s broader ICT system. These additional matters will be subject to discussion on an ad-hoc basis. Furthermore, at the sole discretion of Landsvirkjun, the Implementation Partner contract may be extended for a period of up to 5 years in order to provide for support of the new system.
Prospective bidders should note that Landsvirkjun will require the successful Implementation Partner to deliver training and workshops in Iceland and that, to do so, Icelandic language skills will be required. Furthermore, although the procurement documents including, in the first instance the draft contract, will be in English, the specification will be written in Icelandic. The current intention is that the contract will be negotiated in English and then translated into Icelandic before final award. Accordingly, international organisations contemplating competing for this opportunity may wish to partner with, or secure support from, experienced local organisations.
Landsvirkjun have opted to run this procurement as a competitive dialogue in light of the technical nature of the services and the very real benefits of engaging directly with bidders through the course of the procurement process. Landsvirkjun will engage with bidders to gain insight into the proposed solutions and to ensure the contract is awarded in accordance with best practice as defined by the market.
At the discretion of Landsvirkjun, the contract may be extended to provide that the Implementation Partner also supports the new system for a period of up to 5 years.
No specific legal form is required at this stage. However, Landsvirkjun reserves the right to require the successful Implementation Partner to take a specific legal form and/or assume joint and several liability if bidding on a consortium/sub-contracting basis. This will be subject to discussion during the procurement process.
Interested parties should note that Landsvirkjun is using a dedicated procurement portal to manage this procurement process: https://utbod.landsvirkjun.is. All documentation will be made available on this portal. All communications by interested parties must be submitted through this portal - any communications sent by alternative means will be ignored.
Please note that a ‘request to participate’ for the purposes of this contract notice (in particular, Section IV.2.2) is by completion and return of the Pre-Qualification Questionnaire by the stated deadline. Interested parties should note that Landsvirkjun reserves the right to cancel or vary this procurement process at any point and will not be liable for any costs or expenses incurred by interested parties in responding to or participating in this opportunity.
Landsvirkjun also reserves the right not to award a contract to the lowest priced bidder or indeed to award any contract at all as a result of this procurement. Landsvirkjun may also change the basis, procedures and/or timescales set out or referred to within the procurement documents.
In relation to Section II.2.10, variant bids may be accepted by Landsvirkjun. However, this will only be in circumstances where the form and content of the variant has been approved by Landsvirkjun in advance.

Eligibility requirements: Details will be set out in the procurement documents.