Public procurement notice: Modification Of A Contract/Concession During Its Term
Published: 2018-08-22
Buyer: Department for Work and Pensions
Country: UK
Contract type: Services
CPV classification: 72223000: Information technology requirements review services

Technical requirements: The Supplier currently provides managed IT services to the Authority under a contract dated 9.6.2014 with an operational services commencement date of 1.3.2015 and due to expire on 29.2.2020. The Contract supports the Authority’s separate contract for health and disability assessment services (the HDAS contract) for a range of social security benefits (including employment and support allowance, Universal Credit and other benefits).
1) Register on the eSourcing portal (this is only required once): https://dwp.bravosolution.co.uk and click the link to register
— Click the 'PQQs / ITTs Open To All Suppliers' link. (These are Pre-Qualification Questionnaires or Invitations to Tender open to any registered supplier),
— This will move the PQQ /ITT into your 'My PQQs/ My ITTs' page. (A secure area reserved for your projects only),
— Click 'My Response' under 'PQQ/ ITT Details', you can choose to 'Create Response' or to 'Decline to Respond' (please give a reason if declining),
(iii) to not award any contract as a result of the procurement process commenced by publication of this notice;
The Supplier currently provides managed IT services to the Authority under a contract awarded on 9.6.2014 which commenced on 1.3.2015. The Contract includes a unilateral option to extend by up to two further 1 year periods. The final extension, if exercised, shall expire on 28.2.2022. The Contract supports the Authority’s separate contract for health and disability assessment services (the HDAS contract) for a range of social security benefits (including employment and support allowance, Universal Credit and other benefits).
The Authority is now planning to transition the IT services under the Contract to a successor IT system. Whilst the Authority is actively taking steps to transition to a successor IT system, it has modified the contract to:
a) Implement additional upgrade projects which are necessary to safeguard the stability of the underlying systems and infrastructure that enable the provision of the IT services during the Contract term (the “Additional Projects”); and
b) Include a unilateral option to extend the Contract by up to 2 further 1 year extensions (the final extension, if exercised, to expire on 28.2.2022)(the “Optional Extension Rights”) in order to safeguard the continued delivery of the IT services and support the transitioning of the current IT services to a successor IT system.
The Additional Projects and Optional Extension Rights (together the “Amendments”) are necessary to minimise the otherwise unacceptable level of risks of service transition and delivery failure of the Contract which are critical to the administration of the HDAS Contract and the Authority’s compliance with its statutory duties in relation to the administration of benefits under the HDAS Contract.
For the reasons set out below VII.2.2 the Authority considers the Amendments are permitted under the Public Contracts Regulations 2015 (as amended) (the PCR) and in accordance with Regulation 99(3) of the PCR, the Authority published a voluntary transparency notice.
The initial value of the Contract in year 1 was estimated to be approximately 10 000 000 GBP plus any additional costs of change (i.e. the actual year 1 costs). The value of the Contract in subsequent years was to be determined based on the actual year 1 costs. The overall value of the Contract consisting of the original Contract term and the Amendments is estimated to be 89 250 000 GBP. The increase in price arising out of the Optional Extension Rights does not exceed 50 % of the value of the original Contract.
The Authority is now planning to transition the IT services under the Contract to a successor IT system. Whilst the Authority is actively taking steps to transition to a successor IT system, it modified the Contract to:
a) Implement additional upgrade projects which are necessary to safeguard the stability of the underlying systems and infrastructure that enable the provision of the IT services during the contract term (the "Additional Projects") in order to safeguard the continued delivery of the IT services and support the planning for the transitioning of the current IT services to a successor


Winner: Atos IT Services UK Limited