Public procurement notice: Contract Award Notice
Published: 2016-02-26
Buyer: Post Office Limited
Country: UK
Region: UNITED KINGDOM
Contract type: Services
Procedure: Contract award without prior publication
CPV classification: 32000000 | 72000000
Estimated value: 400000000 GBP
Award criteria: The most economic tender

Technical requirements: Υπηρεσίες τεχνολογίας των πληροφοριών: παροχή συμβουλών, ανάπτυξη λογισμικού, Διαδίκτυο και υποστήριξη
This Notice relates to a Modification to a Contract in accordance with Article 72 of Directive 2014/24/EU of the European Parliament and of the Council and more specifically, Regulation 72(1)(b) of the Public Contracts Regulations 2015. The contract modification addressed by this Notice is for the provision of additional application and service management, maintenance, development and support services under an existing software and IT services agreement relating to Point of Sale/Service (‘POS’) customer facing transactions across multiple channels. The duration of the contract is increased by five (5) years. Further information about the modification is provided in VI.3). A Modification Notice has been issued.
This Notice relates to a Modification to a Contract in accordance with Article 72 of Directive 2014/24/EU of the European Parliament and of the Council and more specifically, Regulation 72(1)(b) of the Public Contracts Regulations 2015. The contract modification addressed by this Notice is for the provision of additional [application and service management, maintenance, development and support] services under an existing software and IT services agreement relating to Point of Sale/Service (‘POS’) customer facing transactions across multiple channels. The duration of the contract is increased by five (5) years. Further information about the modification is provided in VI.3).
This Notice does not relate to the award of a new contract but to a modification of an existing contract. The modification has been necessary due to reasons set out in Section VI of this Notice. The Authority's existing POS system is highly complex and comprises both retail and banking transactions with a significant amount of interfaces. The services cannot for economic and technical reasons be provided by a contractor other than the original contractor because of the specific interoperability requirements and the highly complex nature of the existing infrastructure and the Authority's business model and operating procedures. A change of contractor would oblige the Authority to acquire services having different technical characteristics which would result in disproportionate technical difficulties in operation and maintenance and carries a significant technical integration and interoperability risk. Awarding the contract to a different contractor would also cause significant inconvenience in terms of service delivery, reliability and continuity of service and would materially compromise the Authority's ability, operationally, to provide Post Office counter services. Introducing a separate third party would result in a substantial duplication of costs associated with the build and run of an entirely new system which would result in poor value for money.
In summary, a change of contractor cannot be made for technical or economic reasons and would cause substantial inconvenience or duplication of costs for the Authority in accordance with Regulation 72(1)(b) of the Public Contracts Regulations 2015. The increase in price as a result of the modified contract is less than 50 % of the original contract value.
Reasons for the modification-The Authority's existing POS system is highly complex. The services cannot for economic and technical reasons be provided by a contractor other than the original contractor because of the specific interoperability requirements and the highly complex nature of the existing infrastructure and the Authority's business model and operating procedures. A change of contractor would oblige the Authority to acquire service shaving different technical characteristics which would result in disproportionate technical difficulties in operation and maintenance and carries a significant technical integration and interoperability risk. Awarding the contract to a different contractor would also cause significant inconvenience in terms of service delivery, reliability and continuity of service. The estimated value is 140 000 000 GBP-400 000 000 GBP.


Award value: 400000000
Number of bids: 1