Public procurement notice: Voluntary Ex Ante Transparency Notice
Published: 2019-03-06
Buyer: Education Authority
Country: UK
Contract type: Services
Procedure: Contract award without prior publication
CPV classification: 72263000: Software implementation services
Estimated value: 90000000 GBP
Award criteria: The most economic tender

Technical requirements: The Contracting Authority requires ICT services to replace its existing contracts for managed local area network services for post primary and special schools in Northern Ireland (known as “lot 3”) and managed Wide Area Network Services for all Northern Ireland schools (known as "Lot 5"), together with the re-procurement of the management information system for all schools in Northern Ireland.
The services required pursuant to this procurement process are to take forward the service vision, by ensuring the continuity of existing services, covered in broad terms by the existing contracts, while transforming these services over the lifetime of the new contract term.
The Contracting Authority requires ICT services to replace its existing contracts for managed local area network services for post primary and special schools in Northern Ireland (known as “lot 3") and managed wide area network services for all Northern Ireland schools (known as “Lot 5"), together with the re-procurement of the management information system for all schools in Northern Ireland.
The services required pursuant to this procurement process are to take forward the service vision, by ensuring the continuity of existing services, covered in broad terms by the existing contracts, while transforming these services over the lifetime of the new contract term.
The contract was extended by 2 years until 31.3.2019 in accordance with the contract(6.3.2012) and CCN (31.3.2017). It was expected that a replacement system would be procured by 31.3.2019. As below, this has not proved possible. A further 2 years is required with a possible further 1 year to allow a transition/handover period.
The modification value is circa. 59 700 000 GBP based upon a 2 year extension. Should a further 1 year be required, a 3 year extension would be approximately 80 000 000 GBP-90 000 000 GBP. The term is the only amendment.
Due to the Public Sector Shared Services Programme, Education Authority (“EA”) is duty-bound to consider shared services. Northern Ireland Public Shared Services Network (“NIPSSN”) therefore had to be considered.
To de-risk NIPSSN, C2K, owing to its size and complexity, was deferred to Phase 2 (scheduled to commence autumn 2019). Roll out to C2K cannot be achieved until 31.3.2021 however continued ICT is necessary in the interim. EA is finalising a procurement exercise to replace the existing agreement (to commence 1.4.2021). An early market engagement exercise has already commenced.
The proposed extension is permitted by Regulation72(1)(b) of PCR2015. As explained herein, additional services over a period of 2 years, with a possible extension of a further 1 year transition/handover period, have become necessary.
(i) cannot be made for economic and technical reasons given the complex transitional requirements and need to ensure continued system delivery which is vital to C2K’s functionality. The incumbent contractor owns the IPR’s for the portal and developed it to integrate the full portfolio of local, data-centre and cloud services for 350 000+ students and staff on a 24/7/365 basis. The software licence is tied into the current agreement and will take considerable time to replace whilst sustaining system functionality. Procuring a new system now and switching to NISSPN in 2 years isn’t possible as the system and licences are not readily interchangeable or interoperable. Any attempt to transfer systems without an adequate transition period poses an unjustifiable risk of total network failure, which it has never experienced in its lifespan. The disruption for 350 000 + users twice in 2-3 years would create risk to stability and integrity of services and be unsettling for schools and stakeholders, knowing that another transition was imminent in 2021; and
(ii) would cause significant inconvenience and duplication of costs. Critical elements of the network are the incumbent’s IPR, having been developed over 25 years, with elements bespoke to NI with particular child protection focus. The infrastructure needed to support the new contract present substantial challenges to other suppliers in the interim. The complex system and integration requirements with NIPSSN in 03/2021 make it impractical to introduce a new contractor now. Otherwise EA would suffer a difficult transition, followed by a further transition 2 years later, both of which would cause significant inconvenience to everyone involved. Financially, any potential new contractor would have significant initiation/start-up and due-diligence costs in attempting to recreate the current service for 2-3 years which is very short compared to the normal lifetime of such a contract, representing poor VFM, compared to extending the contract.


Winner: Capita Managed IT Solutions
Award value: 90000000