Public procurement notice: Voluntary Ex Ante Transparency Notice
Published: 2020-02-17
Buyer: Ørsted Salg and Service A/S
Country: DK
Contract type: Services
Procedure: Negotiated without a prior call for competition
CPV classification: 72228000: Equipment integration consultancy services | 72253000: Helpdesk and support services | 72253200: Computer systems support services | 72267000: Software maintenance and repair services | 72268000: Software supply services
Estimated value: 9277787 DKK

Technical requirements: DCS-system and Fire and Gas Safety-System for Oil and Gas Treatment and Pipeline Facilities at Ørsted sites in Nybro and Filsø
Ørsted Salg and Service A/S intends to award a contract to Honeywell AB without prior publication of a contract notice. The contract covers service and maintenance of DCS-system and fire and gas (F&G) safety-system for monitoring and controlling oil and gas treatment plants and pipeline facilities at Ørsted sites in Nybro and Filsø. Honeywell AB is the current supplier.
The system is comprised of a highly complex DCS-system and a fire and gas safety system (software and hardware), redundant network across both sites, servers and hardware, i.e. controllers housed in purpose build buildings providing close 2-way integration with measuring equipment, sensors, valves, etc. The entire system is closely integrated with third party systems.
The entire system has a very high availability of close to 100 %. The DCS and F&G safety systems are critical to the continued safe and reliable operation of the oil and gas treatment facilities.
The contract covers service and maintenance of software, i.e. error corrections, security patchings, modifications and updates of the systems, telephone support and regular maintenance site visits. The contract includes spare part management of critical infrastructure components (e.g. controllers). The contract also includes updating of system documentation. The term of the contract is 5 years with an option to extend the contract for 2 years.
Ørsted Salg and Service A/S intends to award contract to Honeywell AB without prior publication of a contract notice due to the following reasons:
Ørsted Salg and Service A/S does not hold any intellectual property rights to the DCS and F&G safety systems system or their code. These rights exclusively belong to Honeywell AB. Honeywell AB does not licence third party suppliers to service and maintain and update the systems. Thus, a public procurement procedure concerning service and maintenance, etc. of the existing systems would violate exclusive property rights of Honeywell AB. The contract covers service and maintenance of software, i.e. error corrections, security patchings, modifications and updates of the systems, telephone support and regular maintenance site visits. The contract includes spare part management of critical infrastructure components (e.g. controllers). The contract also includes updating of system documentation. This can only be done by the original supplier, Honeywell AB.
The facilities are high risk facilities critical to national oil and gas infrastructure and energy supply as the entire Danish production of oil and gas is transported and partly treated at the facilities making a high level of risk management, QA, testing, etc. mandatory.
Introducing an entirely new DCS and F&G safety-systems, including software, network, servers, hardware (e.g. controllers) would require the facilities at Nybro and Filsø to be taken out of service. An analysis has been carried out by an independent outside consultant (RAMBØLL A/S) which has shown that the facilities would have to be taken out of service for an estimated period of 13-22 months to complete necessary testing of the system. If targeted and extraordinary measures were taken, this could be reduced to 6-12 months, however this would greatly increase costs. Taking the facilities out of service for a period of 6-22 months (depending on the measures taken) would thus severely compromise national energy supply, other contractual obligations, etc.
The Honeywell DCS and F&G safety systems are critical to the continued safe and reliable operation of the oil and gas treatment facilities. Ørsted Salg and Service A/S depends on continued service and support from Honeywell for keeping the systems safe, reliable and cyber secure.
It is assessed that only the original supplier of the system, Honeywell AB, can deliver the services associated with the fulfilment of the current contract.
DCS-system and Fire and Gas Safety-System for Oil and Gas Treatment and Pipeline Facilities at Ørsted Sites in Nybro and Filsø
If the contracting authority/entity has followed the procedure in section 4 in Act on the Danish Complaints Board for Public Procurement (lov om Klagenævnet for Udbud), a complaint that the contracting authority/entity has awarded a contract in violation of the Public Procurement Directive (Directive 2014/24/EU) or the Utilities Directive (Directive 2014/25/EU) shall be brought before the Complaints Board for Public Procurement (the Complaints Board) within 30 calendar days counting from the day after that the contracting authority/entity has published a contract award notice in the Official Journal of the European Union (OJEU).
Link to review procedure (in Danish, but with guidelines in English): https://naevneneshus.dk/start-din-klage/klagenaevnet-for-udbud/


Winner: Honeywell AB
Award value: 9277787