Public procurement notice: Modification Of A Contract/Concession During Its Term
Published: 2019-09-09
Buyer: Department of Health and Social Care
Country: UK
Contract type: Services
CPV classification: 72000000

Technical requirements: Υπηρεσίες τεχνολογίας των πληροφοριών: παροχή συμβουλών, ανάπτυξη λογισμικού, Διαδίκτυο και υποστήριξη
DHSC (or the Department of Health as it was then known) entered into a contract on 16.1.2012 with Atos IT Solutions and Services Ltd following a further competition procedure under NHS Connecting for health's additional supply capability and capacity framework.
The contract is for the provision of bundled IT services to DHSC as customer and other NHS bodies. Services include:
The contract was originally let as a 7-year arrangement comprising a 5-year initial term and 2-year optional extension period. In June 2017, DHSC availed itself of the optional extension right and extended the contract for a period of 2 years with the contract expiry date then becoming 30.4.2020.
The original value of the contract was 76 000 000,00 GBP for the 5-year initial term and an additional 30 300 000,00 GBP for the 2-year optional extension.
DHSC has undertaken an extensive process of analysis to identify the optimal delivery approach for future IT support for DHSC and consuming organisations upon expiry of the contract, following which it has been decided that the contract should be disaggregated and replaced with a new multi-sourced target operating model (‘TOM’) which is being procured by the future services portfolio, a team within NHS England.
DHSC published a voluntary ex ante transparency notice (2019/S 114-280789) in the Official Journal of the European Union on 17.6.2019 notifying the market of the intended modifications ('VEAT Notice') to enable the transition to the TOM.
This notice confirms that the modifications — described in the VEAT Notice and again at VII.2) below — came into effect on 30.6.2019 by way of a contract change notice signed 16.7.2019.
— the contract period has been extended. The modification extends the contract by 24 months. The new expiry date is 30.4.2022,
— the service lines and assets under the contract will become a ‘legacy’ service tower under the TOM and the ‘legacy’ service tower will diminish over time, aligned to the end of the contract,
— other minor and incidental technical changes to the contract required as part of the second extension. These changes include: amendments of relevant timings to ensure that they reflect operational realities; exit and services transfer arrangements to reflect the requirements of the current situation and reducing the amount of time required for termination of certain service towers; reviewing obligations to upkeep certain software; and termination assistance.
The increase in value of 30 000 000,00 GBP from 106 300 000,00 GBP to 136 300 000,00 GBP is made up of the continuation of services during the extended contract period.
In order to enable the transition to the TOM, it has become necessary to extend the contract again by 24 months because:
(i) the TOM will not be fully ready in time to allow the services provided under the contract to be transitioned to it before the previous expiry date. Creation and delivery of the TOM is complex and requires the achievement of a number of transition and transformation objectives, as well as organisational change (e.g. the creation of a new future services organisation to manage the TOM services) and this is likely to take at least a further 12 months beyond the previous expiry date; and
(ii) the level of technical transformation and remediation required of the services under the contract in order to transition to the TOM is not feasible within the current term.


Winner: ATOS IT Services UK Ltd