Services - 209642-2019
06/05/2019    S87

United Kingdom-London: IT services: consulting, software development, Internet and support

2019/S 087-209642

Voluntary ex ante transparency notice

Services

Legal Basis:
Directive 2014/24/EU

Section I: Contracting authority/entity

I.1)Name and addresses
Official name: The Secretary of State for the Home Department
Postal address: 3rd Floor, Clive House, 70 Petty France
Town: London
NUTS code: UK UNITED KINGDOM
Postal code: SW1H 9EX
Country: United Kingdom
Contact person: ESMCP Commercial Team
E-mail: ESMCPSupplier@homeoffice.gov.uk
Internet address(es):
Main address: https://www.gov.uk/government/organisations/home-office
I.4)Type of the contracting authority
Ministry or any other national or federal authority, including their regional or local subdivisions
I.5)Main activity
Public order and safety

Section II: Object

II.1)Scope of the procurement
II.1.1)Title:

Emergency Services Network (ESN) — Lot 2 User Services — Contract Variation

Reference number: C9284
II.1.2)Main CPV code
72000000 IT services: consulting, software development, Internet and support
II.1.3)Type of contract
Services
II.1.4)Short description:

In December 2015, following advertisement of the contract in the OJEU (on 18.4.2014, reference 2014/S 077-133654), the home office entered into a contract (“the ESN Lot 2 contract") with Motorola Solutions UK Ltd (“Motorola”) for the development and roll-out of a Public Safety Communications Solution (“PSCS”) application which is to be installed on users’ mobile devices, as part of the Home Office’s ESN project. The solution is to be used by emergency services staff. It is to replace the UK’s current “Airwave” PSCS, which uses old technology and is costly. The new solution will provide (amongst other things) “push to talk” functionality and new data services over an existing mobile network (on a prioritised basis).

This notice relates to an intended variation to the original contract (see Section II.2.4 below for a description of the variation).

II.1.6)Information about lots
This contract is divided into lots: no
II.1.7)Total value of the procurement (excluding VAT)
Value excluding VAT: 297 000 000.00 GBP
II.2)Description
II.2.2)Additional CPV code(s)
32500000 Telecommunications equipment and supplies
32523000 Telecommunications facilities
32524000 Telecommunications system
45232332 Ancillary works for telecommunications
48200000 Networking, Internet and intranet software package
48444100 Billing system
50312600 Maintenance and repair of information technology equipment
50324100 System maintenance services
50330000 Maintenance services of telecommunications equipment
50334400 Communications system maintenance services
64212000 Mobile-telephone services
64225000 Air-to-ground telecommunications services
71243000 Draft plans (systems and integration)
72246000 Systems consultancy services
72253000 Helpdesk and support services
72253100 Helpdesk services
72253200 Systems support services
72254000 Software testing
72254100 Systems testing services
72260000 Software-related services
72261000 Software support services
72262000 Software development services
72263000 Software implementation services
72267200 Repair of information technology software
72268000 Software supply services
72315000 Data network management and support services
72318000 Data transmission services
72322000 Data management services
72400000 Internet services
79342300 Customer services
79512000 Call centre
79980000 Subscription services
79990000 Miscellaneous business-related services
80511000 Staff training services
92210000 Radio services
92217000 General Mobile Radio Services/Family Radio Services (GMRS/FRS)
92312212 Services related to the preparation of training manuals
98110000 Services furnished by business, professional and specialist organisations
II.2.3)Place of performance
NUTS code: UK UNITED KINGDOM
II.2.4)Description of the procurement:

Under the existing contract, the main services provided by Motorola are: design of the application; interconnection with the mobile network services procured by the home office from a network provider under the “ESN Lot 3” contract; user service/profile management; device management (provision of SIM cards, etc); customer support and service management (capacity planning, availability planning, etc).

The existing contract with Motorola is to be varied as follows.

— the contract period is to be extended. Its original term is due to expire, insofar as extension options in the original contract are exercised, on 8.12.2023. The variation will extend the term to December 2024 in order to fully rollout the solution to the users and to avoid the risk of impacting on the benefits of the service to the users,

— Motorola's solution will now include its off-the-shelf "Kodiak" product,

— the delivery approach and timetable will be amended to be incremental (rather than "big-bang") and the payment profile will be aligned to this to incentivise delivery,

— historic disputes and claims are between the Home Office and Motorola will be settled.

The total value of the contract will be 401 000 000 GBP which is an increase from the previous 319 000 000 GBP which includes the original OJEU value of 294 000 000 GBP and 25 000 000 GBP of previously agreed changes.

The increase is made up as follows:

— 44 000 000 GBP for the additional 1 years extension of the contract,

— 12 000 000 GBP enhanced support to the Kodiak product; and

— 26 000 000 GBP for additional capability to enable delivery e.g. additional hardware for tesing.

The value of the contract payable after the variation has been concluded is 297 000 000 GBP.

The need for these changes has arisen because the ESN project is delayed and therefore changes are required to the delivery timetable. Further the change from Wave 7 000 to the already working Kodiak product de-risks delivery and enables the programme to move to a standardised solution faster. The incremental approach enables user benefit to be achieved earlier than under a “big bang” rollout. The Home Office needs to secure delivery of an ESN solution as early as it reasonably can, both to avoid high ongoing costs of the Airwave service which ESN will replace; and to provide end users with more modern and advanced functionality. The Home Office considers this variation represents the best option for securing delivery as early as possible.

II.2.5)Award criteria
Quality criterion - Name: Service and technical / Weighting: 70
Cost criterion - Name: Overall cost effectiveness / Weighting: 30
II.2.11)Information about options
Options: no
II.2.13)Information about European Union funds
The procurement is related to a project and/or programme financed by European Union funds: no
II.2.14)Additional information

Section IV: Procedure

IV.1)Description
IV.1.1)Type of procedure
Negotiated procedure without prior publication
  • The works, supplies or services can be provided only by a particular economic operator for the following reason:
    • absence of competition for technical reasons
Explanation:

This is a modification of a contract via a new procurement procedure pursuant to paragraph 5 of Article 72 of Directive 22014/24/EU.

The new procurement procedure is the negotiated procedure without prior publication, under Article 32, which is justified because the services being procured under the modified contract can be provided only by Motorola because competition is absent for technical reasons.

The services required by the Home Office consist of the full rollout of the ESN solution as soon as reasonably possible (to transition away from, and avoid the high costs of, Airwave and to improve end users' PSCS). The soonest that a full rollout could reasonably be achieved is by around December 2022. The home office is therefore procuring services which include the development and full rollout of an ESN solution by around December 2022 (along with a necessary contractual period thereafter, to facilitate transition to a new provider). Only Motorola can provide such services within that timeframe. This absence of competition is for technical reasons: Motorola has made substantial progress in the development of a technical solution, and any alternative provider would require time to “catch up”; a change to a new provider would require the migration of technical infrastructure from Motorola to the new provider, causing further delay; the technical interface between Airwave and ESN is owned by Motorola (and Airwave-ESN interworking will be required to facilitate the transition from ESN to Airwave, and to avoid users having to carry both Airwave and ESN devices, and/or have unsatisfactory “work-arounds” in their control rooms); and the Home Office may be unable to sub-license essential software to a new provider.

There is no reasonable alternative to procuring these services from Motorola: the home office’s assessment is that, were it to use a different provider for all of these services, full rollout would be delayed by approximately 5 years (including the time needed to procure a new provider). Such delay would (principally because of Airwave’s high cost) cost the home office approximately 2 6000 000 000 GBP (full termination). Alternatively, were the home office to continue to use Motorola’s Kodiak solution but switch to a new provider for the Lot 2 “service wrap” around that solution, then it estimates that this would cause a delay of just over 2 years, at a cost of approximately 1 100 000 000 GBP (partial termination). These figures take account the fact that switching to a new provider would be likely to mean that the home office has not only to pay the new provider for the services, but also covers likely additional legal costs and contractual disputes.

The context for these points is that the PSCS is critical national infrastructure.

IV.1.3)Information about framework agreement
IV.1.8)Information about the Government Procurement Agreement (GPA)
The procurement is covered by the Government Procurement Agreement: yes
IV.2)Administrative information
IV.2.1)Previous publication concerning this procedure
Notice number in the OJ S: 2014/S 077-133654

Section V: Award of contract/concession

Contract No: C9284
Lot No: 2
Title:

Emergency Services Network (ESN) — Lot 2 User Services — Contract Variation

V.2)Award of contract/concession
V.2.1)Date of contract award decision:
02/05/2019
V.2.2)Information about tenders
The contract has been awarded to a group of economic operators: no
V.2.3)Name and address of the contractor/concessionaire
Official name: Motorola Solutions UK Ltd
National registration number: 00912182
Postal address: Nova South, Victoria Street
Town: London
NUTS code: UK UNITED KINGDOM
Postal code: SW1E 5LB
Country: United Kingdom
Internet address: www.motorolasolutions.com
The contractor/concessionaire will be an SME: no
V.2.4)Information on value of the contract/lot/concession (excluding VAT)
Initial estimated total value of the contract/lot/concession: 297 000 000.00 GBP
Total value of the contract/lot/concession: 297 000 000.00 GBP
V.2.5)Information about subcontracting
The contract/lot/concession is likely to be subcontracted
Value or proportion likely to be subcontracted to third parties
Proportion: 20 %
Short description of the part of the contract to be subcontracted:

The services include various specialist technical activities such as billing systems and cyber and digital resilience services. Motorola have declared their intention to sub-let some of these elements to relevant specialists. It is anticipated that these sub-contracted services account for in the region of 20 % of the total contract value.

Section VI: Complementary information

VI.3)Additional information:
VI.4)Procedures for review
VI.4.1)Review body
Official name: N/a
Town: N/a
Country: United Kingdom
VI.4.2)Body responsible for mediation procedures
Official name: N/a
Town: N/a
Country: United Kingdom
VI.4.4)Service from which information about the review procedure may be obtained
Official name: N/a
Town: N/a
Country: United Kingdom
VI.5)Date of dispatch of this notice:
02/05/2019