Award of a contract without prior publication of a call for competition in the Official Journal of the European Union in the cases listed below
This procurement was conducted pursuant to the negotiated procedure without prior publication, under Article 32 of Directive 2014/24/EU. Having taken legal advice, for the reasons set out below, the authority's awards this contract under Article 32 paragraph 2(b)(iii) as the services being procured can be provided only by the Awardee who alone has the necessary proprietary intellectual property rights required to be licensed under the contract. There is no reasonable alternative to the Awardee in the circumstances.
The Secretary of State for the Home Department requires the Integrated Communications and Control Solution (ICCS) used by various ESN users’ (ESN Users) to interface with ESN’s push to talk (PTT) application, Kodiak. The development is to commence with integration for the minimum subset of Kodiak 9.0, 9.1 features, subsequently migrating to Kodiak 10 and potentially other future releases as necessary to support the delivery of ESN.
This contract requires the Awardee
(i) to upgrade its ICCS so it is capable of interfacing with Kodiak (the Kodiak SD Services); and
(ii) to pass on the benefit of that upgrade to the ESN Users without additional charge.
The ESN Users had previously contracted with their ICCS vendor to upgrade the ICCS to interface with Wave7000, the former PTT application used by ESN which work the Secretary of State for the Home Department funded through grants. As a result of the recent reset of the programme, the ESN solution has moved from Wave7000 to Kodiak, meaning that any investment in and development of a Wave7000 interface was lost.
The Secretary of State for the Home Department, therefore, concluded that, to meet the programme timetable and to avoid duplicating costs, it would contract directly with the ICCS vendors to upgrade their solutions to Kodiak.
The contracts between the ESN Users and the Awardee are personal to the parties and subject to the intellectual property right (IPR) in their ICCS. It would not be possible to appoint a third party to develop the Awardee’s ICCS. As a result, it is not possible for a third party to provide the Kodiak SD Services.
The Awardee is the only control room supplier that can provide the Kodiak SD Services to its ICCS. The Awardee owns the IPR in ICCS and will not allow a third-party access to the source code/background IPRs. As the Secretary of State for the Home Department cannot force the control room suppliers to grant access to their IPRs, it is not possible to contract with a third party to provide the Kodiak SD Services. An open procurement by competition for the Kodiak SD Services would be futile as only the Awardee could win a competition to provide the Kodiak SD Services to its CR Solution.
There are no reasonable alternatives to the award of the contract to the Awardee. If the ESN Users were to amend their current control room contract it would result in same control room supplier being awarded the contract, i.e. the Awardee would remain the same but the issuer would vary. The outcome is therefore unchanged and as noted above, this alternative would delay the delivery of the programme. There is also substantial risk of duplication of costs across all Users in this scenario.
The Secretary of State for the Home Department cannot require the ESN Users to procure alternative suppliers for its ICCS and the Kodiak SD Services. The Secretary of State for the Home Department does not exercise control over the ESN Users to force them to procure a new ICCS vendor nor does it have the right to impose ICCS vendors on the users. For these reasons, there are no reasonable alternatives to this award made pursuant to Article 32(2)(b)(iii).