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Services - 399336-2019

23/08/2019    S162

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

2019/S 162-399336

Modification notice

Modification of a contract/concession during its term

Legal Basis:
Directive 2014/24/EU

Section I: Contracting authority/entity

I.1)Name and addresses
Official name: Department of Health and Social Care
Postal address: 39 Victoria Street
Town: London
NUTS code: UK UNITED KINGDOM
Country: United Kingdom
Contact person: Lee Fisher
E-mail: WTDCommercial@dhsc.gov.uk
Telephone: +44 1132546882
Internet address(es):
Main address: https://www.gov.uk/government/organisations/department-of-health-and-social-care

Section II: Object

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

IMS3 Contract for the Provision of Information Management Services

Reference number: DH_58131
II.1.2)Main CPV code
72000000 IT services: consulting, software development, Internet and support
II.1.3)Type of contract
Services
II.2)Description
II.2.1)Title:

IMS3 contract for the provision of information management services.

II.2.2)Additional CPV code(s)
72000000 IT services: consulting, software development, Internet and support
II.2.3)Place of performance
NUTS code: UK UNITED KINGDOM
II.2.4)Description of the procurement at the time of conclusion of the contract:

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:

— service management,

— service integration,

— security,

— sustainability,

— infrastructure support and enhancements,

— hosting,

— connectivity,

— end user tools,

— enterprise content management,

— collaboration,

— video conferencing,

— remote flexible working,

— telephony,

— print services,

— user access management and access devices,

— end user support,

— training and education,

— procurement,

— project services,

— applications enhancements, maintenance and support,

— business change,

— business intelligence,

— design authority,

— service improvement and innovation.

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.

II.2.7)Duration of the contract, framework agreement, dynamic purchasing system or concession
Duration in months: 84
II.2.13)Information about European Union funds
The procurement is related to a project and/or programme financed by European Union funds: no

Section V: Award of contract/concession

Contract No: DH_58131
Title:

IMS3 Contract for the Provision of Information Management Services

V.2)Award of contract/concession
V.2.1)Date of conclusion of the contract/concession award decision:
16/01/2012
V.2.2)Information about tenders
The contract/concession has been awarded to a group of economic operators: no
V.2.3)Name and address of the contractor/concessionaire
Official name: ATOS IT Services UK Ltd
Postal address: Second Floor, Mid City Place, 71 High Holborn
Town: London
NUTS code: UK UNITED KINGDOM
Country: United Kingdom
The contractor/concessionaire is an SME: no
V.2.4)Information on value of the contract/lot/concession (at the time of conclusion of the contract;excluding VAT)
Total value of the procurement: 106 300 000.00 GBP

Section VI: Complementary information

VI.3)Additional information:
VI.4)Procedures for review
VI.4.1)Review body
Official name: The High Court
Postal address: Strand
Town: London
Postal code: WC2A 2LL
Country: United Kingdom
VI.5)Date of dispatch of this notice:
20/08/2019

Section VII: Modifications to the contract/concession

VII.1)Description of the procurement after the modifications
VII.1.1)Main CPV code
72000000 IT services: consulting, software development, Internet and support
VII.1.2)Additional CPV code(s)
VII.1.3)Place of performance
NUTS code: UK UNITED KINGDOM
VII.1.4)Description of the procurement:

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:

— service management,

— service integration,

— security,

— sustainability,

— infrastructure support and enhancements,

— hosting,

— connectivity,

— end user tools,

— enterprise content management,

— collaboration,

— video conferencing,

— remote flexible working,

— telephony,

— print services,

— user access management and access devices,

— end user support,

— training and education,

— procurement,

— project services,

— applications enhancements, maintenance and support,

— business change,

— business intelligence,

— design authority,

— service improvement and innovation.

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.

VII.1.5)Duration of the contract, framework agreement, dynamic purchasing system or concession
Duration in months: 84
VII.1.6)Information on value of the contract/lot/concession (excluding VAT)
Total value of the contract/lot/concession: 30 000 000.00 GBP
VII.1.7)Name and address of the contractor/concessionaire
Official name: Atos IT Services UK Ltd
Postal address: Second Floor, Mid City Place, 71 High Holborn
Town: London
NUTS code: UK UNITED KINGDOM
Country: United Kingdom
The contractor/concessionaire is an SME: no
VII.2)Information about modifications
VII.2.1)Description of the modifications
Nature and extent of the modifications (with indication of possible earlier changes to the contract):

The contract has been modified as follows:

— 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.

VII.2.2)Reasons for modification
Need for modification brought about by circumstances which a diligent contracting authority/entity could not foresee (Art. 43(1)(c) of Directive 2014/23/EU, Art. 72(1)(c) of Directive 2014/24/EU, Art. 89(1)(c) of Directive 2014/25/EU)
Description of the circumstances which rendered the modification necessary and explanation of the unforeseen nature of these circumstances:

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.

As explained further in Parts II.2.4) and VI.3) of the VEAT Notice, DHSC considers the modification to be permitted under Articles 72(1)(b) of Directive 2014/24/EU and Regulation 72(1)(b) of the Public Contract.

VII.2.3)Increase in price
Updated total contract value before the modifications (taking into account possible earlier contract modifications and price adaptions and, in the case of Directive 2014/23/EU, average inflation in the Member State concerned)
Value excluding VAT: 106 300 000.00 GBP
Total contract value after the modifications
Value excluding VAT: 136 300 000.00 GBP