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United Kingdom-London: IT services: consulting, software development, Internet and support
Modification of a contract/concession during its term
Section I: Contracting authority/entity
Section II: Object
IMS3 Contract for the Provision of Information Management Services
IMS3 contract for the provision of information management services.
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,
— infrastructure support and enhancements,
— end user tools,
— enterprise content management,
— video conferencing,
— remote flexible working,
— print services,
— user access management and access devices,
— end user support,
— training and education,
— 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.
Section V: Award of contract/concession
Section VI: Complementary information
Section VII: Modifications to the contract/concession
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.
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.