Services - 460193-2020

30/09/2020    S190

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

2020/S 190-460193

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 for Work and Pensions
Postal address: Peel Park, Brunel Way
Town: Blackpool
NUTS code: UKD42 Blackpool
Postal code: FY4 5ES
Country: United Kingdom
Contact person: Stephanie Howe
E-mail: STEPHANIE.HOWE@DWP.GOV.UK
Telephone: +44 7393143479
Internet address(es):
Main address: https://www.gov.uk/government/organisations/department-for-work-pensions

Section II: Object

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

Application Deployment (Application Development, Application Maintenance)

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:

Application Deployment (Application Development, Application Maintenance)

II.2.3)Place of performance
NUTS code: UKD42 Blackpool
Main site or place of performance:

DWP Authority Locations.

II.2.4)Description of the procurement at the time of conclusion of the contract:

The Department for Work and Pensions (DWP) has established a comprehensive technology service architecture to support effective delivery to our customers and utilises one of the largest technology estates in Europe.

A key element of the technology estate is the provision of an application deployment service which involves the provision of feasibility, prototyping, design, development, integration, build, test, implementation, maintenance and management of applications, provision of technical consulting, support and continuing development and enhancement of application functionality to support evolving business requirements.

The supplier(s) currently provides an application deployment service (the ‘ADEP Contract’) to the authority under a contract due to expire on: 1 November 2021.

II.2.7)Duration of the contract, framework agreement, dynamic purchasing system or concession
End: 01/11/2024
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: UI_DWP_100133
Title:

Application Deployment (Application Development/Application Maintenance)

V.2)Award of contract/concession
V.2.1)Date of conclusion of the contract/concession award decision:
01/09/2020
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: Accenture UK Ltd
Postal address: 30 Fenchurch Street
Town: London
NUTS code: UK UNITED KINGDOM
Postal code: EC3M 3BB
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: 20 000 000.00 GBP

Section VI: Complementary information

VI.3)Additional information:

No additional information.

VI.4)Procedures for review
VI.4.1)Review body
Official name: Royal Courts of Justice
Postal address: Strand
Town: London
Country: United Kingdom
VI.5)Date of dispatch of this notice:
25/09/2020

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:

The ADEP Contract was awarded on 2 November 2011. The contract provided for a 7-year initial term with a right for the Department to extend for a further period of up to 3 years. The option to extend was exercised in 2018 and is currently due to expire on 1 November 2021. The ADEP contract also contain a right for the Department to extend the term of the contract for a further period to be agreed by the parties or in absence of agreement, for a period of 12 months.

This notice confirms that an extension of up to an additional 3 years to 1 November 2024 has become necessary and has been executed to mitigate the high risk of disruption to the critical public services these applications support.

There is a complex technology stack and legacy applications in the hosting environments written in outdated software languages. Transferring responsibility for managing, supporting and modifying the solution to another supplier would therefore carry a high risk of disruption to service continuity, e.g., the application PTP CAM is a customised Siebel CRM application, providing customer account management with integrated telephony across Pension Centres and other departmental offices. It presents processing agents with a customer record based on NINO search allowing capture and update of information provided via phone or by post. The application has interfaces to various DWP applications either calling data as required and/or updating data to other applications. Therefore, it is a critical application to capture Pension customer’s data and enabling accurate processing of these customer Pension applications.

Therefore, a change of contractor cannot be made due to technical and economic factors and would cause significant inconvenience and substantial duplication of costs for the Department. The extension period is needed to ensure the Department can continue to support live service and provide business continuity for the applications whilst supporting the Department to continue its programme of retiring these end of life applications.

— Re-procurement of the service: given the scale and complexity of the services in question, the procurement and transition to a new contractor would mean the new service would not be ready until well after the current ADEP Contract expiry date, therefore requiring use of the existing extension options nonetheless. This challenge has also been significantly exacerbated by the Covid pandemic. This approach would result in substantial duplicated costs for the Department compared with its strategy of a ‘wither on the vine’ run down of the legacy service.

— Dual transition of the service (transitioning the existing service in-house and then again to the new solution): transitioning the existing service in-house and then again to a new digital solution would result in substantial duplicated costs and inconvenience for the Department.

The above options also carry a high risk of disruption to the critical applications and services that UK citizens rely on to maintain their livelihood. The Department's strategy will operate and complete the retiring of these applications over the extension period.

The anticipated value of the contract extension does not exceed 50 % of the value of the original contract. The service is retiring and the contract charges are reducing over the period commensurate with the planned decommissioning of the applications and systems.

The modifications are not substantial. There are no material changes to the scope of services proposed. The changes proposed focus on cost reduction and realignment of charging units so the economic balance of the ADEP Contract does not change in favour of the supplier.

The scope of the contract has reduced as applications have been decommissioned or brought in house.

As explained more fully in section IV, the Department considers the proposed extension to be justifiable under Regulation 72 of the Public Contracts Regulations 2015, namely Regulation 72(1)(b) and (e)(8).

VII.1.5)Duration of the contract, framework agreement, dynamic purchasing system or concession
End: 01/11/2024
VII.1.6)Information on value of the contract/lot/concession (excluding VAT)
Total value of the contract/lot/concession: 20 000 000.00 GBP
VII.1.7)Name and address of the contractor/concessionaire
Official name: Accenture UK Ltd
National registration number: 30 Fenchurch Street
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 extended based on its previous scope of services.

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:

As detailed in section VII 1.4) of this modification notice.

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: 408 000 000.00 GBP
Total contract value after the modifications
Value excluding VAT: 428 000 000.00 GBP