Contract award notice
Results of the procurement procedure
Section I: Contracting
authority
I.1) Name and addresses
The Valuation Tribunal Service
2nd Floor, Leman Street
London
E1 8EU
UK
Contact person: Michael Harkin
E-mail: Michael.Harkin@vts.gsi.gov.uk
NUTS: UKI12
Internet address(es)
Main address: https://www.valuationtribunal.gov.uk/
Address of the buyer profile: https://www.valuationtribunal.gov.uk/about-us/
I.4) Type of the contracting authority
Body governed by public law
I.5) Main activity
General public services
Section II: Object
II.1) Scope of the procurement
II.1.1) Title
Procurement of HMRC Database Service.
II.1.2) Main CPV code
72222300
II.1.3) Type of contract
Services
II.1.4) Short description
The Valuation Tribunal Service's primary business software application (CDB) holds all business appeal, council tax valuation and council tax liability appeal data. The contract is to allow continued access to the application and provision of certain support services (and related to the application) and is required because the previous supply agreement has expired.
II.1.6) Information about lots
This contract is divided into lots:
No
II.1.7) Total value of the procurement
Value excluding VAT:
610 277.34
GBP
II.2) Description
II.2.2) Additional CPV code(s)
72320000
72250000
II.2.3) Place of performance
NUTS code:
UKI12
Main site or place of performance:
The CDB software application will be used at the Valuation Tribunal Service offices in Doncaster and London.
II.2.4) Description of the procurement
The Valuation Tribunal Service's primary business software application (CDB) holds all business appeal, council tax valuation and council tax liability appeal data. The data contained in CBD is essential to the Valuation Tribunal Service's operation.
II.2.5) Award criteria
Price
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
Section IV: Procedure
IV.1) Description
IV.1.1) Type of procedure
Award of a contract without prior publication of a call for competition
Justification for selected award procedure:
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
The Valuation Tribunal Service is an administrative statutory body that performs a specific function in managing appeals brought by individuals and businesses against the Valuation Office Agency (an executive body sponsored by Her Majesty's Revenue and Customs) in relation to disputed council tax bills. Performance of this function relies upon access to, and management of, data recorded by HMRC and its executive agencies, which is currently stored in and accessed via the CDB software application. The Valuation Tribunal Service requires continued access to this data, administrative functionality, and software support services to allow appeals to be processed without interruption. Migration of the data currently held on the CDB system to a new supplier would not allow the Valuation Tribunal Service to perform its functions, as the Valuation Tribunal Service requires continued access to new data regularly added by HMRC, which can only reasonably be achieved through both parties accessing a single database. HMRC are the only supplier to hold the technical know-how, the relevant intellectual property rights and the necessary employees (that have been transferred from the original provider of the CBD application under TUPE Regulations) to continue to support the CBD application and its database, and no other providers are able to provide a solution which will allow the Valuation Tribunal Service to continue to perform its function.
To rely on the Regulation 32(b)(ii) exemption there must be an absence of competition for technical reasons, no other reasonable alternative available, and no artificial narrowing of the parameters of the procurement. In this instance there is an absence of competition as the intellectual property rights required for proper performance of the Services are held and protected by a single third party, and the operation of the Contracting Authority is such that it requires ongoing access to the single database that is currently used by HMRC and its agencies. No other provider is reasonably able to offer services that meet the requirements of the Contracting Authority, and therefore there is no reasonable alternative available. The parameters set by the VTS within this procurement are defined by the specific and niche function it performs, and have not been artificially narrowed.
IV.1.8) Information about Government Procurement Agreement (GPA)
The procurement is covered by the Government Procurement Agreement:
Yes
Section V: Award of contract
Title: Procurement of HMRC Database Service
A contract/lot is awarded:
Yes
V.2 Award of contract
V.2.1) Date of conclusion of the contract
09/11/2016
V.2.2) Information about tenders
Number of tenders received: 1
The contract has been awarded to a group of economic operators:
No
V.2.3) Name and address of the contractor
The Commissioner of Her Majesty's Revenue and Customs
100 Parliament Street
London
SW1A 2BQ
UK
NUTS: UKI11
Internet address(es)
URL: https://www.gov.uk/government/organisations/hm-revenue-customs
The contractor is an SME:
No
V.2.4) Information on value of the contract/lot (excluding VAT)
Initial estimated total value of the contract/lot:
Total value of the contract/lot:
: 610 277.34
GBP
V.2.5) Information about subcontracting
The contract is likely to be subcontracted
Value or proportion likely to be subcontracted to third parties
Value excluding VAT: 610 277.34 GBP
Proportion: 100 %
Short description of the part of the contract to be subcontracted:
HMRC have established a not-for-profit organisation (known as ‘RCDTS’) to manage and support the entirety of the Services under a sub-contract arrangement.
Section VI: Complementary information
VI.4) Procedures for review
VI.4.1) Review body
High Court of England and Wales
London
UK
VI.5) Date of dispatch of this notice
08/12/2016