Contract award notice
Results of the procurement procedure
Section I: Contracting
entity
I.1) Name and addresses
Post Office Limited
100 Wood St
London
EC2V 7ER
UK
E-mail: Procurement@postoffice.co.uk
NUTS: UK
Internet address(es)
Main address: http://www.postoffice.co.uk
Address of the buyer profile: http://www.postoffice.co.uk
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
Payroll Services for Contingent Labour
Reference number: C102348
II.1.2) Main CPV code
79631000
II.1.3) Type of contract
Services
II.1.4) Short description
Provision of payroll services for payment of legacy contingent labour resources until 31/03/25.
II.1.6) Information about lots
This contract is divided into lots:
No
II.1.7) Total value of the procurement
Value excluding VAT:
23 000 000.00
GBP
II.2) Description
II.2.3) Place of performance
NUTS code:
UK
II.2.4) Description of the procurement
Provision of payroll services for payment of legacy contingent labour resources from 01/04/23 to 31/03/25. There was a contract between Intelligent Resources Ltd and Post Office which came to an end 31/03/23. Following a competition under Crown Commercial Services Non-Clinical Temporary and Fixed Term Staff Framework RM6160 ? Lots 2&3, a new Contract was awarded to Morson Human Resources Ltd t/a Morson Talent, with effect from 01/04/23. There were c150 of the Intelligent Resource Ltd resource that could not transfer to the new Contract with Morsons because of exclusive rights that Intelligent Resources Ltd had in the Contract with Post Office. A direct award under Regulation 32(b)(iii) - protection of exclusive rights, including intellectual property rights was made to Intelligent Resource Ltd to provide payroll services for the payment of the legacy resources that were required to continue with Post Office.
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: protection of exclusive rights, including intellectual property rights
Explanation
This contract has been awarded in accordance with the negotiated procedure without prior publication under regulation 32(2)(b)(iii) of the Public Cotnracts Regulations 2015. The services can only be supplied by Intelligent Resources Ltd ("IR") because it has exclusive rights to the contingent labour resources currently delivering services to POL (the ?Resources?). The Resources were engaged to deliver certain assignments for POL (the ?Assignments?) under POLs contract with IR that expired on 31/03/2023 (the ?Old Contract?). The Assignments went beyond the end of the Old Contract but could not be transferred to POLs replacement supplier because IR had exclusive rights to the Resources. On the basis of those exclusive rights, POL could not secure the delivery of the Assignments by the Resources with any other supplier of contingent labour. POL, therefore, required a further contract be awarded to IR to enable the Resources to continue with the Assignments until the completion of those Assignments. There is no reasonable alternative to awarding the contract to IR because POL could not change the Resources that were delivering the Assignments without causing substantial disruption to its business. The Assignments were required to cover projects of strategic importance to provide support on New Branch IT (Information Technology) (NBIT) and the statutory Inquiry. It would not have been reasonable for POL to have changed the contingent labour that is delivering the Resources. Because IR had its exclusive rights over the Resources, there were no reasonable alternatives to the award of the contract to IR. The absence of competition is not caused by an artificial narrowing of the parameters of the procurement because POL has ensured that all resources that could feasibly be transferred to its replacement supplier have been transferred. Only the Resources to which IR has exclusive rights have been retained for the contract and only for the period of the Assignments.
IV.1.8) Information about Government Procurement Agreement (GPA)
The procurement is covered by the Government Procurement Agreement:
Yes
Section V: Award of contract
Contract No: C102348
Title: Payroll Services for Contingent Labour
A contract/lot is awarded:
Yes
V.2 Award of contract
V.2.1) Date of conclusion of the contract
28/06/2023
V.2.2) Information about tenders
Number of tenders received: 1
Number of tenders received from SMEs: 0
Number of tenders received from tenderers from EU Member States: 0
Number of tenders received from tenderers from non-EU Member States: 0
Number of tenders received by electronic means: 0
The contract has been awarded to a group of economic operators:
No
V.2.3) Name and address of the contractor
Intelligent Resource Ltd
First Floor, Clifton Down House, 54a Whiteladies Road
Bristol
BS8 2NH
UK
NUTS: UK
The contractor is an SME:
No
V.2.4) Information on value of the contract/lot (excluding VAT)
Total value of the contract/lot:
: 23 000 000.00
GBP
V.2.5) Information about subcontracting
Section VI: Complementary information
VI.3) Additional information
The Contract is to cover for a period of 24 months (01/04/23 - 31/03/25) for payments to be made to a legacy cohort of contingent labour for various roles providing services to Post Office. The forecast spend is an estimate as Post Office does not have precise forecasts for the period.
VI.4) Procedures for review
VI.4.1) Review body
High Court
Royal Courts of Justice, The Strand
London
UK
VI.5) Date of dispatch of this notice
06/06/2024