Contract award notice – utilities
Section I: Contracting
entity
I.1) Name and addresses
Thames Water Utilities Limited
Procurement Support Centre — 3rd Floor East, C/O Mail Room, Rose Kiln Court
Reading
RG2 0BY
UK
E-mail: procurement.support.centre@thameswater.co.uk
NUTS: UKJ11
Internet address(es)
Main address: www.thameswater.co.uk
I.6) Main activity
Water
Section II: Object
II.1) Scope of the procurement
II.1.1) Title
Technology and Transformation Alliance Agreement (the TTA Agreement) — deed of variation
Reference number: 1264
II.1.2) Main CPV code
48000000
II.1.3) Type of contract
Services
II.1.4) Short description
Deed of Variation to the TTA Agreement to incorporate improved delivery and transformation solution.
II.1.6) Information about lots
This contract is divided into lots:
No
II.1.7) Total value of the procurement
Lowest offer:
/ Highest offer:
II.2) Description
II.2.2) Additional CPV code(s)
30000000
32400000
32500000
72222300
42961200
72227000
64200000
32441200
71314300
79000000
79400000
79412000
79414000
79418000
79512000
79993000
50111000
II.2.3) Place of performance
NUTS code:
UKI
UKJ
II.2.4) Description of the procurement
The original TTA Agreement was entered into under a contract notice reference 2015/S 187-340119 in order to deliver all of Thames’ core information technology/operational technology across its whole business until potentially the end of Asset Management Plan 8 (“AMP 8”) (31.3.2030). The TTA Agreement envisaged regular transformation and innovation in the way in which the services are to be delivered under an alliance/partnership arrangement. Considerable core and future scope was advertised as part of the original procurement.
This Deed of Variation follows a review of how the TTA Alliance operates in line with the key Alliance principle to seek continuous improvement. The following innovations and improvements, are being implemented by Thames Water and the Alliance Member (being the successful consortium entities collectively):
— Reallocation of responsibility for delivery of certain core IT services between Consortium Entities. The core IT “Run Order” with the Alliance Member to be separated into distinct “service towers” to be performed by specified Consortium Entities based on the Alliance principle of the “best person for the job”,
— The pricing schedule has been amended to reflect the reorganization of, and improvement to, the services,
— The agreement to various projects with the Alliance Member in order to carry out activities required to modernize Thames Water’s IT estate to account for technological and other improvements envisaged under the original TTA Agreement,
— The removal of one Consortium Entity as envisaged and permitted by the Agreement,
— certain core IT services being taken in-house by Thames Water,
— the sourcing of new hardware, software and services from the Alliance Member as envisaged as a future scope within the original procurement and TTA Agreement and which will be procured by the Alliance Member from specified subcontractors,
— removal of previous commercial incentive mechanism for shared performance,
— the improvement of the core IT services through reduced and simplified SLAs which reflects technology changes and industry norms,
— confirmation of the term of the Agreement until a date within the AMP8 period,
— other ancillary drafting changes to implement the above, including to governance mechanisms.
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 procurement falls outside the scope of application of the Directive
Explanation
Thames Water considers that the majority of the changes implemented in the Deed of Variation do not affect the nature or scope of the original TTA Agreements in respect of the basis upon which the they were originally procured or the value as originally advertised and therefore these changes are not substantial modifications as defined by Article 89(7) of EU Directive 2014/25/EU and Regulation 88(7) of the UK’s Public Contracts Regulations 2016; specifically:
1) the variations do not render the contract materially different in character from the one initially concluded as such TTA Agreement was envisaged to have considerable scope and value;
2) Thames Water has considered the original procurement and is satisfied that such changes do not introduce conditions which may have affected the outcome of the original procurement;
3) collectively the variations do not alter the economic balance of the contract in favour of the contractors as the overall expected value to the end of the term remains unchanged;
4) the variations do not extend the scope of the contract considerably; and
5) there is no change to the parties to the contract other than one party has left the Alliance as permitted and envisaged in clear, precise and unequivocal review clauses
The TTA Agreements envisaged that the Alliance (being Thames Water and the Alliance Member) would keep under review the way it operates and would revise the way it operates regularly in line with the key Alliance principle to seek continuous improvement and to foster innovation in the manner in which the technology services are provided. The original procurement appointed a long term alliance arrangement capable of encompassing a number of contractual changes to the technology services over the term. The TTA Agreement (and original procurement) envisages that Thames Water’s technology requirements would change over time (including as to scope and pricing) and Thames would work with its Alliance Member to implement such changes. It also provided that Consortium Entities may be replaced or removed by the Alliance Member at the Alliance Member’s instigation provided the services would not be effected.Therefore in the event that one or more of the changes are considered to be substantial, Thames Water also considers that Article 89(1) of EU Directive 2014/25/EU and Regulation 88(1) of the UK’s Public Contracts Regulations 2016 applies to such changes in any event.
IV.1.8) Information about Government Procurement Agreement (GPA)
The procurement is covered by the Government Procurement Agreement:
No
IV.2) Administrative information
IV.2.1) Previous publication concerning this procedure
Notice number in the OJ S:
2015/S 187-340119
Section V: Award of contract
Contract No: 1
Title: Deed of Variation to the Thames Technology Alliance Agreement
A contract/lot is awarded:
Yes
V.2 Award of contract
V.2.1) Date of conclusion of the contract
22/05/2018
V.2.2) Information about tenders
The contract has been awarded to a group of economic operators:
Yes
V.2.3) Name and address of the contractor
Accenture (UK) Limited
London
UK
NUTS: UKI
The contractor is an SME:
No
V.2.3) Name and address of the contractor
Bilfinger Industrial Automation Services Limited
Merseyside
UK
NUTS: UKD7
The contractor is an SME:
No
V.2.3) Name and address of the contractor
Bilfinger (UK) Limited
Runcorn
UK
NUTS: UKD6
The contractor is an SME:
No
V.2.3) Name and address of the contractor
IBM United Kingdom Limited
Portsmouth
UK
NUTS: UKJ31
The contractor is an SME:
No
V.2.5) Information about subcontracting
Section VI: Complementary information
VI.4) Procedures for review
VI.4.1) Review body
Thames Water Utilities Limited
Reading
UK
VI.5) Date of dispatch of this notice
22/05/2018