Contract award notice
Results of the procurement procedure
Section I: Contracting
entity
I.1) Name and addresses
Scottish Government
Area 3A South, Victoria Quay
Edinburgh
EH6 6QQ
UK
Telephone: +44 1412240990
E-mail: Angus.Mackenzie2@gov.scot
NUTS: UKM
Internet address(es)
Main address: http://www.scotland.gov.uk
Address of the buyer profile: https://www.publiccontractsscotland.gov.uk/search/Search_AuthProfile.aspx?ID=AA10482
I.4) Type of the contracting authority
Ministry or any other national or federal authority, including their regional or local subdivisions
I.5) Main activity
General public services
Section II: Object
II.1) Scope of the procurement
II.1.1) Title
Digital Support Services for the Agriculture and Rural Economy Directorate
Reference number: CASE/657187
II.1.2) Main CPV code
72267100
II.1.3) Type of contract
Services
II.1.4) Short description
The primary requirement is for the Service Provider to work in partnership, primarily with the Purchaser, to ensure that reliable, secure and up to date services continue to be delivered. The Service Provider will support existing services as well as any new services that come into the production environment during the life of this contract. The contract will focus on the support, maintenance, upgrading and enhancement of current services. Any major new service designs and developments are likely to be subject to separate contractual arrangements, but this contract will have scope for some new development work should that be the practical and cost-effective approach.
This contract must allow flexibility for the Purchaser to access the right resources, with the right skills, at the right time. The intention at the outset is the Service Provider will be required to provide scalable access to resources by supplementing in-house staff and other specialist services predominantly in blended teams to ensure efficient and effective system maintenance, support, enhancement and modernisation activities. Work will be led by the Purchaser joined by Service Provider staff working in blended teams.
The Purchaser has found that working in blended teams in recent years has been successful and wishes to retain this practice as its underpinning model and continue to drive flexibility and efficiencies in its ways of working. The Service Provider will likely be required to deliver some end-to-end projects during the life of the contract, working to Scottish Government agreed standards and practices. The Service Provider will be required to provide resources and services that have the capability, flexibility and responsiveness required. The ability to scale up, scale down and potentially swap out based on emerging requirements and technology is vital.
II.1.6) Information about lots
This contract is divided into lots:
No
II.1.7) Total value of the procurement
Value excluding VAT:
95 000 000.00
GBP
II.2) Description
II.2.3) Place of performance
NUTS code:
UKM
Main site or place of performance:
Saughton House, Edinburgh, Broomhouse Dr, Edinburgh EH11 3XD.
II.2.4) Description of the procurement
The Agriculture and Rural Economy Directorate (ARE) within Scottish Government is responsible for supporting Scotland's sustainable economic growth in agriculture, the food industry and in rural areas.
ARE delivers a broad range of essential payments and support services to rural customers across Scotland. There are a variety of schemes that benefit the rural sector both economically and environmentally. These are explained in significant detail on the Rural Payments and Services website. They are almost totally dependent on digital services and technologies to ensure that claims for subsidies, grants and support under several schemes are delivered in a timely, accurate and compliant way. This ensures farmers, crofters and land managers across Scotland receive the payments which they are entitled to and, overall, the Scottish Government fulfils its legal obligations and delivers its policy intentions.
The main Rural Payments and Services (RP&S) Digital Platform is highly complex due to the significant level of accuracy in land measurement and associated actions that it needs to work to. It was specifically designed to apply the EU CAP regulations, often in great detail, based on a technical architecture that was first defined in 2012. Other technologies and services that predate the main Platform still form a vital part of the overall solution, and there have been some newer services introduced that are based on the latest technologies and approaches available.
There is a triple imperative:
1. The Purchaser will be continuing to modernise and improve the complete technical architecture that underpins the services;
2. The Purchaser will be continuing to adapt the existing support schemes and introduce new ones that will deliver the desired outcomes for agriculture, the environment, biodiversity and the rural economy;
3. The Purchaser will be continuing to apply digital thinking and innovation to exploit technologies and provide customer-centred, reliable, secure and cost-effective services.
Change cannot be allowed to negatively impact the current business. Using the Rural Payments and Services (RP&S) Digital Platform and supporting Digital systems, Rural Payments and Inspections Division (RPID), from 18 offices throughout Scotland, processes payments of around 600 million GBP annually to customers, to the benefit of Scotland’s rural communities and the rural economy. The platform processes 36,000 types of claims per year for about 20,000 customers (representing 46,000 registered businesses) and has well over 99% availability to customers 24/7, 365 days a year. RPID is now making payments quicker than ever before.
The primary focus of the Purchaser through this contract is the retiral, maintenance and enhancement of the current services, but also extending them and integrating them as appropriate in order to benefit from digital innovations. When new features are developed they will become “business as usual” and must be kept reliable and secure.
The Climate Change and Environment Emergency is front and centre of the Government’s policy and ARE has a leading role in setting and delivering Climate Change related targets. ARE has published its Vision for Agriculture and Scotland’s Agricultural Reform Route Map which together set out how Scotland as a leader in sustainable and regenerative farming will be delivered. The Agriculture Reform Programme has been established to implement change. It is vital that services are reliable, secure and fully maintained as these now policies and approaches are implemented. Prospective Service Providers need to be aware that the changes and new services that are introduced through the ARP need to be seamlessly transitioned into current live services during the course of the Programme through to 2027 and beyond.
II.2.5) Award criteria
Quality criterion: Quality
/ Weighting: 80
Price
/ Weighting:
20
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
II.2.14) Additional information
Economic operators may be excluded from this competition if they are in any of the situations referred to in regulation 58 of the Public Contracts (Scotland) Regulations 2015.
Section IV: Procedure
IV.1) Description
IV.1.1) Type of procedure
Restricted procedure
IV.1.8) Information about Government Procurement Agreement (GPA)
The procurement is covered by the Government Procurement Agreement:
Yes
IV.2) Administrative information
IV.2.1) Previous publication concerning this procedure
Notice number in the OJ S:
2024/S 000-010511
Section V: Award of contract
Contract No: CASE/657187
A contract/lot is awarded:
Yes
V.2 Award of contract
V.2.1) Date of conclusion of the contract
14/04/2025
V.2.2) Information about tenders
Number of tenders received: 4
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: 4
Number of tenders received by electronic means: 4
The contract has been awarded to a group of economic operators:
No
V.2.3) Name and address of the contractor
Version 1 Solutions Limited
6 Waterloo Place
Edinburgh
EH1 3EG
UK
Telephone: +44 1316599200
NUTS: UKM
The contractor is an SME:
No
V.2.4) Information on value of the contract/lot (excluding VAT)
Total value of the contract/lot:
: 95 000 000.00
GBP
V.2.5) Information about subcontracting
Section VI: Complementary information
VI.3) Additional information
At the outset of the procurement a value of 95m GBP was set for the duration of this contract (initial term plus extension options). This figure has been chosen to allow flexibility should ARE require more resource than currently anticipated over the potential seven-year contract. Based on current spend on similar existing contracts, we anticipate spend to be in the region of 60-85m GBP. However, there is no guarantee of level of spend under the contract.
The contract will mainly operate through a Statement of Work mechanism whereby the Purchaser and the Service Provider agree well in advance the the capabilities and services required for a defined period ahead or for a specific piece of project-oriented work.
The Service Provider has committed to delivering the following community benefits as a result of this contract:
- Paid internships and mentoring sessions/skills masterclasses for up to 12 students per year.
- Four 1-week work experience programmes for at least 25 (up to 50) young people each year in Scotland.
- 4,500 people training hours on digital skills for farms/micro-enterprise including donation of 150 digital devices.
The Service Provider is accredited as a Living Wage Employer and will continue to pay that wage rate through the duration of this contract.
(SC Ref:796249)
VI.4) Procedures for review
VI.4.1) Review body
Edinburgh Sheriff Court and Justice of the Peace Court
Edinburgh
EH1 1LB
UK
Telephone: +44 1312252525
E-mail: edinburgh@scotcourts.gov.uk
Internet address(es)
URL: https://www.scotcourts.gov.uk/the-courts/court-locations/edinburgh-sheriff-court-and-justice-of-the-peace-court
VI.5) Date of dispatch of this notice
07/05/2025