Contract award notice
Results of the procurement procedure
Section I: Contracting
entity
I.1) Name and addresses
Ministry of Justice
102 Petty France
London
SW1H 9AJ
UK
Telephone: +44 02033343555
E-mail: CCMD_DandT_and_PS_Commercial_Support_Requests@justice.gov.uk
NUTS: UK
Internet address(es)
Main address: www.justice.gov.uk
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
N/A
Reference number: prj_9910
II.1.2) Main CPV code
72000000
II.1.3) Type of contract
Services
II.1.4) Short description
The supply of Application maintainence and support services.
II.1.6) Information about lots
This contract is divided into lots:
No
II.1.7) Total value of the procurement
Value excluding VAT:
60 340 000.00
GBP
II.2) Description
II.2.3) Place of performance
NUTS code:
UK
Main site or place of performance:
Nationally to include MoJ headquarters, HM Courts and tribunals
II.2.4) Description of the procurement
o provide:
i) application maintenance and support for ~35 business-critical applications the majority of
which are used by HM Courts and Tribunal Service; and
ii) potential application development and enhancement services, as and when required. The
applications vary in size, complexity, component technologies, user numbers, interfaces with
other applications, security requirements, service and support hours, business criticality and
hosting arrangements. Most of the applications are classed as "heritage applications" due to
their age. Many are business critical case management or case progression systems used by
the courts and are typically complex and bespoke. Applications may be removed from scope
as they are retired or replaced under new supplier arrangements.
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 authority relies on Regulation 32(2)(b)(ii) (Use of negotiated procedure without prior
publication) of the Public Contracts Regulations 2015 namely: the services can only be
provided by a particular economic operator, the incumbent supplier (CGI IT UK Limited), who
has been providing the services forming the subject matter of this contract under a contract
with the authority for the last 8 years three months which is due to expire on 31.08.23,
because competition is absent for technical reasons, and no reasonable alternative
substitute exists and the absence of competition is not the result of an artificial narrowing
down of the parameters of the procurement for the following reasons.
(a) no other supplier has the necessary technical knowledge and experience to provide the
services, because:
i) most of the applications are bespoke and 'heritage applications' with many over 18 years
old. The heritage applications are difficult to maintain because of their age and complexity
and the extent to which they have been changed over the years and require very specialist
technical knowledge and experience, e.g. skills/experience in using aged programming
languages such as Fortran, COBOL, Pascal and C. The number of people with the skills,
knowledge and experience to maintain and/or enhance them is limited outside CGI, which
has developed significant knowledge and experience of how the applications were built and
developed and how they operate and interface with each other; and
ii) delivering the services relies on non-live development and test environments, and
management access to the live environments, both to provide ongoing support and to
undertake application development/enhancement. For a replacement supplier to provide
the services, they would need access to the same/equivalent existing non-live development
and test environments. To build and implement equivalent development and test
environments would take around 12 months and be challenging, expensive and risky without
the necessary application knowledge/experience. A replacement supplier would additionally
need to establish infrastructure, connectivity and processes to allow secure management
access to the live environments, e.g. to investigate maintenance issues or for boarding
purposes i.e. to deploy new applications/code.
(b) even if it was theoretically possible that another supplier(s) did have the necessary
technical knowledge/experience, which the authority does not consider to be the case, it is
estimated to take a minimum of 18-24 months for a procurement to be run and any
replacement supplier(s) to be able to deliver the services (6 to 12 months to run a
competition to award to another supplier depending on the route/process and around 12
months to transition) whereas the services are required from 01.09.2023.
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:
2023/S 000-023462
Section V: Award of contract
Title: Application Maintenance and Support Services
A contract/lot is awarded:
Yes
V.2 Award of contract
V.2.1) Date of conclusion of the contract
25/08/2023
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
CGI Uk ltd
00947968
20 Fenchurch Street, 14th Floor
London
EC3M 3BY
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:
: 60 340 000.00
GBP
V.2.5) Information about subcontracting
The contract is likely to be subcontracted
Value or proportion likely to be subcontracted to third parties
Proportion: 13 %
Short description of the part of the contract to be subcontracted:
Support and maintenance of applications.
Section VI: Complementary information
VI.3) Additional information
The initial term of the contract is for 12 months with an option to extend for a further period of 12 months. The contract enables the authority to terminate services at its convenience and partially and it is envisaged that a number of applications will be removed from scope over the term as they are retired/replaced and as in-house software delivery capability is developed. The authority intends to commence a competitive procurement process for the maintenance/support of the remaining applications during the initial term.
The estimated maximum contract value for this contract (£60,340,000 GBP) is based on estimated service charges of £31,200,000 GBP with the remaining value discretionary spend on potential project work, and assumes the option to extend the term is exercised. The project work is optional and is not guaranteed, the extension may not be necessary, and applications may be removed from scope over the term, so the actual cost of this contract may be lower than the estimated maximum contract value.
VI.4) Procedures for review
VI.4.1) Review body
High Courts of Justice
Strand
London
WC2A 2LL
UK
VI.5) Date of dispatch of this notice
15/09/2023