Section one: Contracting authority/entity
one.1) Name and addresses
UNITED UTILITIES WATER LIMITED
Haweswater House,Lingley Mere Business Park, Lingley Green Avenue, Great Sankey
WARRINGTON
WA53LP
Contact
Grace Power
RegulatoryProcurementTeam@uuplc.co.uk
Telephone
+44 1925677588
Country
United Kingdom
NUTS code
UKD - NORTH WEST (ENGLAND)
Internet address(es)
Main address
https://www.unitedutilities.com/corporate
Buyer's address
https://www.unitedutilities.com/corporate
one.4) Type of the contracting authority
Other type
Utilities
one.5) Main activity
Other activity
Water
Section two: Object
two.1) Scope of the procurement
two.1.1) Title
Supply & Delivery of PLC, HMI, SCADA and Industrial Networking Equipment
Reference number
PRO004136
two.1.2) Main CPV code
- 38800000 - Industrial process control equipment and remote-control equipment
two.1.3) Type of contract
Supplies
two.1.4) Short description
The requirement is to supply a range of site based hardware & software supported by a supervisory control and data acquisition platform to support the United Utilities Wholesale business and its need to automate, monitor &control.
- Local Automation PLC/HMI Hardware & Software
- SCADA Software - Supervisory Control Software
- SCADA Systems Hardware - Servers & PLC's
two.1.6) Information about lots
This contract is divided into lots: No
two.1.7) Total value of the procurement (excluding VAT)
Value excluding VAT: £8,000,000
two.2) Description
two.2.2) Additional CPV code(s)
- 31682210 - Instrumentation and control equipment
- 32441200 - Telemetry and control equipment
- 35710000 - Command, control, communication and computer systems
- 38810000 - Industrial process control equipment
- 42961200 - Scada or equivalent system
two.2.3) Place of performance
NUTS codes
- UKD - NORTH WEST (ENGLAND)
two.2.4) Description of the procurement
The contractual arrangement for supplies will include:
- Local Automation PLC/HMI Hardware & Software
- SCADA Software - Supervisory Control Software
- SCADA Systems Hardware - Servers & PLC's
The contractual arrangement for services will include:
- Pre and post sales application support
- Technical support and training
- Engineering software licences.
- Supply of hardware and software compliant with the BS EN 62443 Standard for Cyber Security and represent best practice with regards to the NIS Directive
- Associated Spares
- Field Services
In delivering the supplies under this contractual agreement, it is a requirement that the Supplier shall comply with the relevant technical standards which will be detailed within the agreement.
With regards to the hardware and software (i.e. supplies), these shall be required by a number of third party routes, including but not limited to:
- UU Internal teams
- UU Framework Systems Integrators working for UU's delivery partners
- Maintenance delivery partners
- Construction delivery partners
- Design & Build contractors
two.2.11) Information about options
Options: No
two.2.14) Additional information
Type of procedure
Negotiated procedure without prior call for competition
Additional deliveries by the original supplier ordered under the strict conditions stated in the directive
Explanation:
United Utilities the contracting entity, 90% of its operational sites are controlled, monitored and automated using Siemens S7 PLCs and WinCC SCADA software and the next investment programme calls for circa 2% of its PLC/SCADA to be replaced. Awarding the PLC/SCADA contract to any supplier other than the incumbent will re-introduce 'Islands of Automation' onto our sites.
This introduces numerous potential issues such as:
- Single Points of Failure;
- Duplication of both tasks and data;
- More complex designs;
- Lengthier troubleshooting; and
- is generally and much more inefficient way to automate a site.
At a site level United Utilities has mostly eliminated this issue, to introduce differing technology (with limited to no interconnectivity) to these sites would be to reintroduce issues such as the above.
An alternative to introducing Islands of Automation would be to replace all hardware and software on a site that is introducing new hardware. This would require software to be reverse engineered and redesigned in a way to work on the new platform and then being re-commissioned.
Independent third parties have provided proposals for a full PLC replacement project (using non incumbent technology), based on a typical UU Waste Water plant size using the above scenario for verification. The technical complexity (design, coding and testing effort required) to achieve this, when compared to implementing an additional PLC onto a site using the incumbent's technology, was found to be a ratio of 11:1.
The Framework was last tendered in 2009, with minor amendments to scope and terms negotiated with the successful supplier, (Siemens PLC), as part of the strategy for Kit Framework awards for AMP6 in 2015.
Prior to 2009, Siemens were also the incumbent supplier for these products and services and have been the UU SCADA platform provider since 2004
The Kit Framework is still in place with Siemens PLC until Sept 2020, with no further extension options under the current arrangement which has now expired.
United Utilities conducted stakeholders meetings and agreement sought that confirm the optimum solution would be to re-negotiate with the current incumbent, there is a need to justify and confirm the disproportionality of re-tendering v transition costs, i.e. the cost of changing asset base, associated protocols, training material, maintenance regimes, spares and knowledge etc., should the solution provider change.
United Utilities conclusion is that the significant extra technical steps required to transition to a change of supplier would oblige the utility to acquire supplies having different technical characteristics which would result in incompatibility or disproportionate technical difficulties in operation and maintenance. It is therefore, necessary to conduct a negotiated procedure without prior call for competition, as highlighted above United Utilities have acted in good faith prior to coming to this decision based on the due diligence that has been conducted.
Section four. Procedure
four.1) Description
four.1.1) Type of procedure
Award of a contract without prior publication of a call for competition in the cases listed below
- The procurement falls outside the scope of application of the regulations
Explanation:
United Utilities the contracting entity, 90% of its operational sites are controlled, monitored and automated using Siemens S7 PLCs and WinCC SCADA software and the next investment programme calls for circa 2% of its PLC/SCADA to be replaced. Awarding the PLC/SCADA contract to any supplier other than the incumbent will re-introduce 'Islands of Automation' onto our sites.
This introduces numerous potential issues such as:
- Single Points of Failure;
- Duplication of both tasks and data;
- More complex designs;
- Lengthier troubleshooting; and
- is generally and much more inefficient way to automate a site.
At a site level United Utilities has mostly eliminated this issue, to introduce differing technology (with limited to no interconnectivity) to these sites would be to reintroduce issues such as the above.
An alternative to introducing Islands of Automation would be to replace all hardware and software on a site that is introducing new hardware. This would require software to be reverse engineered and redesigned in a way to work on the new platform and then being re-commissioned.
Independent third parties have provided proposals for a full PLC replacement project (using non incumbent technology), based on a typical UU Waste Water plant size using the above scenario for verification. The technical complexity (design, coding and testing effort required) to achieve this, when compared to implementing an additional PLC onto a site using the incumbent's technology, was found to be a ratio of 11:1.
The Framework was last tendered in 2009, with minor amendments to scope and terms negotiated with the successful supplier, (Siemens PLC), as part of the strategy for Kit Framework awards for AMP6 in 2015.
Prior to 2009, Siemens were also the incumbent supplier for these products and services and have been the UU SCADA platform provider since 2004
The Kit Framework is still in place with Siemens PLC until Sept 2020, with no further extension options under the current arrangement which has now expired.
United Utilities conducted stakeholders meetings and agreement sought that confirm the optimum solution would be to re-negotiate with the current incumbent, there is a need to justify and confirm the disproportionality of re-tendering v transition costs, i.e. the cost of changing asset base, associated protocols, training material, maintenance regimes, spares and knowledge etc., should the solution provider change.
United Utilities conclusion is that the significant extra technical steps required to transition to a change of supplier would oblige the utility to acquire supplies having different technical characteristics which would result in incompatibility or disproportionate technical difficulties in operation and maintenance. It is therefore, necessary to conduct a negotiated procedure without prior call for competition, as highlighted above United Utilities have acted in good faith prior to coming to this decision based on the due diligence that has been conducted.
four.1.3) Information about a framework agreement
The procurement involves the establishment of a framework agreement
four.1.8) Information about the Government Procurement Agreement (GPA)
The procurement is covered by the Government Procurement Agreement: No
four.2) Administrative information
four.2.1) Previous publication concerning this procedure
Notice number: 2018/S 238-544820
Section five. Award of contract/concession
Contract No
PRO004136
Lot No
1
Title
Supply & Delivery of PLC, HMI & SCADA and Industrial Networking Equipment
A contract/lot is awarded: Yes
five.2) Award of contract/concession
five.2.1) Date of conclusion of the contract
10 February 2021
five.2.2) Information about tenders
The contract has been awarded to a group of economic operators: No
five.2.3) Name and address of the contractor/concessionaire
Siemens Plc
00727817 Farraday House, Sir William Siemens Square, Frimley
Camberley
GU168QD
Country
United Kingdom
NUTS code
- UKJ - SOUTH EAST (ENGLAND)
The contractor/concessionaire is an SME
No
five.2.4) Information on value of contract/lot/concession (excluding VAT)
Total value of the contract/lot/concession: £8,000,000
Section six. Complementary information
six.4) Procedures for review
six.4.1) Review body
High Court of England and Wales, London, United Kingdom
London
Country
United Kingdom