Section one: Contracting authority/entity
one.1) Name and addresses
NHS England
Quarry House
Leeds
LS2 7UE
Contact
anita.pannu@nhs.net
Country
United Kingdom
NUTS code
UKE - Yorkshire and the Humber
Internet address(es)
Main address
Buyer's address
Section two: Object
two.1) Scope of the procurement
two.1.1) Title
ISFE Extension During re-Procurement
Reference number
BC-09198
two.1.2) Main CPV code
- 75100000 - Administration services
two.1.3) Type of contract
Services
two.2) Description
two.2.2) Additional CPV code(s)
- 72212440 - Financial analysis and accounting software development services
- 66172000 - Financial transaction processing and clearing-house services
- 48440000 - Financial analysis and accounting software package
- 48812000 - Financial information systems
- 72250000 - System and support services
- 48441000 - Financial analysis software package
- 72232000 - Development of transaction processing and custom software
- 48812000 - Financial information systems
- 79210000 - Accounting and auditing services
- 79211000 - Accounting services
- 79211120 - Sales and purchases recording services
- 79211200 - Compilation of financial statements services
- 79994000 - Contract administration services
- 79222000 - Tax-return preparation services
- 79999200 - Invoicing services
two.2.3) Place of performance
NUTS codes
- UKH - East of England
Main site or place of performance
Leeds
two.2.4) Description of the procurement at the time of conclusion of the contract:
ISFE is a service currently provided through NHS SBS, which is a joint venture between Department of Health & Social Care (DHSC) and Sopra Steria. ISFE enables NHS England to prepare consolidated accounts.The service is mandated across the NHS England group and NHS Improvement, and is wholly funded by NHS England and NHS Improvement. Users of the current service are commissioners (CCGs, Regions), national teams and CSUs. NHS England & Improvement is currently preparing the tender documentation for a replacement Integrated Financial System but the project is large and complex. During the planning stages for the re-procurement it was identified that short term uncertainties regarding Group structure posed significant challenge to finalising a tender specification. The outbreak of the Covid-19 pandemic has also meant that the project team and other key colleagues have had to focus their resource on keeping critical business processes running and work on the procurement of the new contract has inevitably been delayed.The provision of the ISFE platform and services is business critical, delivering key functionalities to all NHS England group organisations and NHS Improvement. An extension to the existing agreement has therefore been from 1st April 2021 to the 31st March 2024 agreed to allow sufficient time for a robust governance and procurement process and provide enough time for design and implementation.The current timeline assumes that the tender for the replacement ISFE system will go live toward July of 2021 with further engagement with suppliers expected in advance of this to finalise the requirements and tender approach.
two.2.7) Duration of the contract, framework agreement, dynamic purchasing system or concession
Start date
1 April 2013
End date
31 March 2021
In the case of framework agreements, provide justification for any duration exceeding 4 years
The ISFE re-procurement project is a large and complex project which will deliver a replacement for the current service. During the planning stages for the reprocurement it was identified that short term uncertainties regarding Group structure posed significant challenge to finalising a tender specification during 2019 with a review to implementing a replacement service by April 2021. The outbreak of the Covid-19 pandemic has meant that the project team and other key colleagues have had to focus their resource on keeping critical business processes running and work on the procurement of the new contract has inevitably been delayed.The extension allows enough time for a robust governance and procurement process and provides enough time for design and implementation.
two.2.13) Information about European Union Funds
The procurement is related to a project and/or programme financed by European Union funds: No
Section four. Procedure
four.2) Administrative information
four.2.1) Contract award notice concerning this contract
Notice number: 2018/S 232-530176
Section five. Award of contract/concession
Contract No
1
Title
Integrated Single Financial Environment
five.2) Award of contract/concession
five.2.1) Date of conclusion of the contract/concession award decision:
1 April 2021
five.2.2) Information about tenders
The contract/concession has been awarded to a group of economic operators: No
five.2.3) Name and address of the contractor/concessionaire
NHS Shared Business Services Ltd
Three, Cherry Trees Lane, Hemel Hempstead, Hertfordshire
Hemel Hempstead
HP2 7AH
Country
United Kingdom
NUTS code
- UKE - Yorkshire and the Humber
National registration number
05280446
Internet address
The contractor/concessionaire is an SME
Yes
five.2.4) Information on value of the contract/lot/concession (at the time of conclusion of the contract;excluding VAT)
Total value of the procurement: £59,200,000
Section six. Complementary information
six.3) Additional information
Regulation 72 (1) (b) allows modifications to accommodate additional works, services or supplies by the original contractor, which have become necessary but were not included in the initial procurement, where a change of contractor cannot be made for economic or technical reasons and would cause significant inconvenience and substantial duplication of costs for the contracting authority and any increase in price also does not exceed 50% of the value of the original contract.As outlined within this notice NHS England & Improvement there are a number of reasons why a new procurement process has not been possible until now, including the national pandemic which has diverted resources. Clearly a new procurement process is needed but requires sufficient time to plan for the next contract, run a new compliant procurement and then, once a new supplier is awarded the new contract, time to transition and implement the replacement contract. The new ISFE re-procurement project is a large and complex project which we expect will deliver a transformed service when compared to the current service. A change of contractor at this stage would cause significant inconvenience and have substantial duplication of cost implications as in order to compliantly replace the contractor now would require two concurrent procurement processes to be run for the same service. It would therefore be both impractical and uneconomic. The total value of this modification does not exceed 50% of the original contract value.
six.4) Procedures for review
six.4.1) Review body
NHS England
Skipton House, 80 London Road
London
SE1 6LH
Country
United Kingdom
Internet address
six.4.2) Body responsible for mediation procedures
NHS England
Quarry House
Leeds
LS2 7UE
Country
United Kingdom
Internet address
six.4.4) Service from which information about the review procedure may be obtained
NHS England
Quarry House
Leeds
LS2 7UE
Country
United Kingdom
Internet address
Section seven: Modifications to the contract/concession
seven.1) Description of the procurement after the modifications
seven.1.1) Main CPV code
- 75100000 - Administration services
seven.1.3) Place of performance
NUTS code
- UK - United Kingdom
Main site or place of performance
UKE
seven.1.4) Description of the procurement:
ISFE is a service currently provided through NHS SBS, which is a joint venture between Department of Health & Social Care (DHSC) and Sopra Steria. ISFE enables NHS England to prepare consolidated accounts.The service is mandated across the NHS England group and NHS Improvement, and is wholly funded by NHS England and NHS Improvement. Users of the current service are commissioners (CCGs, Regions), national teams and CSUs. As part of the service NHS SBS provide a “back office” function which facilitates the handling of transactions through a workflow management process and provide daily and monthly reconciliations to the group.ISFE is a national service that is used to manage the financial requirements of the NHS England Group and NHS Improvement. The service includes a reporting package known as Business Intelligence in addition to the core modules and is used by commissioning bodies to administer their financial key management and statutory obligations.
seven.1.5) Duration of the contract, framework agreement, dynamic purchasing system or concession
Start date
1 April 2021
End date
31 March 2023
seven.1.6) Information on value of the contract/lot/concession (excluding VAT)
Total value of the contract/lot/concession:
£185,700,000
seven.1.7) Name and address of the contractor/concessionaire
NHS Shared Business Services Ltd
Three, Cherry Trees Lane, Hemel Hempstead, Hertfordshire
Hemel Hempstead
HP2 7AH
Country
United Kingdom
NUTS code
- UKE - Yorkshire and the Humber
National registration number
05280446
Internet address
The contractor/concessionaire is an SME
Yes
seven.2) Information about modifications
seven.2.1) Description of the modifications
Nature and extent of the modifications (with indication of possible earlier changes to the contract):
The contract term will be extended from 01/04/2021 to 31/03/2024 at an additional cost of £59.2 million. There is no significant change to the overall scope or the services proposed under this modification.
seven.2.2) Reasons for modification
Need for additional works, services or supplies by the original contractor/concessionaire.
Description of the economic or technical reasons and the inconvenience or duplication of cost preventing a change of contractor:
Regulation 72 (1) (b) allows modifications to accommodate additional works, services or supplies by the original contractor, which have become necessary but were not included in the initial procurement, where a change of contractor cannot be made for economic or technical reasons and would cause significant inconvenience and substantial duplication of costs for the contracting authority and any increase in price also does not exceed 50% of the value of the original contract.As outlined within this notice there are a number of reasons why a new procurement process has not been possible until now, including the national pandemic which has diverted resources. Clearly a new procurement process is needed but requires sufficient time to plan for the next contract, run a new compliant procurement and then, once a new supplier is awarded the new contract, time to transition and implement the replacement contract. See VI.3.0.1 Additional information for further information.
seven.2.3) Increase in price
Updated total contract value before the modifications (taking into account possible earlier contract modifications, price adaptions and average inflation)
Value excluding VAT: £126,500,000
Total contract value after the modifications
Value excluding VAT: £185,700,000