Scope
Reference
ICT14908
Description
The project is for the procurement of SAP's Enterprise Resource Planning (ERP) cloud-based
solution 'RISE with SAP'. This are business-critical applications to provide TfL's core backoffice
business functions of finance, procurement and supply chain management and
logistics. TFL's current ERP system (called 'SAP ECC 6'), which is provided by SAP, will no
longer be supported after December 2027. TfL proposes to make a direct award to SAP (the
same provider) of a contract to provide a new ERP system 'RISE with SAP', giving access to
SAP applications supported by SAP S/4HANA and built on a hosted SaaS-like architecture
which is fully maintained by SAP and provides for improved data management and
analytics/reporting. TfL is purchasing subscriptions to different modules provided either as
'Private Cloud Tailored Option' or public cloud services.
Contract 1. SAP S/4HANA RISE with SAP
Supplier
Contract value
- £37,206,813 excluding VAT
- £44,648,175.60 including VAT
Above the relevant threshold
Date signed
31 March 2025
Contract dates
- 23 June 2025 to 22 June 2032
- 7 years
Main procurement category
Services
Options
The right to additional purchases while the contract is valid.
SAP Preferred Success helps fast track and drive value through a proactive partnership, insight-driven recommendations, release guidance, targeted learning programmes, and service-level agreements (SLA) for enhanced support.
Additional SAP environments.
Service Requests these are any additional development and/or expansion of directly related requirements which may arise in the duration of the contract.
CPV classifications
- 48451000 - Enterprise resource planning software package
- 72222300 - Information technology services
- 72260000 - Software-related services
- 72310000 - Data-processing services
- 72320000 - Database services
Contract locations
- UKI - London
Key performance indicators
| Name | Reporting frequency |
|---|---|
| SLA Reporting | 3 months |
| Quarterly Review - Service Delivery | 3 months |
| Incident Management reporting | 3 months |
Signed contract documents
CW74531 Order Form Redacted_Redacted.pdf
Other information
Conflicts assessment prepared/revised
Yes
Procedure
Procedure type
Direct award
Direct award justification
Single supplier - technical reasons
• TfL's current Enterprise Resource Planning (ERP) solution and its critical modules (for example Shift Planning, SAP Payroll and the HANA Database) are heavily customised to meet TfL's specific requirements and, without update or replacement, will be unsupportable after the end of 2027.
• TfL's reliance on the SAP-based ERP system and the operational and business-critical modules mentioned above mean that they must be updated, or replaced, so that they are supported in the long term.
• SAP will in future no longer be providing such support to its customers other than those with "RISE with SAP" beyond 23 December 2027.
• Although there is potential for SAP's resellers to provide the RISE with SAP product, this is conditional on their being approved by SAP. In addition, any reseller would commercially only be likely to provide those services if TfL were to commit to additional "wrap-around" services at extra cost (plus general on-costs).
• To use a reseller would also be sub-optimal as it would add an extra layer of contract management, together with the costs of unnecessary additional services, to the wider S/4HANA project for which it is proposed that RISE with SAP is used.
• Given that TfL's SAP ERP estate and components are highly
customised, SAP's associated experience and know-how in supporting TfL specifically is unique. Accordingly, TfL has no
option but to move from its current ECC 6 to a S4/HANA ERP solution via RISE with SAP to ensure that business-critical ERP tools, such as Shift Planning and SAP payroll, remain interoperable and can be supported in future.
• The facts explained above mean that any competition for the RISE with SAP product is effectively absent.
Supplier
SAP (UK) LIMITED
- Companies House: 02152073
- Public Procurement Organisation Number: PRVG-5171-GJBZ
Clockhouse Place
Feltham
TW14 8HD
United Kingdom
Email: ukpublicsector@sap.com
Website: http://www.sap.com/uk
Region: UKI75 - Hounslow and Richmond upon Thames
Small or medium-sized enterprise (SME): No
Voluntary, community or social enterprise (VCSE): No
Supported employment provider: No
Public service mutual: No
Contract 1. SAP S/4HANA RISE with SAP
Contracting authority
Transport for London
- Public Procurement Organisation Number: PHMT-6197-NWNZ
5 Endeavour Square
London
E20 1JN
United Kingdom
Region: UKI41 - Hackney and Newham
Organisation type: Public authority - central government