Award

Merchant Acquirer Services

  • Transport For Greater Manchester

F15: Voluntary ex ante transparency notice

Notice identifier: 2021/S 000-019583

Procurement identifier (OCID): ocds-h6vhtk-02d3ee

Published 12 August 2021, 12:35pm



Section one: Contracting authority/entity

one.1) Name and addresses

Transport For Greater Manchester

2 Piccadilly Place

MANCHESTER

M13BG

Contact

Jade Rawlinson

Email

procurement@tfgm.com

Country

United Kingdom

NUTS code

UKD - North West (England)

Internet address(es)

Main address

www.tfgm.com

one.4) Type of the contracting authority

Other type

Transport Authority

one.5) Main activity

Other activity

Transport


Section two: Object

two.1) Scope of the procurement

two.1.1) Title

Merchant Acquirer Services

two.1.2) Main CPV code

  • 66172000 - Financial transaction processing and clearing-house services

two.1.3) Type of contract

Services

two.1.4) Short description

TfGM has a range of strategic priorities that impact on the need for merchant acquirer services, including 'PAYGO' contactless payments on Metrolink trams, cycle hire and bus reform. Given the criticality of these projects, their associated programmes and project timeframes, and due to the very close interaction of the payment processing / merchant acquirer services with other systems operated by TfGM, a change in supplier at this point in the programmes mentioned above (amongst others) would add significant risk to the continued provision of payment solutions and services across TfGM, taking into account the complexity of the requirements and the integration required. Most significantly, the contactless payments solution would require significant rework and regression testing for the processing of transit payments. Payment processing for transit is far more inherently complex than for other payment channels, and suppliers of the other systems that need to interact with the payment processing /merchant acquirer services have their own specifications to meet the card schemes requirements for transit.

It is highly likely that any new supplier of payment processing / merchant acquirer services would be required to re-accredit the contactless scheme. This end-to-end process would take a period of time and require significant interaction with other suppliers in the payments process, and adds significant risk of disruption to existing customer facing services on TfGM's Metrolink and Drivesafe services.

Appointing a new supplier would also provide challenges with respect to 'waivers' that have previously been agreed between the card schemes and the current supplier. Again, this would require significant time to ensure the same waivers would remain in place, and would add risk to the timescales associated with the franchised bus network, as well as maintaining provision on the existing Metrolink payment schemes. It is therefore the intention of TfGM to progress these programmes to move to an operational environment, gather data on customer card payments, and engage with the market once the schemes are in operation.

two.1.6) Information about lots

This contract is divided into lots: No

two.1.7) Total value of the procurement (excluding VAT)

Lowest offer: £550,000 / Highest offer: £1,000,000 taken into consideration

two.2) Description

two.2.3) Place of performance

NUTS codes
  • UKD3 - Greater Manchester
Main site or place of performance

Manchester

two.2.4) Description of the procurement

Merchant Acquirer Services associated with card payments.

two.2.11) Information about options

Options: Yes

Description of options

Contract extension is based on a 3+1+1 basis.


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:

TfGM is making an award of a contract without prior publication of a call for competition on Find a Tender Service as a change of contractor-

(i) cannot be made for economic or technical reasons such as requirements of interchangeability or interoperability with existing equipment, software, services or installations procured under the initial procurement; and

(ii) would cause significant inconvenience or substantial duplication of costs for the utility.

Explanation:

TfGM has a range of strategic priorities that impact on the need for merchant acquirer services, including 'PAYGO' contactless payments on Metrolink trams, cycle hire and bus reform. Given the criticality of these projects, their associated programmes and project timeframes, and due to the very close interaction of the payment processing / merchant acquirer services with other systems operated by TfGM, a change in supplier at this point in the programmes mentioned above (amongst others) would add significant risk to the continued provision of payment solutions and services across TfGM, taking into account the complexity of the requirements and the integration required. Most significantly, the contactless payments solution would require significant rework and regression testing for the processing of transit payments. Payment processing for transit is far more inherently complex than for other payment channels, and suppliers of the other systems that need to interact with the payment processing /merchant acquirer services have their own specifications to meet the card schemes requirements for transit.

It is highly likely that any new supplier of payment processing / merchant acquirer services would be required to re-accredit the contactless scheme. This end-to-end process would take a period of time and require significant interaction with other suppliers in the payments process, and adds significant risk of disruption to existing customer facing services on TfGM's Metrolink and Drivesafe services.

Appointing a new supplier would also provide challenges with respect to 'waivers' that have previously been agreed between the card schemes and the current supplier. Again, this would require significant time to ensure the same waivers would remain in place, and would add risk to the timescales associated with the franchised bus network, as well as maintaining provision on the existing Metrolink payment schemes. It is therefore the intention of TfGM to progress these programmes to move to an operational environment, gather data on customer card payments, and engage with the market once the schemes are in operation.

four.1.8) Information about the Government Procurement Agreement (GPA)

The procurement is covered by the Government Procurement Agreement: Yes


Section five. Award of contract/concession

A contract/lot is awarded: Yes

five.2) Award of contract/concession

five.2.1) Date of conclusion of the contract

22 July 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

Barclays Bank Plc

London

Country

United Kingdom

NUTS code
  • UKI - London
The contractor/concessionaire is an SME

No

five.2.4) Information on value of contract/lot/concession (excluding VAT)

Lowest offer: £550,000 / Highest offer: £1,000,000 taken into consideration


Section six. Complementary information

six.4) Procedures for review

six.4.1) Review body

Transport for Greater Manchester

Manchester

Email

procurement@tfgm.com

Country

United Kingdom