Section one: Contracting authority
one.1) Name and addresses
H M Revenue & Customs
Customs House Annexe,20 Lower Thames Street
LONDON
EC3R 6EE
Contact
Daniel Gauntlett
Telephone
+44 3000573933
Country
United Kingdom
NUTS code
UKI31 - Camden and City of London
Justification for not providing organisation identifier
Not on any register
Internet address(es)
Main address
https://www.gov.uk/government/organisations/hm-revenue-customs
one.4) Type of the contracting authority
Ministry or any other national or federal authority
one.5) Main activity
General public services
Section two: Object
two.1) Scope of the procurement
two.1.1) Title
Fujitsu Services & Fujitsu Project Services
two.1.2) Main CPV code
- 72500000 - Computer-related services
two.1.3) Type of contract
Services
two.1.4) Short description
The Authority has a requirement for various IT services to replace the Additional Services (the "Fujitsu Services") and for associated IT project services (the "Fujitsu Project Services") in circumstances where such services cannot be provided by another supplier and as a consequence the Parties are entering into this Agreement for the Fujitsu Services and Fujitsu Project Services so that these to be available to the Authority in place of the Additional Services.
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: £52,000,000
two.2) Description
two.2.2) Additional CPV code(s)
- 72100000 - Hardware consultancy services
- 72300000 - Data services
- 72500000 - Computer-related services
- 72600000 - Computer support and consultancy services
- 72700000 - Computer network services
- 72900000 - Computer back-up and catalogue conversion services
two.2.3) Place of performance
NUTS codes
- UKG - West Midlands (England)
two.2.4) Description of the procurement
IT and Project services
two.2.5) Award criteria
Price
two.2.11) Information about options
Options: No
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 services can be provided only by a particular economic operator for the following reason:
- absence of competition for technical reasons
Explanation:
HMRC is in the process of migrating and replacing certain existing applications from existing data centres. The services procured via this contract concern those data centre services and applications pending such migration and or replacement and associated project services.
Regulation 32(2)(b)(ii) of the Public Contracts Regulations 2015 ("PCR") provides that a contracting authority may award a public contract without prior publication of a Contract Notice where the services can be supplied only by a particular economic operator where competition is absent for technical reasons. Regulation 32(2)(b)(iii) of the PCR provides likewise, in order to protect exclusive rights, including intellectual property rights. Both of these grounds apply to the award of this contract to Fujitsu Services Ltd (the "Contractor") for the reasons explained below.
A change to a different contractor cannot be made for these services because the HMRC applications concerned are hosted and/or operated by the Contractor on the Contractor's infrastructure in the Contractor's data centres with connectivity provided by the Contractor. It would not be possible for another contractor to take over or provide these services using the original Contractor's infrastructure and hosting before they are migrated to HMRC's new replacement infrastructure in Crown data centres and or to the new cloud-based solutions which are is being provided under a new contract between HMRC and its other suppliers. Also, some of the services required, before the move is complete, are built with and or use the Contractor's unique intellectual property rights and this could not be supplied by a third-party.
Even if it were technically possible to have a new contractor provide some of the services under this contract, the costs of providing them before migration to the new solutions would be wholly uneconomic and disproportionate as it would involve wasted expenditure on replicating existing infrastructure and services in another location for a very short period before the new replacement services are adopted and the move completed. An example of why this would be uneconomic is that it would need to involve the re-procurement of hardware and licenses on behalf of HMRC which are used in connection with the existing services and require support for such hardware and software already supported in existing data centres. HMRC would have to re-procure substantial equipment, connectivity and services which would be an unnecessary duplication of costs. The Contractor would not allow access to and operation of HMRC services currently located in their data centres by a third-party, (i.e. a new HMRC contractor).
The majority of servers utilised to deliver the additional services to HMRC are physical and ageing assets owned by the Contractor which are beyond their refresh point and the removal/migration of these assets represent a high risk to the continued critical operation of HMRC's services and systems. The Contractor also maintains a parts supply to fix the existing server estate when required. Due to the age of many servers, these parts are not generally available.
four.1.8) Information about the Government Procurement Agreement (GPA)
The procurement is covered by the Government Procurement Agreement: No
Section five. Award of contract
Title
Fujitsu Services & Fujitsu Project Services
A contract/lot is awarded: Yes
five.2) Award of contract
five.2.1) Date of conclusion of the contract
30 September 2022
five.2.2) Information about tenders
Number of tenders received: 1
The contract has been awarded to a group of economic operators: No
five.2.3) Name and address of the contractor
Fujitsu Services Ltd
Bracknell
Country
United Kingdom
NUTS code
- UKJ - South East (England)
Companies House
00096056
The contractor is an SME
No
five.2.4) Information on value of contract/lot (excluding VAT)
Total value of the contract/lot: £52,000,000
Section six. Complementary information
six.4) Procedures for review
six.4.1) Review body
Cabinet Office
London
Country
United Kingdom