Contract

EUC service contract modification and extension

  • Post Office Limited

F20: Modification notice

Notice identifier: 2024/S 000-030502

Procurement identifier (OCID): ocds-h6vhtk-049d5a

Published 24 September 2024, 2:45pm



Section one: Contracting authority/entity

one.1) Name and addresses

Post Office Limited

100 Wood Street

London

EC2V 7ER

Email

procurement@postoffice.co.uk

Country

United Kingdom

Region code

UK - United Kingdom

Companies House

02154540

Internet address(es)

Main address

https://www.postoffice.co.uk/


Section two: Object

two.1) Scope of the procurement

two.1.1) Title

EUC service contract modification and extension

two.1.2) Main CPV code

  • 72000000 - IT services: consulting, software development, Internet and support

two.1.3) Type of contract

Services

two.2) Description

two.2.3) Place of performance

NUTS codes
  • UK - United Kingdom
Main site or place of performance

UK wide

two.2.4) Description of the procurement at the time of conclusion of the contract:

Modification to notice published September 2021

https://www.contractsfinder.service.gov.uk/notice/e07590f9-07d8-4864-957e-dd717acc86b2?origin=SearchResults&p=1

Contract modification and extension.

Call-off from CCS Technology Services 2 Framework

two.2.7) Duration of the contract, framework agreement, dynamic purchasing system or concession

Duration in months

60


Section four. Procedure

four.2) Administrative information

four.2.1) Contract award notice concerning this contract

Notice number: 2017/S 221-459586


Section five. Award of contract/concession

Contract No

C101412

five.2) Award of contract/concession

five.2.1) Date of conclusion of the contract/concession award decision:

9 September 2024

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

Entserv UK Limited

Aldershot

Country

United Kingdom

NUTS code
  • UK - United Kingdom
Companies House

00053419

The contractor/concessionaire is an SME

No

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: £48,712,573


Section six. Complementary information

six.3) Additional information

Contract modification and extension.

Original award of call-off contract from the Crown Commercial Service Technology Services 2 Framework, Lot 3, for End User Compute Services published 21 September 2021.

POL is enacting it's extension option under the original award for a further 2 years taking the total contract length to 60 months.

POL is also making modifications under PCR regulations 72(i)(b) totalling £14,002,744 to account for additional services required during the life of the contract, which while included within the scope and description of the contract were not included in the value.

The new services relate to increases in users during the course of the contract and project work required to maintain the EUC estate.

six.4) Procedures for review

six.4.1) Review body

Royal Courts of Justice

London

Country

United Kingdom


Section seven: Modifications to the contract/concession

seven.1) Description of the procurement after the modifications

seven.1.1) Main CPV code

  • 72000000 - IT services: consulting, software development, Internet and support

seven.1.3) Place of performance

NUTS code
  • UK - United Kingdom

seven.1.4) Description of the procurement:

End User Compute managed service across POL colleague and branch estate.

Call-off from Crown Commercial Services Technology Services 2 Framework

Notice published September 2021

https://www.contractsfinder.service.gov.uk/notice/e07590f9-07d8-4864-957e-dd717acc86b2?origin=SearchResults&p=1

seven.1.5) Duration of the contract, framework agreement, dynamic purchasing system or concession

Duration in months

60

seven.1.6) Information on value of the contract/lot/concession (excluding VAT)

Total value of the contract/lot/concession:

£48,712,573

seven.1.7) Name and address of the contractor/concessionaire

Entserv UK Limited

Aldershot

Country

United Kingdom

NUTS code
  • UK - United Kingdom
Companies House

00053419

The contractor/concessionaire is an SME

No

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):

POL is enacting it's extension option under the original award for 2 years taking the total contract length to 60 months.

POL is also making modifications under PCR regulations 72(i)(b) totalling £14,002,744 to account for additional services needed during the life of the contract, which were included within the scope and description of the contract but not in the value.

The new services relate to increases in users during the course of the contract and project work required to maintain the EUC estate.

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:

POL is modifying the contract under regulation 72(1)(b) of the Public Contracts Regulations 2015 because additional services have become necessary, a change in contractor cannot be made for technical reasons, would cause significant inconvenience and/or substantial duplication of costs, and the modification is less than 50% of the original contract's value.

The additional services have become necessary because: (i) user numbers have been higher; and (ii) there has been a higher volume of project work, within the scope of the originally awarded contract than anticipated when it was competed. Issues covered by these services include label printer failures and replacements and deployment of new PIN pads across the estate and logistical support on branch technology updates.

A change in EUC contractor could not be made for technical reasons because appointing an alternative would have caused interoperability issues between services provided by the current EUC provider and the alternative supplier. There would be two EUC suppliers managing the same estate in tandem resulting in an increase in service risk for POL. The current contractor has know-how that a new supplier would have to develop to provide an in-tandem service. For example, the current contractor has a pre-existing understanding of the network and its network vetted engineers are already established to support POL's EUC needs.

POL would be caused significant inconvenience and/or substantial duplication of costs in the dual management of the services, the additional supplier integration into Post Office's supplier management and change management processes and management and provision of additional field engineering services. In relation to the PIN pads, the supplier has in place a PCI compliant chain of custody process to manage the estate which would need to be duplicated and assessed in an alternative provider. An alternative EUC supplier would have to develop this capability. Furthermore, POL would be paying to sustain two separate networks of vetted engineers in tandem. These activities would be a substantial duplication of costs for POL.

These changes represent 40% of the original contract value.

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: £14,002,044

Total contract value after the modifications

Value excluding VAT: £48,712,573