Section one: Contracting authority/entity
one.1) Name and addresses
Ministry of Justice
102 Petty France
London
SW1H 9AJ
Contact
Myles Scholfield
myles.scholfield@justice.gov.uk
Telephone
+44 02033343555
Country
United Kingdom
NUTS code
UK - United Kingdom
Internet address(es)
Main address
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
Hosting Services
two.1.2) Main CPV code
- 72000000 - IT services: consulting, software development, Internet and support
two.1.3) Type of contract
Services
two.1.4) Short description
Provision of centralised hosting for business applications, in existing data centres, prior to such business applications being retired, replaced, or migrated to an alternative hosting solution.
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: £39,963,000
two.2) Description
two.2.3) Place of performance
NUTS codes
- UK - United Kingdom
Main site or place of performance
Nationally, to include MoJ headquarters, HM Courts & Tribunals Service (HMCTS) centres, and a range of other locations
two.2.4) Description of the procurement
Provision of centralised hosting for business applications used by HMCTS, from existing data centres, until such business applications are replaced, retired, or migrated to alternative hosting.
two.2.11) Information about options
Options: No
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.1) Description
four.1.1) Type of procedure
Negotiated without a prior call for competition
- The works, supplies or services can be provided only by a particular economic operator for the following reason:
- absence of competition for technical reasons
Explanation:
The Authority relies on Regulation 32(2)(b)(ii) (Use of negotiated procedure without prior publication) of the Public Contracts Regulations 2015. The services can only be provided by the incumbent supplier, CGI IT UK Limited, because competition is absent for technical reasons, no reasonable alternative or substitute exists and the absence of competition is not the result of an artificial narrowing down of the parameters of the procurement for the following reasons:
(a) The Authority assets managed under the contract include numerous physical servers, virtual servers, and other devices, including firewalls, network switches and storage infrastructure. Few of these physical technology assets are less than 10 years old and there is a scarcity of expertise in the marketplace for supporting these legacy technologies. Replacement parts are also extremely scarce, which can result in material delays to resuming service in case of failure, causing extended outage to critical business services.
(b) The age of the underlying hardware and software assets means that the legacy applications hosted in the current environment cannot be migrated to an alternative hosting environment without major software remediation work. There are applications that have business value and work to carry out this remediation in-situ and migration to an alternative hosting solution has already started and needs to continue. Migrating these applications before carrying out remediation work requires a double-hop migration which would result in a significant risk of service failure and costs. Other applications that will retire within the contract term will be decommissioned in place rather than incur significant time, cost, technical difficulty and technical risk in moving the applications and then decommissioning them. Within the term of the contract all application services will cease to be provided from the current hosting environment and the environment itself will be retired and decommissioned, including all physical technology assets managed under the contract.
(c) Engaging an alternative supplier would lead to a substantial delay to the retiring and decommissioning the legacy hosting environment. This delay would increase exposure to the risk of extended outage to the critical business services provided by these applications. This would also involve a duplication of cost because the current data centres would need to be operational until all of the applications have been migrated to an alternative platform or decommissioned.
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/concession
A contract/lot is awarded: Yes
five.2) Award of contract/concession
five.2.1) Date of conclusion of the contract
31 October 2022
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
CGI IT UK Limited
14th Floor, 20 Fenchurch Street, EC3M 3BY
London
Country
United Kingdom
NUTS code
- UK - United Kingdom
The contractor/concessionaire is an SME
No
five.2.4) Information on value of contract/lot/concession (excluding VAT)
Total value of the contract/lot/concession: £39,963,000
five.2.5) Information about subcontracting
The contract/lot/concession is likely to be subcontracted
Section six. Complementary information
six.3) Additional information
The initial term of the contract is for approximately 18 months ending on 18.05.2024, with an option to extend for a further period of twelve (12) months. The contract includes the ability for the Authority to remove services from scope as and when required and therefore it will have a reducing scope as applications are migrated and retired. It is currently envisaged that if the extension option is exercised this will be to cover the remaining services that have not yet been decommissioned or migrated and to close the environment in its entirety.
The estimated total value for this contract is up to £39,963,000 (including indexation and excluding VAT) depending on whether the 12-month extension option is exercised, and the order and timing of services being removed from scope. The extension may not be necessary, and services will be removed from scope over the term, so the actual cost of this contract may be lower than the estimated maximum contract value.
six.4) Procedures for review
six.4.1) Review body
High Court
Royal Courts of Justice, Strand London
London
WC2A2LL
Country
United Kingdom
six.4.2) Body responsible for mediation procedures
High Court
Royal Courts of Justice, Strand
London
WC2A2LL
Country
United Kingdom
six.4.4) Service from which information about the review procedure may be obtained
HIgh Court
Royal Courts of Justice, Strand
London
WC2A2LL
Country
United Kingdom