Section one: Contracting authority/entity
one.1) Name and addresses
MINISTRY OF DEFENCE
Holderness House,51-61 Clifton Street
LONDON
EC2A4DW
Country
United Kingdom
NUTS code
UK - United Kingdom
Justification for not providing organisation identifier
Not on any register
Internet address(es)
Main address
https://www.gov.uk/government/organisations/ministry-of-defence
one.4) Type of the contracting authority
Ministry or any other national or federal authority
one.5) Main activity
Defence
Section two: Object
two.1) Scope of the procurement
two.1.1) Title
Provision of Payroll & Expenses Systems Integrator
two.1.2) Main CPV code
- 72600000 - Computer support and consultancy services
two.1.3) Type of contract
Services
two.1.4) Short description
Provision of a System Integrator to implement Oracle Human Capital Management Payroll and Oracle Expenses
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: £3,900,000
two.2) Description
two.2.3) Place of performance
NUTS codes
- UK - United Kingdom
two.2.4) Description of the procurement
Professional and technical support from a System Integrator to implement Oracle Human Capital Management Payroll and Oracle Expenses system.
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 procurement falls outside the scope of application of the regulations
Explanation:
The Defence Business Services Team part of the Ministry of Defence (the "Authority") intends to amend a contract with Deloitte for the provision of Cloud and Payroll Integration services by amending both the design requirement and the term of the contract. The additional design services and five months extension of the contract has an estimated value of a total of £3.9 million.
In accordance with the provisions of The Public Procurement (Amendment etc.) (EU Exit) Regulations 2020 SI No. 2020/1319, this procurement falls to be regulated under the provisions of the Public Contracts Regulations 2015 as amended (in particular by SI 2020/1319). Prior publication of a contract notice in the Official Journal of the European Union is no longer appropriate. It is considered that the amendment of the contract without prior publication of a contract notice in the UK e-notification service (in accordance with the relevant legislation) is lawful in accordance with regulation 32(b)(ii) of the PCR 2015 because competition is absent for technical reasons.
The amendments to the services include both changes to the design and scope of the services to be provided which have been necessitated by unforeseen mandated legislative changes imposed by relevant UK legislation and also the postponement of [and amendment to] legacy migration services. As a result of the additional time required to implement these changes, and the requirement to de-risk delivery due to known events which impact delivery (such as known MOD pay awards and dependant Oracle system upgrades), the additional service of migrating legacy data onto the new system has to be amended and implementation delayed until the earliest time by which the Authority reasonably considers it safe to do so as to minimise the impact to the Authority's continuing payroll and expenses obligations.
Whilst it may be possible in theory to compete the additional design services and subsequent legacy data migration services and award to a third party provider this cannot be achieved in the short timeframe available without considerable integration and interoperability risk with services already provided by Deloittes nor without substantial inconvenience and additional cost to the Authority. Furthermore, only Deloittes have the current specific functional and technical know-how of the Authority's Payroll, as well as use tools available to support data migration and Payroll Comparison Testing, used to date, to verify and validate and assure the current build and provide further assurance once the mandated changes are made within the necessary timeframe.
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
24 November 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
Deloitte LLP
London
Country
United Kingdom
NUTS code
- UK - United Kingdom
Companies House
OC303675
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: £3,900,000
Section six. Complementary information
six.4) Procedures for review
six.4.1) Review body
Ministry of Defence
London
Country
United Kingdom