Section one: Contracting authority/entity
one.1) Name and addresses
Health Research Authority
London
Contact
Claire Luu
Telephone
+44 2071048204
Country
United Kingdom
Region code
UK - United Kingdom
Justification for not providing organisation identifier
Not on any register
Internet address(es)
Main address
Buyer's address
Section two: Object
two.1) Scope of the procurement
two.1.1) Title
Health Research Authority Principal Operational Systems: Development, Maintenance and Support
Reference number
ITT60042
two.1.2) Main CPV code
- 72260000 - Software-related services
two.1.3) Type of contract
Services
two.2) Description
two.2.2) Additional CPV code(s)
- 48200000 - Networking, Internet and intranet software package
- 48600000 - Database and operating software package
- 48800000 - Information systems and servers
- 72200000 - Software programming and consultancy services
- 72320000 - Database services
- 72400000 - Internet services
two.2.3) Place of performance
NUTS codes
- UK - United Kingdom
two.2.4) Description of the procurement at the time of conclusion of the contract:
The contract was originally awarded for the provision of:
• Custom software development
• Technical architecture management, including software architecture design
• Production, maintenance, and enhancement of Technical documentation
• Software QA & QC
• Software development process management
• Software project management
• Issue tracking and task management software (JIRA or equivalent) hosting
• Development and testing environment provision and management
• Software deployment management
• 24/7 Windows server support and maintenance
• Microsoft Internet Information Services administration.
• Firewall management
• Provision, management, and maintenance of source control (Microsoft TFS) infrastructure
• 1st line help desk support
• Helpdesk VoIP/telephony infrastructure
• 2nd and 3rd line support
• Systems availability monitoring
• SQL Server database administration and performance tuning
• Additional professional services as required
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: 2016/S 053-088027
Section five. Award of contract/concession
Contract No
C100985 (previously CP000007)
five.2) Award of contract/concession
five.2.1) Date of conclusion of the contract/concession award decision:
24 February 2016
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
BGO Software OOD (formerly BGO Media Ltd)
Sofia
Country
Bulgaria
NUTS code
- BG - Bulgaria
Justification for not providing organisation identifier
Not on any register
Internet address
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: £3,722,400
Section six. Complementary information
six.4) Procedures for review
six.4.1) Review body
High Court
Royal Courts of Justice
London
WC2A 2LL
Telephone
+44 2079476000
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
- 72260000 - Software-related services
seven.1.2) Additional CPV code(s)
- 48600000 - Database and operating software package
- 48800000 - Information systems and servers
- 72200000 - Software programming and consultancy services
- 72320000 - Database services
seven.1.3) Place of performance
NUTS code
- UK - United Kingdom
seven.1.4) Description of the procurement:
The Contract originally covered a comprehensive range of technical services supporting custom software development and associated infrastructure, including but not limited to architecture design, QA/QC, issue tracking, software deployment, server and firewall management, database administration, and multi-tier help desk support.
This modification enables the continuation of essential software support and maintenance services pending transition to a replacement solution. The scope of services covered under this modification has been reduced from the original contract to reflect current operational needs, as certain elements of the original scope are no longer required.
seven.1.5) Duration of the contract, framework agreement, dynamic purchasing system or concession
Duration in months
137
seven.1.6) Information on value of the contract/lot/concession (excluding VAT)
Total value of the contract/lot/concession:
£8,088,486
seven.1.7) Name and address of the contractor/concessionaire
BGO Software OOD
251E Okolovrasten Pat blvd., fl. 15,
Sofia
1766
Country
Bulgaria
NUTS code
- BG - Bulgaria
Justification for not providing organisation identifier
Not on any register
Internet address
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):
The original contract award was published in the Official Journal of the European Union (OJEU) on 16 March 2016, reference number 2016/S 053-088027 (ITT60042), with a value of £3.7m. The original contract duration was three years, with options to extend by up to two further years.
In 2021, the HRA further extended the contract to 21 April 2023, valued at an additional £1.03m, to allow time to procure replacement services and ensure critical exit and transition services. The extension relied on Regulation 72(1)(e) of the Public Contracts Regulations 2015 (PCR 2015). The HRA considered that it could also have relied upon Regulation 72(1)(b) for that extension, though it chose to rely only on Regulation 72(1)(e).
In 2022, due to challenges in implementing the replacement services, the HRA revised its strategy to adopt a microservices architecture. The contract was further extended to 30 June 2025, at an additional value estimated at up to £1.672m + VAT, to allow for a further exit/migration period, the decommissioning of the existing system and the appointment of a new delivery partner to build the new microservices architecture. The HRA relied on Regulation 72(1)(b) for that extension, on the basis that the decommissioning and transition services could not be provided by another provider for technical and economic reasons and a change of supplier would cause significant inconvenience and substantial duplication of costs to the HRA, given the intricacies of the system and the planned procurement to appoint a new provider for the future provision of similar services.
The HRA then appointed a new delivery partner. The discovery phase of that delivery partner contract has made clear that the planned roadmap will not be delivered until July 2027.
The HRA therefore requires a further extension of this contract to 30 June 2027, with an option to extend by a further 3 months if needed.
This extension is being made under Regulation 72(1)(b), again on the basis that it is necessary to obtain additional services from the original contractor because a change of contractor cannot be made for technical and economic reasons given the need to continue operating the existing system, and as such any change of supplier would cause significant inconvenience and duplication of costs for the HRA.
The modification has an estimated value of £1.6m (and the sums paid further to the extension may well be lower than that), and so does not exceed 50% of the value of the original contract.
seven.2.2) Reasons for modification
Need for modification brought about by circumstances which a diligent contracting authority/entity could not foresee.
Description of the circumstances which rendered the modification necessary and explanation of the unforeseen nature of these circumstances:
The HRA research systems and platforms are at the core of HRA services. Continuity of these services is critical for the HRA to fulfil its statutory responsibilities as a health research regulator. The purpose of the HRA Research Systems digital transformation Programme (RSP) is to replace the existing research systems under the current contract.
Previous contract extensions were intended to ensure that these systems could be maintained and progressively decommissioned by the existing provider, in parallel with the RSP's planned migration to a new platform. A strategic review of the RSP in early 2022 resulted in a decision to move away from the originally planned migration approach and instead adopt a microservices architecture.
A procurement exercise for a new RSP Delivery Partner (RSPDP) in late 2022 led to the award of a new contract on 23 October 2023, with development of the new architecture initially expected to be completed within 30 months of contract commencement. However, following discovery work, the estimated completion date has been revised to July 2027.
A further extension of the existing contract is therefore required to ensure continuity of service and support the phased decommissioning of existing systems in line with the revised RSP timeline.
A new provider cannot realistically provide these services and cannot manage the decommissioning of the current systems due to their bespoke nature, the significant risk of data corruption or loss, and the business critical nature of these services.
A technical assessment was conducted in 2022 which considered the realistic interoperability issues and timescales for transition, and confirmed that a change in contractor was likely to lead to a significant disruption to services and substantial duplication of costs. Work on a data migration strategy and mapping of the analytical needs also confirmed that the existing supplier holds significant backend system knowledge that is not readily transferable.
Transitioning to a new provider would therefore not only be inconvenient and risky but would also incur substantial duplication of cost, given the time and resource the HRA would need to invest in rationalising legacy data and procuring and onboarding a new provider.
Accordingly, the HRA considers that a modification of the existing contract is permitted under Regulation 72(1)(b) of the Public Contracts Regulations 2015, due to economic and technical reasons and the risk of significant inconvenience and cost.
The price increase in relation to this extension is up to £1.6m against an original contract value of £3.7m. This is within the 50% threshold set out in Regulation 72(1)(b). N.B. the sums actually paid further to the extension may well be lower than £1.6m.
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: £6,488,486
Total contract value after the modifications
Value excluding VAT: £8,088,486