Section one: Contracting authority/entity
one.1) Name and addresses
Digital Health & Care Wales (DHCW)
Ty Glan-yr-Afon, 21 Cowbridge Road East
Cardiff
CF119AD
Contact
Robert Type
Telephone
+44 2920500500
Country
United Kingdom
NUTS code
UK - United Kingdom
Internet address(es)
Main address
Buyer's address
https://www.sell2wales.gov.wales/search/Search_AuthProfile.aspx?ID=AA81853
Section two: Object
two.1) Scope of the procurement
two.1.1) Title
Date Centre One (DC1)
Reference number
P668
two.1.2) Main CPV code
- 72700000 - Computer network services
two.1.3) Type of contract
Services
two.2) Description
two.2.2) Additional CPV code(s)
- 72700000 - Computer network services
- 72710000 - Local area network services
- 72720000 - Wide area network services
- 72400000 - Internet services
two.2.3) Place of performance
NUTS codes
- UKL - Wales
Main site or place of performance
Wales, United Kingdom
two.2.4) Description of the procurement at the time of conclusion of the contract:
In December 2020, NHS Wales Informatics Service (“NWIS”), the predecessor organisation to Digital Health and Care Wales (“DHCW”), undertook a cross-lot competitive procurement process – by way of mini-competition – pursuant to the Crown Commercial Services Technology Services 2 Framework Agreement (RM3804) – Lot 2 (Transition and Transformation) and Lot 3b (Operational Management) for the provision of Tier 3 data centre (“DC1”) with co-location capacity in South Wales to host DHCW’s servers and equipment (including transition services to move equipment from a previous data to the new data center location).
As a result of the mini-competition, DHCW awarded the call-off contract to CDW Limited and entered into the call-off contract with CDW Limited (“CDW”)(the “Call-Off Contract”). The Call-Off Contract was for a period of 5-years from 4th February 2021 to 3rd February 2026.
The Contract was awarded for a period of five (5) years - 4th February 2021 to 3rd February 2026.
two.2.7) Duration of the contract, framework agreement, dynamic purchasing system or concession
Duration in months
60
In the case of framework agreements, provide justification for any duration exceeding 4 years
N/A
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.2) Administrative information
four.2.1) Contract award notice concerning this contract
Notice number: 2021/S 000-123456
Section five. Award of contract/concession
Contract No
P668
Title
Date Centre One (DC1)
five.2) Award of contract/concession
five.2.1) Date of conclusion of the contract/concession award decision:
4 February 2021
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
CDW Limited
10 Fleet Place
London
EC4M7RB
Telephone
+44 2077916000
Fax
+44 2077916001
Country
United Kingdom
NUTS code
- UK - United Kingdom
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: £3,925,022
Section six. Complementary information
six.3) Additional information
N/A
(WA Ref:158196)
six.4) Procedures for review
six.4.1) Review body
High Court
Royal Courts of Justice, The Strand
London
WC2A 2LL
Telephone
+44 2079477501
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
- 72700000 - Computer network services
seven.1.2) Additional CPV code(s)
- 72710000 - Local area network services
- 72720000 - Wide area network services
- 72400000 - Internet services
seven.1.3) Place of performance
NUTS code
- UKL - Wales
Main site or place of performance
Wales
seven.1.4) Description of the procurement:
DHCW intends to enter into a deed of variation (“DoV”) with CDW to extend the duration of the existing Call-off Contract for a further 3 years to 3 February 2029 (the “Variation”).
The Call Off Contract was originally procured pursuant to a mini-competition under Lot 2 and 3B the Crown Commercial Services Technology Services 2 Framework Agreement (reference RM3804) and is governed by the Public Contracts Regulations 2015 (“PCR 2015”).
In accordance with Welsh Government’s cloud first policy, DHCW is in the process of migrating from on-premises servers to cloud servers with such transition to be completed by October 2028. This will include migrating from on-premises servers at DC1 to cloud storage.
As such, DHCW requirement for data centre hosting of its on-premises servers is reducing and DHCW aim to have fully transitioned to cloud hosting and storage by October 2028. This will include migrating from the on-premises servers located at DC1 to cloud storage (with a diminishing on-premise footprint between now and then).
The Variation is required for the following reasons:
- To provide DHCW with sufficient time to complete its activities set out in the Cloud Transition Programme, which is estimated to take circa thirty-six (36) months due to the complexity of the work and the involvement of multiple parties in the work
- To enable DHCW to maintain two (2) data centres at all times (to ensure operational resilience) until all equipment can be migrated to the public cloud, albeit with a reducing footprint.
- To ensure there are no disruptions to the delivery of key clinical operational services to NHS Wales, which could negatively impact on the delivery of patient care.
- To ensure that the Cloud migration remains a focal priority and not a Data Centre transition.
- To ensure reputational damage is minimised in the event of a major incident/service failure.
Due to the likely procurement, transition and implementation period involved (estimated at around a total of 18 to 24 months), it would not be possible nor practical for DHCW to procure and enter into new contracts with other suppliers for the period up to October 2028 requiring migration of the physical servers from DC1 to an alternate data centre where DHCW’s on-premise footprint will be reducing during that period and where any such contract, even once implemented, would be operational for a limited period of time prior to decommissioning of any remaining on-premise servers and/or could give rise to technical issues and risk continuity and stability of patient critical services.
As such, DHCW intends to extend the Call Off Contract for a period of 3 years to secure the continued provision of services at DC1 which will allow DHCW time to complete the transition to cloud storage and associated reduction of on-premise footprint.
seven.1.5) Duration of the contract, framework agreement, dynamic purchasing system or concession
Duration in months
36
In the case of framework agreements, provide justification for any duration exceeding 4 years:
N/A
seven.1.6) Information on value of the contract/lot/concession (excluding VAT)
Total value of the contract/lot/concession:
£1,621,442.88
seven.1.7) Name and address of the contractor/concessionaire
CDW Limited
10 Fleet Place
London
EC4M7RB
Telephone
+44 2077916000
Fax
+44 2077916001
Country
United Kingdom
NUTS code
- UK - United Kingdom
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):
DHCW intends to enter into a deed of variation (“DoV”) with CDW to extend the duration of the existing Call-off Contract for a further 3 years to 3 February 2029 (the “Variation”).
The Call Off Contract was originally procured pursuant to a mini-competition under Lot 2 and 3B the Crown Commercial Services Technology Services 2 Framework Agreement (reference RM3804) and is governed by the Public Contracts Regulations 2015 (“PCR 2015”).
In accordance with Welsh Government’s cloud first policy, DHCW is in the process of migrating from on-premises servers to cloud servers with such transition to be completed by October 2028. This will include migrating from on-premises servers at DC1 to cloud storage.
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:
Description of the economic or technical reasons and the inconvenience or duplication of cost preventing a change of contractor:
This Contract Modification Notice gives notice that DHCW is to enter into a DoV with CDW to modify the Call Off Contract, the effect of which will be to extend the duration of the Call Off Contract by a further 36 months to 3rd February 2029.
A further procurement procedure is not necessary on the basis that the award of the modification is permitted pursuant regulations 72(1)(b) and/or (e) of PCR 2015 for the reasons set out below.
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: £3,925,022
Total contract value after the modifications
Value excluding VAT: £5,546,464.88