DSI Phase 2 · UK public procurement notice

Phase 1 of the Data Sharing Infrastructure (DSI) programme involved establishing a collaboration with energy sector partners to develop and test a minimum viable product (MVP). DLA Piper LLP (DLA) was appointed to support this phase and has been instrumental in developing the governance framework for data sharing, as well as drafting, negotiating and finalising the MVP Agreement with participating organisations.

Phase 2 of the programme will involve the public launch of DSI and the further development and implementation of the governance framework, participant terms and conditions, and associated legal documentation. NESO wishes to appoint DLA to lead the legal workstream for Phase 2.

DLA is considered the only appropriate supplier for this requirement due to its extensive involvement in Phase 1 and the knowledge, expertise and stakeholder relationships developed during that work.

DLA has invested significant time in developing a detailed understanding of the objectives, governance requirements, operating model and underlying technology associated with DSI. NESO has similarly invested considerable time and cost in establishing this shared understanding. Much of this knowledge has been developed through ongoing engagement and collaboration and is not fully documented. Appointing an alternative supplier would require substantial onboarding, re-briefing and knowledge transfer activities, with no guarantee that all relevant context and understanding could be replicated within the required timescales.

DLA has also co-developed key elements of the DSI governance framework and contractual arrangements during Phase 1 and is therefore uniquely placed to develop these further for Phase 2. Their involvement provides continuity between the MVP stage and public launch, reducing the risk of inconsistent interpretation of the programme's objectives, governance principles and legal requirements.

In addition, DLA has established trusted working relationships with MVP participants and key stakeholders, including Ofgem. These relationships are important to the successful delivery of Phase 2 and support efficient engagement, negotiation and implementation activities. A change of supplier would create additional delivery and commercial risk, including programme delays, duplication of effort, increased management overhead and the potential need to revisit previous decisions and assumptions.

Value for money is supported through the appointment of a supplier that can mobilise immediately and deliver efficiently without the additional cost and time associated with bringing a new supplier up to the required level of understanding. The commercial benefits of retaining DLA include reduced mobilisation time, lower internal management effort, preservation of project knowledge, reduced risk to delivery and improved continuity of governance and contractual development.

NESO considers that a direct award is permitted under one or both of the following grounds in Schedule 5 of the Procurement Act 2023:

Paragraph 6 (absence of competition for technical reasons): DLA possesses unique project-specific knowledge of the DSI governance framework, legal architecture, stakeholder positions and programme objectives developed through Phase 1. This knowledge cannot be replicated by an alternative supplier within the required timescales without significant risk to programme delivery.

Paragraph 7 (extension of existing services): The Phase 2 legal services constitute a continuation and further development of the services delivered during Phase 1. Appointing an alternative supplier would result in significant compatibility, continuity and knowledge-transfer challenges, giving rise to disproportionate technical, operational and commercial difficulties and creating duplication of effort and additional cost.

Accordingly, NESO considers a direct award to DLA to be the most efficient, proportionate and lowest-risk approach to securing delivery of the Phase 2 legal workstream.