EUC service contract modification and extension

Contracts

• Contract 030502-2024-C101412-1 · ENTSERV UK LIMITED

  Signed

  9 Sept 2024

  Value

  £48,712,573

  Status

  active

  • Change POL is enacting it's extension option under the original award for 2 years taking the total contract length to 60 months. POL is also making modifications under PCR regulations 72(i)(b) totalling £14,002,744 to account for additional services needed during the life of the contract, which were included within the scope and description of the contract but not in the value. The new services relate to increases in users during the course of the contract and project work required to maintain the EUC estate., Need for additional works, services or supplies by the original contractor/concessionaire: POL is modifying the contract under regulation 72(1)(b) of the Public Contracts Regulations 2015 because additional services have become necessary, a change in contractor cannot be made for technical reasons, would cause significant inconvenience and/or substantial duplication of costs, and the modification is less than 50% of the original contract's value. The additional services have become necessary because: (i) user numbers have been higher; and (ii) there has been a higher volume of project work, within the scope of the originally awarded contract than anticipated when it was competed. Issues covered by these services include label printer failures and replacements and deployment of new PIN pads across the estate and logistical support on branch technology updates. A change in EUC contractor could not be made for technical reasons because appointing an alternative would have caused interoperability issues between services provided by the current EUC provider and the alternative supplier. There would be two EUC suppliers managing the same estate in tandem resulting in an increase in service risk for POL. The current contractor has know-how that a new supplier would have to develop to provide an in-tandem service. For example, the current contractor has a pre-existing understanding of the network and its network vetted engineers are already established to support POL's EUC needs. POL would be caused significant inconvenience and/or substantial duplication of costs in the dual management of the services, the additional supplier integration into Post Office's supplier management and change management processes and management and provision of additional field engineering services. In relation to the PIN pads, the supplier has in place a PCI compliant chain of custody process to manage the estate which would need to be duplicated and assessed in an alternative provider. An alternative EUC supplier would have to develop this capability. Furthermore, POL would be paying to sustain two separate networks of vetted engineers in tandem. These activities would be a substantial duplication of costs for POL. These changes represent 40% of the original contract value.

Dispute resolution & review bodies

• Royal Courts of JusticeReview body London