Fujitsu Services & Fujitsu Project Services

CPV: Computer back-up and catalogue conversion services · Computer network services · Computer support and consultancy services · Computer-related services · Data services · Hardware consultancy services

Procedure method

Award procedure without prior publication of a call for competition

Legal basis

CELEX · 32014L0024 Public Contracts Regulations 2015 (Directive 2014/24/EU)

Procurement category

Services

Notice status

Awarded without competition

Procurement threshold

Unspecified in notice

Regulatory regime

Standard

Commercial structure

Stand-alone contract (no framework)

Competition type

Direct award (no call for competition)

GPA / WTO covered

Unspecified in notice

Recurring procurement

Unspecified in notice

First published

21 Oct 2022, 16:21 BST

Last source update

5 Nov 2024, 11:55 GMT

FTS notice number

2024/S 000-035773

Classification (CPV)

Computer back-up and catalogue conversion servicesComputer network servicesComputer support and consultancy servicesComputer-related servicesData servicesHardware consultancy services

Delivery area

West Midlands (UKG)

Official registry OCID

ocds-h6vhtk-03780f Find a Tender

Why no open competition

The works, supplies or services can be provided only by a particular economic operator due to absence of competition for technical reasons

Published justification

HMRC is in the process of migrating and replacing certain existing applications from existing data centres. The services procured via this contract concern those data centre services and applications pending such migration and or replacement and associated project services.

Regulation 32(2)(b)(ii) of the Public Contracts Regulations 2015 ("PCR") provides that a contracting authority may award a public contract without prior publication of a Contract Notice where the services can be supplied only by a particular economic operator where competition is absent for technical reasons. Regulation 32(2)(b)(iii) of the PCR provides likewise, in order to protect exclusive rights, including intellectual property rights. Both of these grounds apply to the award of this contract to Fujitsu Services Ltd (the "Contractor") for the reasons explained below.

A change to a different contractor cannot be made for these services because the HMRC applications concerned are hosted and/or operated by the Contractor on the Contractor's infrastructure in the Contractor's data centres with connectivity provided by the Contractor. It would not be possible for another contractor to take over or provide these services using the original Contractor's infrastructure and hosting before they are migrated to HMRC's new replacement infrastructure in Crown data centres and or to the new cloud-based solutions which are is being provided under a new contract between HMRC and its other suppliers. Also, some of the services required, before the move is complete, are built with and or use the Contractor's unique intellectual property rights and this could not be supplied by a third-party.

Even if it were technically possible to have a new contractor provide some of the services under this contract, the costs of providing them before migration to the new solutions would be wholly uneconomic and disproportionate as it would involve wasted expenditure on replicating existing infrastructure and services in another location for a very short period before the new replacement services are adopted and the move completed. An example of why this would be uneconomic is that it would need to involve the re-procurement of hardware and licenses on behalf of HMRC which are used in connection with the existing services and require support for such hardware and software already supported in existing data centres. HMRC would have to re-procure substantial equipment, connectivity and services which would be an unnecessary duplication of costs. The Contractor would not allow access to and operation of HMRC services currently located in their data centres by a third-party, (i.e. a new HMRC contractor).

The majority of servers utilised to deliver the additional services to HMRC are physical and ageing assets owned by the Contractor which are beyond their refresh point and the removal/migration of these assets represent a high risk to the continued critical operation of HMRC's services and systems. The Contractor also maintains a parts supply to fix the existing server estate when required. Due to the age of many servers, these parts are not generally available.

• Fujitsu Services LtdAwarded supplierGB-COH: 00096056 Bracknell, South East

No document links were published on the notice.