Find a TenderAwarded without competition
Published 12 Aug 2021, 12:35 BST

Official UK procurement notice

Merchant Acquirer Services · UK public procurement notice

Official notice

Authority: Transport for Greater Manchester (Public body)

ServicesAward procedure without prior publication of a call for competition
Budget not disclosedValue not published
Awarded 22 Jul 2021no call for competition
Awarded to Barclays Bank PLC

What is being bought

Published requirement description

TfGM has a range of strategic priorities that impact on the need for merchant acquirer services, including 'PAYGO' contactless payments on Metrolink trams, cycle hire and bus reform. Given the criticality of these projects, their associated programmes and project timeframes, and due to the very close interaction of the payment processing / merchant acquirer services with other systems operated by TfGM, a change in supplier at this point in the programmes mentioned above (amongst others) would add significant risk to the continued provision of payment solutions and services across TfGM, taking into account the complexity of the requirements and the integration required. Most significantly, the contactless payments solution would require significant rework and regression testing for the processing of transit payments. Payment processing for transit is far more inherently complex than for other payment channels, and suppliers of the other systems that need to interact with the payment processing /merchant acquirer services have their own specifications to meet the card schemes requirements for transit.

It is highly likely that any new supplier of payment processing / merchant acquirer services would be required to re-accredit the contactless scheme. This end-to-end process would take a period of time and require significant interaction with other suppliers in the payments process, and adds significant risk of disruption to existing customer facing services on TfGM's Metrolink and Drivesafe services.

Appointing a new supplier would also provide challenges with respect to 'waivers' that have previously been agreed between the card schemes and the current supplier. Again, this would require significant time to ensure the same waivers would remain in place, and would add risk to the timescales associated with the franchised bus network, as well as maintaining provision on the existing Metrolink payment schemes. It is therefore the intention of TfGM to progress these programmes to move to an operational environment, gather data on customer card payments, and engage with the market once the schemes are in operation.

CPV: Financial transaction processing and clearing-house services

The lotProcurement structure

single lot · no lot value published
Lot #1Merchant Acquirer Services associated with card payments
Delivery: North West · Manchester
Extensions: Contract extension is based on a 3+1+1 basis.

Procedure terms & legal framework

From the official record
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
Yes (GPA)
Recurring procurement
Unspecified in notice
First published
12 Aug 2021, 12:35 BST
Last source update
12 Aug 2021, 12:35 BST
FTS notice number
2021/S 000-019583
Classification (CPV)
Financial transaction processing and clearing-house services
Delivery area
North West (UKD3)
Official registry OCID
ocds-h6vhtk-02d3ee Find a Tender
Why no open competition
The procurement falls outside the scope of application of the directive
Published justification

TfGM is making an award of a contract without prior publication of a call for competition on Find a Tender Service as a change of contractor-

(i) cannot be made for economic or technical reasons such as requirements of interchangeability or interoperability with existing equipment, software, services or installations procured under the initial procurement; and

(ii) would cause significant inconvenience or substantial duplication of costs for the utility.

Explanation:

TfGM has a range of strategic priorities that impact on the need for merchant acquirer services, including 'PAYGO' contactless payments on Metrolink trams, cycle hire and bus reform. Given the criticality of these projects, their associated programmes and project timeframes, and due to the very close interaction of the payment processing / merchant acquirer services with other systems operated by TfGM, a change in supplier at this point in the programmes mentioned above (amongst others) would add significant risk to the continued provision of payment solutions and services across TfGM, taking into account the complexity of the requirements and the integration required. Most significantly, the contactless payments solution would require significant rework and regression testing for the processing of transit payments. Payment processing for transit is far more inherently complex than for other payment channels, and suppliers of the other systems that need to interact with the payment processing /merchant acquirer services have their own specifications to meet the card schemes requirements for transit.

It is highly likely that any new supplier of payment processing / merchant acquirer services would be required to re-accredit the contactless scheme. This end-to-end process would take a period of time and require significant interaction with other suppliers in the payments process, and adds significant risk of disruption to existing customer facing services on TfGM's Metrolink and Drivesafe services.

Appointing a new supplier would also provide challenges with respect to 'waivers' that have previously been agreed between the card schemes and the current supplier. Again, this would require significant time to ensure the same waivers would remain in place, and would add risk to the timescales associated with the franchised bus network, as well as maintaining provision on the existing Metrolink payment schemes. It is therefore the intention of TfGM to progress these programmes to move to an operational environment, gather data on customer card payments, and engage with the market once the schemes are in operation.

Commercial outcome & contract awards

Published awards, contracts and bid statistics, not a forecast
Awards 1
Contracts signed 1latest 22 Jul 2021
Awarded toValueDateStatus
Barclays Bank PLC——Awarded

Contracts

Bid statistics published by the authority

LotBidsSMEVCSEValid bid range
Merchant Acquirer Services associated with card payments———£550,000 – £1,000,000
Whole notice———£550,000 – £1,000,000

Contracting authority & participating public bodies

Transport For Greater Manchester

Contracting authorityPublic bodyTransport AuthorityTransport 2 Piccadilly Place, MANCHESTER, North West, M13BGContact name, email

Bidders & participating suppliers

1 commercial party on the notice

Official documents & specifications

Official links; attachments are not copied

No document links were published on the notice.