Award

The provision of Electronic Human Resources and related ICT Services Northern Ireland Civil Service (e-HR programme)

CPD - SUPPLIES AND SERVICES DIVISION

This public procurement record has 1 release in its history.

Award

10 Mar 2021 at 13:40

Summary of the contracting process

The Department of Finance (DoF) is seeking to modify an existing Strategic Partnership Agreement (SPA) for the provision of Electronic Human Resources and related ICT services for the Northern Ireland Civil Service (NICS). The title of the tender is "The provision of Electronic Human Resources and related ICT Services Northern Ireland Civil Service (e-HR programme)." This procurement falls under the services industry category and is currently at the Award stage, following a modification that will extend the contract from 29 March 2021 for an additional four years, with options for two further annual extensions. The total value of this modification is estimated at £86.8 million. The location of the procurement is in Northern Ireland, with the modification intended to maintain existing systems while a new procurement for HR services is being developed. The procurement process used is classified as "limited" and follows a negotiated approach without the publication of a contract notice.

This tender presents significant opportunities for businesses specialising in HR and payroll systems, data services, and related ICT services. Companies that can offer end-to-end managed solutions and have experience in customising software to align with diverse HR policies would be well-suited to compete for future contracts when the replacement solution is procured. Given that the existing contractor, Fujitsu Services Limited, has held the contract for 15 years, businesses that can demonstrate innovation and reliability in service delivery would be favourably positioned to succeed in this evolving landscape of public procurement.

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Notice Title

The provision of Electronic Human Resources and related ICT Services Northern Ireland Civil Service (e-HR programme)

Notice Description

Following an open competition (advertised in the Official Journal of the EU in 2003), the Department of Finance (DoF) entered into a Strategic Partnering Agreement (SPA) with Fujitsu on 29 March 2006 for the provision of Electronic Human Resources and related ICT Services for the Northern Ireland Civil Service (NICS) Departments and a number of non Departmental Public Bodies. The Strategic Partnership Agreement (known as the e-HR) provided an end to end fully managed solution for the provision of payroll & HR services. The system has been heavily customised to align to its users' wide range of HR policies and procedures. The Strategic Partnership Agreement expires on 29 March 2021, however it has become unavoidably necessary to continue to maintain the existing systems and services beyond this point. The Department of Finance intends to modify the Strategic Partnership Agreement in accordance with Regulation 72(1)(b) due to the economic and technical reasons and the substantial duplication of cost and significant inconvenience associated with changing to a new contractor to support the current systems and services whilst the Department procures a replacement solution. This voluntary transparency notice has been published to alert economic operators of DoF's intentions to modify the Strategic Partnership Agreement with effect from the 29 March 2021 for a period of 4 years with 2 further annual options to extend. DoF intends to launch a procurement competition and award a replacement contract for the next generation of HR Services before this modification expires.

Lot Information

Lot 1

The eHR Strategic Partnership Agreement (SPA) is a fully managed contract for the provision of payroll & HR systems and services. The system has been heavily customised over the last 15 years to align to its users wide range of HR policies and procedures. The SPA is an end to end HR and Payroll solution including the provision and management of hardware/software and services. The modification will extend the SPA from 29 March 2021 for a period of 4 years with 2 further annual options to extend. The original contract notice 2003/S 186-168054 showed the contract term as 10 years support from the point of the implementation of the services, with an option to extend the contract for a further 5 years. The contract notice stated that this period was subject to negotiation during the procurement phase. During the negotiation phase, it was agreed that the contract period would be 15 years (as opposed to 10 years with an option to extend for a further 5 years), however the contract award didn't reflect the additional time for the implementation of services which had been intended in the original contract notice. The full implementation for all services under the e-HR contract took almost 4 years which is the initial period for this extension. The additional 2 annual options to extend will provide contingency for any delays during the procurement phase or implementation period for the replacement contract. The value of the 4 year extension is estimated at PS58.2m. The accumulative value of the 5 years extension is estimated at PS72.8m and the accumulative value of the 6 years extension is estimated at PS86.8m. Additional information: This voluntary transparency notice has been published to alert economic operators of the Department of Finance's intention to modify the eHR Strategic Partnership Agreement with Fujitsu under regulation 72(1)(b) of the Public Contract Regulations. The modification will take the form of an extension from 29 March 2021 until 29 March 2025 (with 2 further annual options to extend). A modification notice will be published after the modification has been formalised.

Procurement Information

This voluntary transparency notice is to alert economic operators to the Department of Finance's intention to modify its Strategic Partnership Agreement (SPA) for HR and Payroll Services with Fujitsu for a period of 4 years (with 2 further annual options to extend) using regulation 72(1)(b) of the Public Contracts Regulations 2015 (as amended). The SPA ends on 29 March 2021, however it has become necessary to continue to maintain the existing systems and services beyond this point whilst the procurement for the next generation of HR and payroll services is procured and implemented. The existing contractor provides an end to end service and manages the hardware/software required to deliver the HR and payroll solution. The SPA is a single contractor managed service arrangement which includes the supply of a broad range of payroll, HR and related ICT services (including, without limitation, on-going management, operation of the end to end HR and payroll services and maintenance support), underpinned by computer hardware, software and associated products. The solution is heavily customised to align with the NICS HR policies and procedures. The current contractor has acquired the intellectual property and specialised know how to maintain and develop the system over the last 15 years to reflect the varying requirements of the NICS departments and their associated bodies. The change of contractor for the critical managed service, for a relatively short period of time, during which replacement contract(s) will be procured and implemented, would introduce an unacceptable risk of system failure and would cause substantial duplication of costs and significant inconvenience to the contracting authority and a potential disruption to public services.

Publication & Lifecycle

Open Contracting ID
ocds-h6vhtk-029a4f
Publication Source
Find A Tender Service
Latest Notice
https://www.find-tender.service.gov.uk/Notice/004830-2021
Current Stage
Award
All Stages
Award

Procurement Classification

Notice Type
Award Notice
Procurement Type
Standard
Procurement Category
Services
Procurement Method
Limited
Procurement Method Details
Negotiated without publication of a contract notice
Tender Suitability
Not specified
Awardee Scale
Large

Common Procurement Vocabulary (CPV)

CPV Divisions

72 - IT services: consulting, software development, Internet and support

79 - Business services: law, marketing, consulting, recruitment, printing and security


CPV Codes

72253200 - Systems support services

72260000 - Software-related services

72300000 - Data services

72510000 - Computer-related management services

79400000 - Business and management consultancy and related services

79410000 - Business and management consultancy services

79414000 - Human resources management consultancy services

79631000 - Personnel and payroll services

Notice Value(s)

Tender Value
Not specified
Lots Value
Not specified
Awards Value
Not specified
Contracts Value
£185,000,000 £100M-£1B

Notice Dates

Publication Date
10 Mar 20214 years ago
Submission Deadline
Not specified
Future Notice Date
Not specified
Award Date
28 Mar 200619 years ago
Contract Period
Not specified - Not specified
Recurrence
Not specified

Notice Status

Tender Status
Complete
Lots Status
Not Specified
Awards Status
Active
Contracts Status
Active

Contracting Authority (Buyer)

Main Buyer
CPD - SUPPLIES AND SERVICES DIVISION
Contact Name
Not specified
Contact Email
ssdadmin.cpd@finance-ni.gov.uk
Contact Phone
Not specified

Buyer Location

Locality
BELFAST
Postcode
BT3 9ED
Post Town
Northern Ireland
Country
Northern Ireland

Major Region (ITL 1)
TLN Northern Ireland
Basic Region (ITL 2)
TLN0 Northern Ireland
Small Region (ITL 3)
TLN06 Belfast
Delivery Location
TLN Northern Ireland

Local Authority
Belfast
Electoral Ward
Sydenham
Westminster Constituency
Belfast East

Supplier Information

Number of Suppliers
1
Supplier Name

FUJITSU SERVICES

Open Contracting Data Standard (OCDS)

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The Open Contracting Data Standard (OCDS) is a framework designed to increase transparency and access to public procurement data in the public sector. It is widely used by governments and organisations worldwide to report on procurement processes and contracts.

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