Call for Competition for the 4th UK National Lottery Licence

{
    "tag": [
        "compiled"
    ],
    "id": "ocds-h6vhtk-042e60-2024-02-21T16:58:25Z",
    "date": "2024-02-21T16:58:25Z",
    "ocid": "ocds-h6vhtk-042e60",
    "initiationType": "tender",
    "tender": {
        "id": "2020/S 168-408296",
        "legalBasis": {
            "id": "32014L0023",
            "scheme": "CELEX"
        },
        "title": "Call for Competition for the 4th UK National Lottery Licence",
        "classification": {
            "scheme": "CPV",
            "id": "92351100",
            "description": "Lottery operating services"
        },
        "mainProcurementCategory": "services",
        "lots": [
            {
                "id": "1",
                "description": "The procurement was for the award of the Fourth Licence to deliver the UK National Lottery following the expiry of the current licence in February 2024. A copy of the 4th National Lottery Licence is published on the Gambling Commission's website: https://www.gamblingcommission.gov.uk/documentation-regarding-the-fourth-national-lottery-licence-jan-2024 The duration of the Licence is 10 years (120 months) with a contingency extension for up to two years. Following the modifications described below there is an additional process within which the Commission can consider an extension to the Licence for up to 2 years (24months), in accordance with the process described at 7.2.1(d) below. The estimated value of the contract set out in 5.2.4 above and 7.1.6 below is based on estimates of sales forecasts over a 10 year (120 months) period taken from the application. The estimated value of the modified contract at 7.2.3 (PS7.933Bn) is based on updated estimates of sales forecasts over a 10 year (120 months) period taking into account the decreased sales in the last year of the 3rd Licence and the matters described at 7.2.1 below. The Commission considers that if any extension is granted in accordance with the process described at 7.2.1 (d) below, there is a possibility that the value of the contract will be closer to the estimated value of the contract before the modification (i.e. PS8.187Bn).",
                "contractPeriod": {
                    "durationInDays": 3600
                }
            }
        ],
        "items": [
            {
                "id": "1",
                "additionalClassifications": [
                    {
                        "scheme": "CPV",
                        "id": "30198000",
                        "description": "Lottery machines"
                    },
                    {
                        "scheme": "CPV",
                        "id": "37524800",
                        "description": "Lotto games"
                    },
                    {
                        "scheme": "CPV",
                        "id": "37524810",
                        "description": "Lottery formulary"
                    },
                    {
                        "scheme": "CPV",
                        "id": "66100000",
                        "description": "Banking and investment services"
                    },
                    {
                        "scheme": "CPV",
                        "id": "72223000",
                        "description": "Information technology requirements review services"
                    }
                ],
                "deliveryAddresses": [
                    {
                        "region": "UKG31"
                    }
                ],
                "relatedLot": "1"
            }
        ],
        "description": "The procurement was for the award of the Fourth Licence to deliver the UK National Lottery following the expiry of the current licence in February 2024. A copy of the 4th National Lottery Licence is published on the Gambling Commission's website: https://www.gamblingcommission.gov.uk/documentation-regarding-the-fourth-national-lottery-licence-jan-2024 The duration of the Licence is 10 years (120 Months) with a contingency extension for up to 2 years (24 Months).",
        "amendments": [
            {
                "id": "2",
                "unstructuredChanges": [
                    {
                        "oldValue": {
                            "text": "The procurement was for the award of the Fourth Licence to deliver the UK National Lottery following the expiry of the current licence in February 2024. A copy of the 4th National Lottery Licence is published on the Gambling Commission's website: https://www.gamblingcommission.gov.uk/documentation-regarding-the-fourth-national-lottery-licence-jan-2024 The duration of the Licence is 10 years (120 Months) with a contingency extension for up to 2 years (24 Months)."
                        },
                        "newValue": {
                            "text": "The procurement was for the award of the Fourth Licence to deliver the UK National Lottery following the expiry of the current licence in February 2024. A copy of the 4th National Lottery Licence is published on the Gambling Commission's website: https://www.gamblingcommission.gov.uk/about-us/page/documentation-regarding-the-fourth-national-lottery-licence-jan-2024 The duration of the Licence is 10 years (120 Months) with a contingency extension for up to 2 years (24 Months)."
                        },
                        "where": {
                            "section": "II.2.4"
                        }
                    }
                ],
                "description": "Please replace the hyper link previously used with: https://www.gamblingcommission.gov.uk/about-us/page/documentation-regarding-the-fourth-national-lottery-licence-jan-2024 The hyperlink has been updated in sections: II.2.4 V11.1.4 VII.2.1"
            }
        ]
    },
    "awards": [
        {
            "id": "001857-2024-2020/S 228-653118-1",
            "relatedLots": [
                "1"
            ],
            "title": "Call for Competition for the 4th UK National Lottery Licence",
            "status": "active",
            "suppliers": [
                {
                    "id": "GB-COH-13157556",
                    "name": "Allwyn Entertainment Ltd"
                }
            ]
        }
    ],
    "parties": [
        {
            "id": "GB-FTS-102933",
            "name": "Gambling Commission",
            "identifier": {
                "legalName": "Gambling Commission",
                "noIdentifierRationale": "notOnAnyRegister"
            },
            "address": {
                "streetAddress": "Victoria Square House, Victoria Square",
                "locality": "BIRMINGHAM",
                "region": "UKG31",
                "postalCode": "B2 4BP",
                "countryName": "United Kingdom"
            },
            "contactPoint": {
                "name": "Safraj Ismail",
                "email": "4nlcimplementation@gamblingcommission.gov.uk"
            },
            "roles": [
                "buyer"
            ],
            "details": {
                "url": "https://www.gamblingcommission.gov.uk/documentation-regarding-the-fourth-national-lottery-licence-jan-2024"
            }
        },
        {
            "id": "GB-COH-13157556",
            "name": "Allwyn Entertainment Ltd,",
            "identifier": {
                "legalName": "Allwyn Entertainment Ltd,",
                "id": "13157556",
                "scheme": "GB-COH"
            },
            "address": {
                "streetAddress": "1 Connaught Place, 5th floor",
                "locality": "London",
                "region": "UKI32",
                "postalCode": "W22ET",
                "countryName": "United Kingdom"
            },
            "roles": [
                "supplier"
            ],
            "details": {
                "scale": "large"
            }
        },
        {
            "id": "GB-FTS-102934",
            "name": "Gambling Commission",
            "identifier": {
                "legalName": "Gambling Commission"
            },
            "address": {
                "streetAddress": "4th Floor Victoria Square House",
                "locality": "Birmingham",
                "postalCode": "B2 4BP",
                "countryName": "United Kingdom"
            },
            "roles": [
                "reviewBody"
            ]
        }
    ],
    "buyer": {
        "id": "GB-FTS-102933",
        "name": "Gambling Commission"
    },
    "contracts": [
        {
            "id": "001857-2024-2020/S 228-653118-1",
            "awardID": "001857-2024-2020/S 228-653118-1",
            "title": "Call for Competition for the 4th UK National Lottery Licence",
            "status": "active",
            "value": {
                "amount": 7933000000,
                "currency": "GBP"
            },
            "dateSigned": "2022-09-15T00:00:00+01:00",
            "period": {
                "durationInDays": 120
            },
            "items": [
                {
                    "id": "1",
                    "classification": {
                        "scheme": "CPV",
                        "id": "92351100",
                        "description": "Lottery operating services"
                    },
                    "additionalClassifications": [
                        {
                            "scheme": "CPV",
                            "id": "30198000",
                            "description": "Lottery machines"
                        },
                        {
                            "scheme": "CPV",
                            "id": "37524800",
                            "description": "Lotto games"
                        },
                        {
                            "scheme": "CPV",
                            "id": "37524810",
                            "description": "Lottery formulary"
                        },
                        {
                            "scheme": "CPV",
                            "id": "66110000",
                            "description": "Banking services"
                        },
                        {
                            "scheme": "CPV",
                            "id": "72223000",
                            "description": "Information technology requirements review services"
                        }
                    ],
                    "deliveryAddresses": [
                        {
                            "region": "UKG31"
                        }
                    ],
                    "relatedLot": "1"
                }
            ],
            "amendments": [
                {
                    "id": "1",
                    "description": "The Enabling Agreement and draft Licence (annexed thereto) (copies are of which are available at : https://www.gamblingcommission.gov.uk/documentation-regarding-the-fourth-national-lottery-licence-jan-2024) were modified in September 2022, September 2023 and December 2023 to take account of delays to implementation of Allwyn's solution. The main modifications were (a) extending Key Dates, (b) providing for the application to be partially implemented at the Start Date (1 February 2024), namely the provision of Initial Functionality (being an enhanced provision of the existing service) and then the achievement of Full Implementation by 29 September 2024, with a fall back date of 28 February 2025 (which was agreed to be the applicable date in October 2023), (c) including a cap on the amount of additional costs incurred by the Commission which Allwyn is required to reimburse to Good Causes as a result of implementation continuing after 1 February 2024, based on the realistic maximum assessment by the Commission and (d) building in a process for the Commission to consider extending the term for up to 2 years (24 months) following a review, no earlier than Licence Year 5, provided that the extension is not inconsistent with the Commission's statutory duties. The Enabling Agreement was further modified to include provisions dealing with sanctions, namely requiring Allwyn not to enter into, and to do everything it can to ensure others (in particular, shareholders and subcontractors) do not enter into, any arrangement prohibited by or in breach of sanctions, together with obligations to notify the Commission of any such arrangements, promptly terminate such arrangements and implement appropriate policies and procedures with respect to monitoring arrangements with respect to sanctions.",
                    "rationale": "Need for modification brought about by circumstances which a diligent contracting authority/entity could not foresee: The modifications at (a) - (d) were necessary due to delay in implementation of Allwyn's solution which was primarily caused by litigation by the incumbent licensee (Camelot) and its subcontractor (IGT) (resulting in the loss of Allwyn's 3 month contingency period and a shorter implementation period than envisaged in the Competition) and/or by protracted and challenging negotiations regarding handover from IGT to Allwyn. The sanctions modification was caused by the invasion of Ukraine by Russia and sanctions imposed by the UK and other Governments. It was unforeseeable that IGT, a subcontractor to the incumbent, would start proceedings against the Commission in circumstances in which subcontractors do not have a cause of action under the Regulations, that IGT would continue proceedings once Camelot withdrew its proceedings on 16 February 2023 and/or that negotiations with IGT would be so protracted and challenging in circumstances in which, in addition to its existing subcontract, IGT had undertaken to the Commission in July 2021 to enter into good faith negotiations with the incoming licensee with a view to agreeing transitional services, software and support during the transition phase and for up to 2 years thereafter and its reasonable fees and costs. The invasion of Ukraine and the significant sanctions imposed were unforeseeable. In any event, the above modifications were not substantial."
                }
            ]
        }
    ],
    "links": [
        {
            "rel": "prev",
            "href": "https://ted.europa.eu/udl?uri=TED:NOTICE:653118-2022:TEXT:EN:HTML"
        }
    ],
    "language": "en"
}