SaaS Services Contract · UK public procurement notice

CPV: IT services: consulting, software development, Internet and support

Procedure method

Negotiated without publication of a contract notice

Legal basis

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

Procurement category

Services

Notice status

Awarded

Procurement threshold

Unspecified in notice

Regulatory regime

Standard

Commercial structure

Stand-alone contract (no framework)

Competition type

Competitive procedure

GPA / WTO covered

Yes (GPA)

Recurring procurement

Unspecified in notice

First published

19 Jan 2024, 16:38 GMT

Last source update

19 Jan 2024, 16:38 GMT

FTS notice number

2024/S 000-001994

Classification (CPV)

IT services: consulting, software development, Internet and support

Delivery area

UK

Official registry OCID

ocds-h6vhtk-042eb1 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

NHG intends to award the Contract to NewCo pursuant to Regulation 32(2)(b)(ii) of the Public Contracts Regulations 2015 (PCR) for the reasons set out below:

In 2019 Neo Technology Limited (Neo Tech) were engaged via NHG's managed service provider for temp staff to provide individuals to support the development of NHG's Arrears and WorkWise Repairs software product (WorkWise).

In February 2022 NHG awarded an ICT consultancy services contract to Neo Tech for the further development of WorkWise. This was awarded through the CCS G-Cloud Framework and is set to expire in August 2024.

In October 2022 NHG entered into a separate contract with Neo Tech for the provision of support and managed services in respect of WorkWise. This was also awarded through G-Cloud and is set to expire in October 2024.

NHG owns the IPR rights in WorkWise. In late 2022 / early 2023 NHG began to explore its options for the future use, support and roll out of WorkWise. NHG sought expressions of interest from organisations that are active or looking to be active in the PropTech marketplace. Following a review of the proposal submitted, Neo Tech was identified as the preferred organisation given its detailed commercial proposal and experience with NHG technology mitigating concerns around technical risk.

The following overall transaction structure has now been agreed in respect of the future use, support and roll out of WorkWise:

• A new company will be created by NHG and Neo Tech (ie NewCo). The IPR in WorkWise will be transferred to NewCo
• The existing contracts between NHG and Neo Tech referred to above will be terminated and the new "SaaS" services Contract will be entered into between NHG and NewCo under which NewCo will provide NHG with access to WorkWise and various ICT support services in relation to it (further described in section II.2.4 of this Notice)

NHG 's view is that it is entitled to award this Contract to NewCo under Regulation 32(2)(b)(ii) of the PCR for the following reasons:

(i)The WorkWise product was designed specifically for NHG's needs and requirements. Neo Tech have been heavily involved in the development of the product and have been providing support services in relation to it since 2022, pursuant to the contracts awarded through G-Cloud. Accordingly, Neo Tech have an in depth understanding and knowledge of the product and of NHG's service and business requirements. NewCo will be majority owned and resourced by Neo Tech so will, by extension, have the benefit of this knowledge, expertise and experience. No other ICT providers in the market will have this

(ii) Given that WorkWise was designed specifically for NHG and is fully embedded within its business, it is realistically not an option for NHG to undertake an open market procurement for a new / different product for the delivery of the same type of service. The reality is that any such product would be very unlikely to "match up" to WorkWise in terms of required functionality and interoperability with NHG's wider systems and business

(iii) Given that use of an alternative ICT product to WorkWise is not a realistic option for NHG, and given Neo Tech's, and by extension, NewCo's unparalleled knowledge and understanding of the product, if NHG were to put the Contract out to competitive tender in accordance with the PCR it is likely that genuine competition for it would be absent because it would be very difficult for another service provider to compete with NewCo's tender proposals for the opportunity, and thereby provide a reasonable alternative

(iv) The above circumstances have not come about as a result of an "artificial narrowing down of the parameters of the procurement" by NHG. On the contrary, they have come about as a result of Neo Tech's, and by extension, NewCo's knowledge, understanding and experience of the WorkWise product and NHG's business requirements which it gained from its performance of the contracts awarded to it through G-Cloud

Publisher note: The Contracting Authority intends to enter into this contract following a minimum 10 day calendar day standstill period starting on the day after this notice is published in the UK Find a Tender Service. The Public Contracts Regulations 2015 (SI 2015 No 102) (as amended) (the Regulations) provide for aggrieved parties who have been harmed or who are at risk of harm by a breach of the Regulations to bring proceedings in the High Court. Any such proceedings must be brought within the limitation period specified by the Regulations according to the remedy sought.

• NewCoAwarded supplierGB-COH: Companies House Bruce Kenrick House, 2 Killick Street, London, N1 9FL, London, UK, N1 9FLContact name, emailShow contact details

No document links were published on the notice.