Ireland – IT services: consulting, software development, Internet and support – Modification to contract for Cloud Transformation and Managed Services originally awarded in 2017

In 2017 the RTB procured for the Provision of Cloud Transformation and Managed Services using the Competitive Dialogue Procurement Procedure, establishing two seven (7) year Single Party Framework Agreements with a total estimated value of €5,000,000. As the same service provider won both lots, a single contractual relationship ultimately ensued after the initial four year contract. The contract was awarded for an initial period of four years, commencing 6th October 2017, with the option to extend for an additional three years which was exercised by the contracting authority. The value of the contract over the initial four-year period was EUR 3,834,155 (excluding VAT). When the initial four (4) year contract concluded, the RTB awarded a new three (3) year contract under the Framework Agreement to Unity under the same terms and conditions, to the value of €2,500,000. The value over the full seven-year period was EUR 7,639,170 (ex VAT). Due to the complexity and essential nature of the services required and a changing landscape within RTB and the everchanging nature of the requirements, a number of contract modifications have been implemented as detailed below. The upper limit of the modification spend of €2,500,000 has been reached and a further extension of 50% spend limit of the original contract value is now implemented bringing the total potential value to €12,500,000. This contract modification involves the extension of the current contract for a period of two (2) further years, with an option to extend it for a further year. Reasons for modification: Need for additional works, services or supplies by the original contractor/concessionaire (Art. 72(1)(b) of Directive 2014/24/EU). The spend on the extended contract was greatly impacted by the facilitation of 3rd party contracting services through which funding for RTB 360 remediation and programme management services were funded. Article 72 of the Public Sector Directives permits modifications to contracts and frameworks during their term. It is proposed to apply Article 72 (c) of Directive 2014/24/EU. It should be noted that a new competition for these services will be initiated in the coming months and it is anticipated that this may take at least 12 to 18 months to procure, award and implement thus underlying the reason for the modification. This is not an award notice but a modification notice of an existing contract awarded originally in 2017.