Clarion Housing Group: Enterprise Resource Planning (‘ERP’) Solution and System Integrator

UK-London: Enterprise resource planning software development services.

Preliminary Questions
   This notice is published by:
   Directive 2014/24/EU

Section I: Contracting authority/entity

I.1) Name and addresses
       Clarion Housing Group
       6 More London Place, London, SE1 2DA, United Kingdom
       Tel. +44 2073785571, Email: procurement@clarionhg.com
       Contact: Kirsty Bower
       Main Address: https://www.myclarionhousing.com/, Address of the buyer profile: https://www.clarionhg.com/
       NUTS Code: UK

I.4) Type of the contracting authority (in the case of a notice published by a contracting authority)
      Body governed by public law

I.5) Main Activity (in the case of a notice published by a contracting authority)
      Housing and community amenities


Section II: Object

II.1) Scope of the procurement
   
   II.1.1) Title: Enterprise Resource Planning (‘ERP’) Solution and System Integrator.
      Reference number: Not Provided
      
   II.1.2) Main CPV code:
      72212451 - Enterprise resource planning software development services.
   
   II.1.3) Type of contract: SERVICES
   
   II.1.4) Short Description: Clarion Housing Group is placing this voluntary transparency notice to alert economic operators of its intention to modify the Network NI contract in accordance with Regulation 72 (1) (c) of the Public Contracts Regulations 2015. It is intended that this modification will extend the current contract to accommodate completion of the contract requirements. This transparency notice does not place any obligation on the authority to enter into this modification.
   
   II.1.6) Information about lots
      This contract is divided into lots: No

   II.1.7) Total value of the procurement (excluding VAT)
      Value: 17,274,089      
      Currency: GBP


II.2) Description

   II.2.2) Additional CPV codes:
      48451000 - Enterprise resource planning software package.
      72212451 - Enterprise resource planning software development services.
   

   II.2.3) Place of performance:
      UK UNITED KINGDOM
   
   
   II.2.4) Description of the procurement:
    Clarion Housing Group is placing this voluntary transparency notice to alert economic operators of its intention to modify the Enterprise Resource Planning (‘ERP’) Solution and System Integrator contract in accordance with Regulation 72 (1) (c) of the Public Contracts Regulations 2015. It is intended that this modification will extend the current contract to accommodate completion of the contract requirements. This transparency notice does not place any obligation on the authority to enter into this modification.    
   
   II.2.5) Award criteria
   (Directive 2014/24/EU / Directive 2014/25/EU)
               
    Not provided       
      
      
   II.2.11) Information about options:
      Options:    No       
   
   II.2.13) Information about European Union funds:
      The procurement is related to a project and/or programme financed by European Union funds:    No

   II.2.14) Additional information:
    Not provided    
      
Section IV: Procedure

IV.1) Description
   
   IV.1.1) Type of procedure: Award of a contract without prior publication of a call for competition in the Official Journal of the European Union in the cases listed below         
   
   IV.1.3) Information about framework agreement
         The procurement involves the establishment of a framework agreement: No    
   
   IV.1.8) Information about the Government Procurement Agreement (GPA)
         The procurement is covered by the Government Procurement Agreement:Yes
         
IV.2)Administrative Information

   IV.2.1) Previous publication concerning this procedure:
      Notice number in OJ S: 2016/S 5 - 5641       
   
Section V: Award Of Contract/Concession
      
Award of Contract/Concession No: 1
Contract No: Not Provided    Lot Number: Not Provided    Title: Enterprise Resource Planning (‘ERP’) Solution and System Integrator

V.2) Award of contract/concession
      
      V.2.1) Date of contract award decision: 30/11/2020.
      
      V.2.2) Information about tenders
      The contract has been awarded to a group of economic operators: No .

      V.2.3) Name and address of the contractor/concessionaire, No. 1:
          Hitachi Solutions Europe Limited, 04924233
       15th Floor, City Point, 1 Ropemaker Street, London, EC2Y 9HT, United Kingdom
       Internet address: http://eu.hitachi-solutions.com
       NUTS Code: UK
   The contractor/concessionaire will be an SME: No    
   
         
      V.2.4) Information on value of the contract/lot/concession:
         Initial estimated total value of the contract: 17,274,089          
         Total value of the contract/lot/concession 25,911,133         
         Currency: GBP

      V.2.5) Information about subcontracting:
         The contract is likely to be subcontracted: No          


Section VI: Complementary Information

   VI.3) Additional Information:
      The date shown in this voluntary transparency notice Section V.2.1) is defaulted at the date Clarion Housing Group issued the notice to the journal. However this date is not the date for conclusion of contract, the proposed date for the modification would be 15.12.2020 if Clarion Housing Group proceeds as intended.
To view this notice, please click here:
https://clarion.delta-esourcing.com/delta/viewNotice.html?noticeId=548812559
GO-2020121-PRO-17444708 TKR-2020121-PRO-17444707   
   VI.4) Procedures for review
   
      VI.4.1) Review Body
          The UK does not have any such bodies with responsibility for appeal/mediation procedures
       London, United Kingdom
   
      V1.4.2) Body responsible for mediation procedures:
                NA
       NA, United Kingdom.

      VI.4.3) Review procedure
         The Public Contract Regulations 2015 provide for aggrieved parties who have been harmed or are at risk of harm by a breach of the rules to take action in the High Court (England, Wales and Northern Ireland). Clarion Housing Group incorporated a standstill period before this contract was awarded.    
      
      VI.4.4) Service from which information about the review procedure may be obtained
         Not Provided
   
   VI.5) Date of dispatch of this notice: 01/12/2020


Annex D1 - General Procurement
Justification for the award of the contract without prior publication of a call for competition in the Official Journal of the European Union
Directive 2014/24/EU


2. Other justification for the award of the contract without prior publication of a call for competition in the Official Journal of the European Union

   The procurement falls outside the scope of application of the directive: Yes

3. Explanation

   Please explain in a clear and comprehensive manner why the award of the contract without prior publication in the Official Journal of the European Union is
   lawful, by stating the relevant facts and, as appropriate, the conclusions of law in accordance with the directive: (500 words maximum)
   In April 2015 Clarion Housing Group (at the time Affinity Sutton) awarded the "Enterprise Resource Planning (‘ERP’) Solution and System Integrator" contract to Hitachi Solutions Europe Ltd ("Hitachi"). The total value of the contract as per the Contract Award Notice (dated: 6.1.2016) was £17,274,089 GBP over the contract period.

The term of the contract was stated in the published OJEU Notices as a 5 year Agreement. The contract itself provided that it commenced until completion of the requirements under the contract. The contract was novated to Clarion Housing Group following the merger of Affinity Sutton and Circle Housing (the Merger).

Regulation 72 provides that contracts may be modified without a new procurement procedure in any of a number of cases, including under Reg 72 (c) where all of the following conditions are fulfilled:

(i) the need for modification has been brought about by circumstances which a diligent contracting authority could not have foreseen;
(ii) the modification does not alter the overall nature of the contract;
(iii) any increase in price does not exceed 50% of the value of the original contract

In accordance with the above Regulation Clarion Housing Group are extending the contract to cover the completion of the contract requirements, which incurs an increase in the contract cost. This is valid based on:

(i) the need for modification has been brought about due to the Merger.

The Merger increased the complexity of the contractual requirements due to the additional systems that required update and transformation, and this resulted in increased costs and a delay to delivery.

(ii) the modification does not alter the overall nature of the contract.

The extension and additional monies are to ensure that the contractual requirements are met. Within the OJEU Notices Clarion Housing Group procured an SI partner whose duties "involve but (are) not be limited to the planning, design, implementation and integration of the ERP system, together with support and maintenance once the ERP system is implemented."

Under the planning and design requirement, the original contract awarded established that the ERP system requires a Repairs Module, and as such this will be designed, implemented and integrated under the contract as originally intended at the point of award.

Please note that for this aspect Clarion Housing Group can also rely on the modification provisions of 72(1)(b) due to the near technical impossibility for another economic operator to achieve the required performance within the time permitted; and the necessity to use its specific know-how, tools and means which only Hitachi have at their disposal.

(iii) the price increase is below 50% of the value of the original contract.

The Contract Award Notice stated that the total contract value was £17,274,089 GBP over the contract period. The above changes and modifications will incur additional time and cost, but the resultant contract value will not exceed £25,911,135 GBP, which is 50% of the value of the original contract.