Extension of the Data Centre Operations and Central Network Services (including Test Infrastructure)

Concepts

• information technology
• central network services
• test infrastructure
• data centre operations
• an existing software and it services agreement
• the data centre operations
• network
• central
• test
• infrastructure

Location

London

Description

This Notice relates to a Modification to a contract in accordance with Regulation 72 (1) (b) of the Public Contracts Regulations 2015. Post Office Limited ("Post Office" or "the Authority") entered into an agreement with Fujitsu Services Limited ("Fujitsu Services") dated 28th July 1999 ("Horizon Agreement") for the provision of certain services, including services in respect of the HNG-X System ("Services"). Provision of all Services were extended in 2021 with the Data Centre Operations and Central Network Services expected to be terminated upon the successful move to the Cloud, or to expire naturally on 31st March 2023, whichever occurred earlier. However, the program to transfer the services to a new Cloud provider created fundamental technical challenges that POL could not economically and technically overcome, and the business has taken the decision to pivot back to the Fujitsu provided Horizon Data Centres until the successful transfer of services out of Horizon and into its replacement NBIT ("New Branch IT"). As a result of this retention of Data Centre capabilities it is necessary to carry out Data Centre Fortification works to avoid provide stability, avoid obsolescence and ensure business continuity. Accordingly, this Modification includes capital expenditure for an appropriate refresh and improvement program. The Data Centre Operations and Central Network Services have thereby been extended (including the Test Infrastructure) for an additional period of 1 year from the 1st April 2024; to be co-terminus with the main Horizon Services. The estimated value of these Services and capital expenditure for the additional one year under the modification is £36,610,000 GBP.

Ammendments to Previous Notice

Award Detail

CPV Codes

• 72000000 - IT services: consulting, software development, Internet and support

Indicators

• Contract modified due to additional needs.

Legal Justification

This Notice relates to the modification of an existing contract that has been necessary due to the following reasons: The existing Horizon System is a highly complex platform, written in legacy versions of software languages and which incorporates five "systems" in one i.e. financial services, banking, government services, mails and retail. As an aging platform, the inflexible nature of the construction of the architecture of "Horizon" itself makes technology change challenging. Accordingly, the Program to transfer the services to the Cloud encountered fundamental technical challenges that Post Office could not economically and technically overcome, and the business has taken the decision to pivot back to the existing Data Centres until the successful transfer of services out of Horizon and into its replacement NBIT ("New Branch IT"). The Data Centre Operations and Central Network Services cannot be transferred away from the original contractor in the short term because of the specific interoperability requirements, compounded by the highly complex nature of the existing infrastructure and the Post Office's business model and operating procedures. A change of contractor would result in disproportionate technical difficulties in implementation as well as operation and maintenance at this time. Awarding the services to a different contractor would also cause significant inconvenience in terms of service delivery, reliability and continuity of service including because of incomplete transfer of know-how. Therefore, Post Office has modified the contract in accordance with Regulation 72 (1) (b) of the Public Contracts Regulations 2015. The increase in price as a result of the modified contract is less than 50% of the original contract value. The Data Centre Operations and Central Network Services have thereby been extended for an additional period of 1 year from the 1st April 2024.