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
- The works, supplies or services can be provided only by a particular economic operator for the following reason
- absence of competition for technical reasons
Explanation
In 2018, and following a public competition, the RSA awarded a 3-year contract for the provision, support, and maintenance of a project and portfolio management solution to Cora Systems.
Following contract award the various modules of the Cora project and portfolio management solution (“the System”) had to be configured to meet the specific requirements of the RSA. The cost of the configuration was circa €80,000. There is no off-the-shelf product that can fully meet RSA requirements without such configuration, therefore a change of supplier / system would mean that the RSA would have to re-incur the configuration cost.
A change of supplier / system would also require a significant data migration and testing, which would entail review and analysis of the new system entities and data fields, data mapping, transposition, data script development, data upload, data validation and end user testing. If automated approach is used the data transfer is estimated to cost circa €35,000; if data transfer is conducted manually, it is expected to cost twice as much (circa €70,000).
Overall, the estimated cost of transition to a new system (excluding the cost for up-skilling) ranges from circa €115,000 to €150,000 (depending on the data transfer method employed) which represents between 46% to 60% of the overall estimated contract value of €250,000 over the 4-year term of this contract.
The RSA believes that paying 46% (or more) of the overall contract value for transition and set up does not constitute a reasonable alternative or substitute. Therefore, the RSA is satisfied that the competition is absent for technical reasons because no reasonable alternative or substitute exists without such transfer and set up costs.
The RSA is further satisfied that the absence of competition is not the result of an artificial narrowing down of the parameters of the procurement. Specifically:
i. The need for transition is not artificial - the new contract without the transition is not possible.
ii. The need for configuration is not artificial – no off-the-shelf system can meet RSA needs without configuration.
iii. The transition costs are not artificial – they have been calculated using estimated work effort and the standard / average daily rate for such services.
Overall, the RSA is satisfied that sufficient grounds exist to award this 4-year contract to Cora Systems directly, in line with provisions of Article 32.2(b)(ii) of the Directive.
The procurement is covered by the Government Procurement Agreement
: yes