Date of dispatch of this notice: 09/09/2022
External Reference: 2022-268297
TED Reference: 2022/S 177-501823
Contract award notice
Information
Published
Contract award notice
Contract award notice
Results of the procurement procedure
Directive 2014/24/EU
Section I: Contracting authority
I.1)
Name and addresses
Health Service Executive (HSE)
N/A
Head Office
Naas
Millennium Park
IE
Contact person:
Robert Notley
Telephone:
+353 0
E-mail:
robert.notley@hse.ie
NUTS code:
IE -
IRELAND
Main address:
http://www.hse.ie
Address of the buyer profile:
https://irl.eu-supply.com/ctm/Company/CompanyInformation/Index/461
I.2)
Joint procurement
The contract is awarded by a central purchasing body
I.4)
Type of the contracting authority
Body governed by public law
I.5)
Main activity
Health
Section II: Object
II.1)
Scope of the procurement
II.1.1)
Title
Provision of Payroll Processing Services
Reference number:
HSE 17863
II.1.2)
Main CPV code
79211110
-
Payroll management services
II.1.3)
Type of contract
Services
II.1.4)
Short description
HSE is currently deploying a National Integrated Payroll System (NiSRP), and while the deployment of this system continues, the requirement for outsourced payroll processing services remains, To this end, HSE propose entering into a contract for the continued provision of Payroll Processing Services, to ensure payroll services for 45,000 circa HSE staff.
The delivery of services through the Resource Link platform to the former Health Boards of South, North East and West for a period up to 3 years.
The delivery of services through the Resource Link platform to the former Health Boards of South, North East and West for a period up to 3 years.
II.1.6)
Information about lots
This contract is divided into lots:
no
II.1.7)
Total value of the procurement
Value excluding VAT:
3322410.00
EUR
II.2)
Description
II.2.2)
Additional CPV code(s)
79631000
-
Personnel and payroll services
II.2.3)
Place of performance
NUTS code:
UK -
UNITED KINGDOM
NUTS code:
IE -
IRELAND
Main site or place of performance:
UNITED KINGDOM
II.2.4)
Description of the procurement
Zellis (formerly Norhtgate Arinso, formerly Cara) have been supplying Payroll solutions for the HSE since the early 1990’s, and in 2017 the HSE entered into a 5 year renewal contract with Zellis to continue to supply payroll services for 4 operational sites across the HSE.
Currently the HSE are in the process of rolling out a National Integrated Staff Records and Pay Programme (NiSRP) across the HSE. This rollout involves the transfer of all Pay and HR related solutions from their current legacy systems to the HSE SAP platform by 2025. At the time it was envisaged by those negotiating the 2017-2022 contract that rollout of NiSRP would be complete during the duration of the contract. This has not been the case due to reasons beyond the scope of this document, but the current plan as outlined by NiSRP is to rollout the South in 2023 and the West and North East prior to the end of Dec 2025.
As the current contract with Zellis expires on 31 Dec 2022, due to technical and operational reasons the proposal is to extend this contract for a further 3 years.
The delivery of services through the Resource Link platform to the former Health Boards of South, North East and West for a period up to 3 years, and award the contract without prior publication of a call for competition in the Official Journal of the European Union. The HSE proposes to do this under Article 72 EU Directives.
Currently the HSE are in the process of rolling out a National Integrated Staff Records and Pay Programme (NiSRP) across the HSE. This rollout involves the transfer of all Pay and HR related solutions from their current legacy systems to the HSE SAP platform by 2025. At the time it was envisaged by those negotiating the 2017-2022 contract that rollout of NiSRP would be complete during the duration of the contract. This has not been the case due to reasons beyond the scope of this document, but the current plan as outlined by NiSRP is to rollout the South in 2023 and the West and North East prior to the end of Dec 2025.
As the current contract with Zellis expires on 31 Dec 2022, due to technical and operational reasons the proposal is to extend this contract for a further 3 years.
The delivery of services through the Resource Link platform to the former Health Boards of South, North East and West for a period up to 3 years, and award the contract without prior publication of a call for competition in the Official Journal of the European Union. The HSE proposes to do this under Article 72 EU Directives.
II.2.5)
Award criteria
Criteria below
Price
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
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
- The procurement falls outside the scope of application of the directive
Explanation
The HSE proposes to extend this contract for a period of 3 years and award the contract without prior publication of a call for competition in the Official Journal of the European Union. The relevant portions of the Article 72(1)(b) and the justification for using these are outlined.
1. Contracts and framework agreements may be modified without a new procurement procedure in accordance with this Directive in any of the following cases:
(b): for additional works, services or supplies by the original contractor that have become necessary and that were not included in the initial procurement where a change of contractor:
(i) cannot be made for economic or technical reasons such as requirements of interchangeability or interoperability with existing equipment, services or installations procured under the initial procurement; and
(ii) would cause significant inconvenience or substantial duplication of costs for the contracting authority. However, any increase in price shall not exceed 50 % of the value of the original contract.
The transfer of payroll in the HSE from one supplier to another is a major project requiring substantial local payroll and project resources.
1)Timeframe: The timeframe for the transfer of payroll is in the region of 18-months based on the current rollouts of NiSRP and previous rollouts from Unipay to Resourcelink. A change of vendor in the required timeframe to ensure no extension of current Zellis contract and to allow NiSRP to be implemented as per the current plan would require implementation to be completed by end of Q4 2022 reducing the implementation timeframes to approx 9 months. This timeframe would place significant pressure on limited HSE resources to deliver parallel projects.
2) Resources: The transfer of the current solution to an alternative provider would result in 3 implementations being run in parallel, calling on the same limited local payroll resources as is currently planned to support NiSRP.
Justification for Article 72 1 (b) (II) Change of supplier would cause significant inconvenience for the following reasons:
Requirement for new interfaces between the HSE and the supplier to be created
Planned interfaces for Migration of Resourcelink to SAP would need to be rewritten
Payroll Staff would need to be trained on new methods of operation & software
Staff would need to be trained on the operation of the new online Payslip solution
Would result in increased costs.
1. Contracts and framework agreements may be modified without a new procurement procedure in accordance with this Directive in any of the following cases:
(b): for additional works, services or supplies by the original contractor that have become necessary and that were not included in the initial procurement where a change of contractor:
(i) cannot be made for economic or technical reasons such as requirements of interchangeability or interoperability with existing equipment, services or installations procured under the initial procurement; and
(ii) would cause significant inconvenience or substantial duplication of costs for the contracting authority. However, any increase in price shall not exceed 50 % of the value of the original contract.
The transfer of payroll in the HSE from one supplier to another is a major project requiring substantial local payroll and project resources.
1)Timeframe: The timeframe for the transfer of payroll is in the region of 18-months based on the current rollouts of NiSRP and previous rollouts from Unipay to Resourcelink. A change of vendor in the required timeframe to ensure no extension of current Zellis contract and to allow NiSRP to be implemented as per the current plan would require implementation to be completed by end of Q4 2022 reducing the implementation timeframes to approx 9 months. This timeframe would place significant pressure on limited HSE resources to deliver parallel projects.
2) Resources: The transfer of the current solution to an alternative provider would result in 3 implementations being run in parallel, calling on the same limited local payroll resources as is currently planned to support NiSRP.
Justification for Article 72 1 (b) (II) Change of supplier would cause significant inconvenience for the following reasons:
Requirement for new interfaces between the HSE and the supplier to be created
Planned interfaces for Migration of Resourcelink to SAP would need to be rewritten
Payroll Staff would need to be trained on new methods of operation & software
Staff would need to be trained on the operation of the new online Payslip solution
Would result in increased costs.
IV.1.8)
Information about the Government Procurement Agreement (GPA)
The procurement is covered by the Government Procurement Agreement
: yes
IV.2)
Administrative information
Section V: Award of contract
Contract No: 1
Title: Provision of Payroll Processing Services
V.2)
Award of contract
V.2.1)
Date of conclusion of the contract
07/09/2022
V.2.2)
Information about tenders
Number of tenders received:
1
The contract has been awarded to a group of economic operators
:
noV.2.3)
Name and address of the contractor
ZELLIS
740 Waterside Dr, Aztec W, Almondsbury
Bristol, UK
BS32 4UF
UK
NUTS code:
UK -
UNITED KINGDOM
The contractor is an SME : yes
V.2.4)
Information on value of the contract/lot (excluding VAT)
Initial estimated total value of the contract/lot:
3322410.00
EUR
Total value of the contract/lot:
3322410.00
EUR
Section VI: Complementary information
VI.4)
Procedures for review
VI.4.1)
Review body
High Courts of Ireland
Four Courts
Inns Quay
Dublin 7
IE