Microsoft Dynamics AX Support Services and Development Framework

EirGrid plc

EirGrid would like to establish a Framework Agreement for the provision of support and maintenance and development of all the instances of Microsoft Dynamics AX, and for all future system projects and change requests as required.
The Framework Agreement period will be for an initial duration of four years with the option to extend annually for up to an additional four years, subject always to the satisfactory performance of the supplier. EirGrid envisages this project being a solution which will evolve over time and therefore intends awarding a contract with a potential maximum relationship of 20 years including options for renewal at various stages over the life of the arrangement.

Deadline

The time limit for receipt of tenders was 2019-01-28. The procurement was published on 2018-12-18.

Suppliers

The following suppliers are mentioned in award decisions or other procurement documents:

• Hitachi Solutions Europe Ltd
• Hitachi Solutions Europe Ltd

Who?

• EirGrid plc

What?

Where?

• United Kingdom › Northern Ireland

Procurement history

Date	Document
2018-12-18	Contract notice
2019-12-17	Contract award notice
2024-08-01	Contract award notice
2026-02-04	Contract award notice

Contract notice (2018-12-18)
Object
Scope of the procurement
Title: Software-related services
Reference number: ENQEIR645
Short description:
“EirGrid would like to establish a Framework Agreement for the provision of support and maintenance and development of all the instances of Microsoft...”
Notice metadata
Original language: English 🗣️
Document type: Contract notice
Nature of contract: Services
Regulation: European Union, with participation of GPA countries
Common procurement vocabulary (CPV)
Code: Software-related services 📦
Additional CPV: Financial analysis and accounting software package 📦
Place of performance
NUTS region: Northern Ireland 🏙️

Procedure
Procedure type: Negotiated procedure
Type of bid: Submission for all lots
Award criteria
The most economic tender

Contracting authority
Identity
Country: Ireland 🇮🇪
Awarding authority type: Utilities entity
Awarding authority name: EirGrid plc
Postal address: Block 2 - The Oval, 160 Shelbourne Road
Postal code: Dublin 4
Postal town: Ballsbridge
Contact
Internet address: http://www.eirgrid.com 🌏
E-mail: sinead.connolly@eirgrid.com 📧
Phone: +353 12370335 📞
URL for documents: http://irl.eu-supply.com/app/rfq/rwlentrance_s.asp?PID=139727&B=ETENDERS_SIMPLE 🌏
URL for participation: http://irl.eu-supply.com/app/rfq/rwlentrance_s.asp?PID=139727&B=ETENDERS_SIMPLE 🌏

Reference
Dates
Date dispatched: 2018-12-18 📅
Submission deadline: 2019-01-28 📅
Publication date: 2018-12-21 📅
Identifiers
Notice number: 2018/S 246-566235
OJ-S issue: 246
Additional information

“The total estimated spend of this contract is for the initial duration of four years and the option to extend annually for up to an additional 4 years.”
Source: OJS 2018/S 246-566235 (2018-12-18)

Contract award notice (2019-12-17)
Object
Scope of the procurement
Short description:
“EirGrid has established a framework agreement for the provision of support and maintenance and development of all the instances of Microsoft Dynamics AX,...”
Total value of the procurement: 4 500 000 EUR 💰
Notice metadata
Document type: Contract award notice

Procedure
Type of bid: Not applicable

Contracting authority
Identity
Postal address: Block 2 — The Oval, 160 Shelbourne Road

Reference
Dates
Date dispatched: 2019-12-17 📅
Publication date: 2019-12-19 📅
Identifiers
Notice number: 2019/S 245-604350
Refers to notice: 2018/S 246-566235
OJ-S issue: 245
Additional information

“The total estimated spend of this contract is for the initial duration of 4 years and the option to extend annually for up to an additional 4 years.”
Source: OJS 2019/S 245-604350 (2019-12-17)

Contract award notice (2024-08-01)
Object
Scope of the procurement
Title: Microsoft Dynamics AX Support Services and Development Framework
Short description:
“EirGrid has established a framework agreement for the provision of support and maintenance and development of all the instances of Microsoft Dynamics AX,...”
Type of contract: Services
Products/services: Software-related services 📦
Total value of the procurement (excluding VAT): 4 500 000 EUR (framework approximate) 💰
Maximum value of the framework agreements in this notice: 4 500 000 EUR 💰
Description
Description of the procurement:
“EirGrid has established a framework agreement for the provision of support and maintenance and development of all the instances of Microsoft Dynamics AX,...”
Additional information:
“The total estimated spend of this contract is for the initial duration of 4 years and the option to extend annually for up to an additional 4 years.”
Type of contract: Services
Products/services: Software-related services 📦
Additional products/services: Financial analysis and accounting software package 📦
Financial analysis software package 📦
Financial systems software package 📦
Financial information systems 📦
Financial analysis and accounting software development services 📦
Financial analysis software development services 📦
Financial systems software development services 📦
Information about options
Options ✅
Description of options:
“The framework agreement period will be for an initial duration of 4 years with the option to extend annually for up to an additional 4 years, subject always...”
Title
Lot Identification Number: LOT-0000

Procedure
Type of procedure
Legal basis: Directive 2014/25/EU

Award of contract
Lot Identification Number: LOT-0000
Contract Number: Hitachi
Date of conclusion of the contract: 2019-12-06 📅
Title: Microsoft Dynamics AX Support Services and Development Framework
Information on value of the contract/lot (excluding VAT)
Total value of the contract/lot: 4 500 000 EUR 💰
Re-estimated value of the framework agreement: 4 500 000 EUR 💰
Tender identifier: Hitachi
Identifier of lot or group of lots: LOT-0000
Information about tenders
Name of the tendering party: Hitachi
Name and address of the contractor
Name: Hitachi Solutions Europe Ltd
National registration number: GB 830 5295 39
Postal address: 25 Old Broad Street
Postal code: 0
Postal town: London
Region: Camden and City of London 🏙️
Country: United Kingdom 🇬🇧
E-mail: cwilkinson@hitachisolutions.com 📧
URL: http://www.hitachi-solutions.com 🌏

Contracting authority
Name and addresses
Name: EirGrid plc
National registration number: N/a
Postal address: Block 2 — The Oval, 160 Shelbourne Road
Postal town: Ballsbridge
Region: Dublin 🏙️
Country: Ireland 🇮🇪
Contact point: Sinéad Connolly
E-mail: sinead.connolly@eirgrid.com 📧
Phone: +353 12370335 📞
URL: http://www.eirgrid.com 🌏

Complementary information
Additional information

“The total estimated spend of this contract is for the initial duration of 4 years and the option to extend annually for up to an additional 4 years.”
Review body
Name: The High Court
National registration number: 000
Postal address: Four Courts
Postal town: Dublin
Region: Dublin 🏙️
Country: Ireland 🇮🇪
Phone: +353 18886000 📞
URL: http://www.courts.ie 🌏

Changes
Other additional information

“Article 89.1 (b) of the Utilities Directive (2014/25/EU) Under Tender ENQEIR645, EirGrid has contracted with the Service Provider for “Support and System...”

Other additional information

Article 89.1 (b) of the Utilities Directive (2014/25/EU)
Under Tender ENQEIR645, EirGrid has contracted with the Service Provider for “Support and System Maintenance; and Additional Services, Enhancements and Change Requests” in relation to EirGrid’s implementations of Microsoft Dynamics 365.
Under this contract the Service Provider carry out services for EirGrid including the following:
• Enhancements to our implementation of Microsoft Dynamics to support EirGrid’s evolving business processes.
• Supporting EirGrid in the application of functionality in Microsoft Dynamics.
• Modifications to our implementation of Microsoft Dynamics
• Implementation of upgrades to Microsoft Dynamics in line with Microsoft’s Upgrade Path
• Implementation of necessary bug fixes and IT security updates to the Microsoft Dynamics system as advised by Microsoft
The current version of Microsoft Dynamics in use in EirGrid is Microsoft Dynamics 2012 R3. In December 2022, Microsoft informed EirGrid that it would no longer provide IT security updates for this version of Microsoft Dynamics from January 2025, making it necessary for EirGrid to upgrade to the latest version of Microsoft Dynamics, namely “Microsoft Dynamics 365 Finance and Operations”.
As noted above, EirGrid’s contract with the Service Provider includes assistance and support for upgrades to Microsoft Dynamics. However, this next version of Microsoft Dynamics is a cloud (software as a service) based version of the system. Upgrading to the cloud version of Microsoft Dynamics is both complex and also resources/time intensive. The Service Provider has been assisting EirGrid since it was informed of Microsoft’s plans, by setting up two upgrade projects as follows:
(i) Upgrade of the EirGrid Corporate Instance of Microsoft Dynamics
(ii) Upgrade of the SEMO Instance of Microsoft Dynamics.
Both of these projects are currently ongoing.
EirGrid is heavily reliant on the Service Provider’s expertise and technical knowledge to implement these upgrade projects.
EirGrid require a modification to the original contract value in order for the Service Provider to finalise these complex projects to implement the latest version of Microsoft Dynamics.
The Service Provider have the requisite knowledge of EirGrid’s implementation of Microsoft Dynamics (as they have worked for the last few years on the planning, design and implementation phases of the upgrade projects). The introduction of a new integration and support partner at this crucial time, would involve a significant migration period. This exercise would require efforts from both the Service Provider and the new contractor for a period of months at a combined estimated cost of approximately €1m. This would cause significant inconvenience and duplication of cost associated with the knowledge transfer from the existing contractor to a new one. On this basis a change of contractor would not be economically viable. In addition, it would not be technically feasible to change contractor and deliver these upgrade projects before the current systems go out of support in January 2025. That would expose EirGrid to an unacceptable operational IT security risk.

Main reason for change: Need for additional works, services or supplies by the original contractor.
New value
Text:
“increase in value of €2.5 Million from €4.5 Million - €7 Million”
Source: OJS 2024/S 151-469682 (2024-08-01)

Contract award notice (2026-02-04)
Object
Scope of the procurement
Total value of the procurement (excluding VAT): 7 400 000 EUR 💰

Award of contract
Information on value of the contract/lot (excluding VAT)
Total value of the contract/lot: 7 400 000 EUR 💰

Contracting authority
Name and addresses
Postal code: Dublin 4

Complementary information
Review body
Dublin

Changes
Other additional information

“Regulation 97(1)(b) permits a modification for the provision of additional works/services or supplies (irrespective of their value) by the original...”

Other additional information

Regulation 97(1)(b) permits a modification for the provision of additional works/services or supplies (irrespective of their value) by the original contractor that have become necessary and which were not included in the original procurement where a change of contractor:
• cannot be made for economic or technical reasons such as requirements of interchangeability or interoperability with existing equipment, software, services or installations procured under the initial procurement; and
• would cause significant inconvenience or substantial duplication of costs for the contracting entity.
(i) Additional works/services/supplies to be provided by existing contractor
Microsoft introduced mandatory annual scheduled upgrades for Dynamics 365
Previously, upgrades were done on a more optional basis wherein EirGrid had a choice whether to stay “locked” in on a current version of the system or undergo a major version upgrade.
These mandatory upgrades were rolled out by Microsoft to ensure companies are running the latest and most secure compliant version of the software. Remaining on an older version opens the system to cyber security risks.
As a result, the contractor had to provide impact assessment for each of the upgrades which included reviewing functionality changes and how they will impact the EirGrid system, end to end testing in two testing environments, deployments across all EirGrid environments from “Development to Live”, and hyper care. The contractor had to deploy an additional team to support EirGrid with any issues, bug fixes, and inquiries, in a timely and efficient manner to ensure system stability. The contractor also assisted EirGrid to re-design test plans as a result of technical implementation issues with the upgrade and transition from the on-premises “Microsoft Dynamics AX 2012 R3” to the Cloud based “Microsoft Dynamics 365 Finance and Operations.
(ii) requirements of interchangeability…..with existing equipment, software, services or installations;
Introducing a new contractor at this stage is not feasible due to the extensive knowledge and familiarity the contractor has with EirGrid's systems. A new contractor would not guarantee resolution of existing technical issues and would likely cause delays due to onboarding and transition processes.
The Contractor has been working with EirGrid since 2019 on all Microsoft upgrades required for the EirGrid systems. They possess the critical technical knowledge and expertise necessary for resolving ongoing issues, as they have implemented circa 800 customisations in Dynamics since its inception and creating special functionalities for EirGrid. Transferring this knowledge to a new contractor would risk disrupting the system, complicate, and delay the implementation time.
(i) requirements of…….interoperability with existing equipment, software, services or installations;
The contractor has worked with EirGrid since 2019 and have deep business knowledge and familiarity with certain core mission critical systems. They understand EirGrid’s operational requirements, which allows them to deliver efficiently and in a timely manner. Replacing the contractor at this stage would compromise interoperability and continuity in EirGrid. The knowledge that the contractor have of EirGrid operational requirements is not easily transferrable in a short duration of time and would put EirGrid at significant risk if we were to transition to a new contractor prior to the completion of the new tender.
The contractor is embedded in the delivery of the Microsoft Dynamics upgrades, which include issues, bug fixes, and inquiries, in a timely and efficient manner to ensure system stability. Halting or reassigning this work would risk delays to key programme and introduce significant remobilisation and knowledge transfer challenges. Therefore, continuity of service and contractor involvement is essential to ensure timely and cost-effective delivery of these upgrades.
(iv) Duplication of costs and inconvenience;
Changing the existing contractor at this stage would cause significant inconvenience and lead to substantial duplication of costs. EirGrid’s contractor have already gone through onboarding, built up domain knowledge, and developed tailored solutions for our programmes. If EirGrid switched contractor, EirGrid would need to repeat onboarding, transfer knowledge, and rebuild systems already in progress. This would be economically unviable.
Financial Impacts: A failure to increase the contract value at this point would also mean EirGrid halting the critical upgrades and integrations currently underway to another set of mission critical systems, the costs of which would be substantial.
Time constraints: EirGrid faced time constraints to go live with the upgraded finance business system, making it imperative to continue working with the Contractor to fix the technical errors rather than switching contractors.
Operational Impacts: The critical nature of having a functioning financial system for EirGrid, as it has significant operational impact to the business employees, suppliers and its external customers. It affects payments to suppliers, purchase orders, and recording timesheets. Failure to resolve these issues could lead to significant inconvenience and additional costs for EirGrid.

Main reason for change: Buyer correction
New value
Text:
“In 2024, the contract value was increased by €2.5M (from €4.5M to €7M), as a result of Microsoft declaring in 2022 that the on-premise version of Dynamics...”
Information about modifications
Version of the previous notice to be changed: 469682-2024
Source: OJS 2026/S 026-087740 (2026-02-04)

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