Scottish Water is currently out to tender with a major framework contract for Digital Directorate Partners covering Networks, Security & Applications Management with an estimated total value of £230 million (exc VAT).

The water company has successfully implemented a cloud-first strategy, replacing many of its legacy enterprise applications with evergreen SaaS solutions. Its primary cloud platform, Microsoft Azure, serves as the foundation for building and running innovative solutions.

Scottish Water is also in the process of modernising its network offerings, adopting a software-defined network approach.

The utility requires a digital supply chain that facilitates rapid solution delivery while supporting the ongoing maintenance and modernisation of its infrastructure.

Seeting out the context, the utility says the convergence of IT, Smart IoT Technology, and Operational Technology (OT) is accelerating and its assets are increasingly connected to the internet through a growing array of sensors.

Scottish Water is seeking supplier partnerships that operate at scale, with extensive experience and expertise – requirements include:

• suppliers who can manage a broad supply chain and engage with niche providers as needed
• partners who are integrators and expert advisers in AI, automation, digital twins, and other relevant technologies.

The water company is inviting partners to collaborate with it in the following areas:

Networks & Security (Master Service Agreement)

The preference is for converged network and security services - bidders with capabilities in security services or network services only are however encouraged to pre-qualify. This category also includes a requirement for interim on-premises data centre support. However, bidders without data centre support capabilities will not be at a disadvantage.

Applications Management (Master Service Agreement)

Service includes applications management for core line of business (LOB) applications along with a service that supports business critical Azure cloud applications, integrations and analytics solutions, along with the enterprise-scale platform they consume. Scottish Water also require a service that supports its M365 platform and its components. Bidders may pre-qualify across all Lots under this service or select the LOB services only or the Microsoft Azure and M365 support services only.

The company is currently considering insourcing the Service Desk function, but says it remains interested in the opportunities that the market can offer before finalising decision.

The contract is being tendered in the following Lots:

• Lot 2B - Azure Products & M365 services ( £15 million)
• Lot 2C Combined Line of Business & Azure Application Management (£100 million)
• Lot 1C Converged Networks and Security Operations (£130 million)
• Lot 2A Line of Business Applications ( £85 million) Scottish Water’s SaaS applications estate includes MS Dynamics 365 for CRM, Salesforce for Field Services, Oracle Fusion (Financials) Workday (HCM), Oracle CCB (Billing) Oracle Primavera
• Lot 1A Networks Operations (£75 million)
• Lot 1B Security Operations (£55 million)

The MSAs will be awarded for an initial term of 4 years with up to 4 years worth of extension options (split into 2x2 year terms) available at the sole discretion of Scottish Water. The total MSA contract duration will be for a maximum term of 8 years.

The procurement involves the establishment of a framework agreement with several operators.

Time limit for receipt of tenders or requests to participate is 28 April 2025

To access this opportunity register using the following link : https://atamis-scottishwater.my.site.com/s/Welcome

Click here to access the tender documentation online