Mobilising System Replacement Contract

Description

Leicestershire Fire and Rescue ("the Authority") awarded a contract for the delivery of a mobilising solution and associated support and maintenance services ("Services") to Systel SA ("Systel") ("the Contract"). The initial term of the Contract expires on 31 October 2024 and there is an ability to extend beyond the initial term by up to 2 further years, up to 31 October 2026 which has not and will not be exercised by the Authority. Systel has been placed into administration in France and has applied to the French courts for protection which could allow Systel to renegotiate unprofitable contracts or parts thereof. The Services represent critical infrastructure to enable the Authority to discharge its statutory duties under the Fire and Rescue Services Act 2004. Any disruption to the Services would pose significant issues for the Authority and could impact the safety of the public. Whilst Systel has not exercised the right to terminate the whole of the Contract, it has sought to renegotiate its terms. The Authority considers there is significant risk on the reliability of the availability of the Contract and the ability for Systel to perform the Services. The Authority does not consider it can continue with the existing arrangements with Systel beyond 31 October 2024. This is for the reasons set out in this notice and in light of the Authority being made aware of Scottish Fire and Northern Ireland Fire also sharing similar concerns to the Authority and taking action to terminate the high-value contracts they hold with Systel following being made aware of its administration status.