It Is Recommended That These Instructions to Tenderers Be Carefully Examined Before Preparing

March 13, 2017 Ref.no. 16-1828285

Ministry of Taxation Nicolai Eigtveds Gade 28 DK 1402 – København K Tel. +45 33 92 33 92 Mail [email protected] www.skm.dk

Instructions to Tenderers Open procedure regarding Cloud Services (SaaS, IaaS, PaaS and FaaS) and related support services

Contract Notice no. 2017/S 052-096270

[It is recommended that these Instructions to Tenderers be carefully examined before preparing the tender. The tenderer should note that it is exclusively the responsibility of the tenderer that the tender is complete and in compliance with these Instructions to Tenderers]. 1. CONTRACTING AUTHORITY The Ministry of Taxation Nicolai Eigtveds Gade 28 DK-1402 Copenhagen K Website: www.skm.dk Contact person: Mette Lind Jensen E-mail: [email protected]

2. THE LEGAL FRAMEWORK This procedure will be conducted as an open procedure pursuant to the public procurement rules.1 The procedure consists of the following phases and milestones: 1) Publication of Contract Notice and tender documents. 2) Preparation of tender – The tenderer prepares its tender on the basis of the tender documents and submits the tender within the deadline for submission of tenders, cf. clause 4.3. During this period, the tenderer is offered and encouraged to make use of the opportunity of submitting written questions, cf. clause Written questions. 3) The personal situation of the tenderer - After opening the tenders, the contracting authority will initially verify whether the tenderer has submitted the European Single Procurement Document (ESPD), and whether the submitted ESPD contains information which may exclude the tenderer from participating in the tender procedure. 4) The tenderers economic and financial standing – The contracting authority will here after evaluate whether the tenderer must provide documentation that fulfils the requirements in section III.1.2) of the Contract Notice with respect to economic and financial standing. Alternatively, the winning tenderer shall provide the documentation prior to signing the Contract. 5) Evaluation of the tenders - Then the contracting authority will commence the evaluation of the tenders on the basis of the evaluation criteria set out in

1 Cf. sections 56-57 of the Danish Public Procurement Act (udbudsloven), Act no 1564 of 15 December 2015 (the Danish implementation of Directive 2014/24/EU). clause 5.6. Prior to the contracting authority’s decision to award the Contract, the contracting authority is obligated to require that the tenderer to whom the contracting authority intends to award the Contract submit documentation for the information submitted in the ESPD. 6) Award of the Contract - The contracting authority will decide on the award of the Contract, and all tenderers will be notified of this decision. The Contract is considered concluded when it is signed. The Contract will not be signed until the expiry of a standstill period. After signature of the Contract, the contracting authority will publish a notice in TED regarding the award of the Contract, and the tender procedure is thus completed.

Each of the phases and milestones in the tender stage are examined below.

3. MAIN REASONS FOR THE CONTRACTING AUTHORITY’S DECISION NOT TO SUBDIVIDE INTO LOTS With reference to section 49 (2) of the Danish Public Procurement Act, the contracting authority has chosen not to subdivide the Contract into lots based on the following assessment:

- A subdivision into lots will not provide for commercial/economic benefits, - The subject of the Contract is not suitable for subdivision into lots, - A subdivision into lots will most likely impose substantial technical challenges and risks on the contracting authority as well as compromise security. Costs associated with overcoming challenges and risks of this nature, will be disproportionate taking into consideration, that there are no evident gains in subdividing the contract into lots, - And the costs associated with the subsequent contract administration relative to the Contract value will be disproportionate.

4. PREPARATION OF TENDERS

4.1 The tender documents The contracting authority has drawn up tender documents for the tenderer’s use when preparing the tender.

The tender documents consist of the following elements:  Contract Notice, cf. above  These Instructions to Tenderers.  Enclosures 1-3 to these Instructions to Tenderers: o Enclosure 1: Template cover letter for the tenderer's use when submitting the tender o Enclosure 2: The European Single Procurement Document (XML- file) o Enclosure 3:Letter of Comfort  Draft Contract  Draft Annexes 1-5 to the Contract. The complete tender documents are available from the following website: http://www.skm.dk/ministeriet/ministeriet/udbud.

4.2 Guidelines for preparing the tender

4.2.1 Introduction The following is an explanation as to the contents and structure of the tender (clause 4.2.2), and the formal requirements applicable to the tender (clause Formal requirements of the tender).

It is the sole responsibility of the tenderer to submit a complete tender which complies with the directions set out in the Instructions to Tenderers.

4.2.2 The contents and structure of the tender 4.2.2.1 Variants As stated in the Contract Notice, variants will not be accepted. Only one tender from each tenderer will be accepted.

4.2.2.2 The European Single Procurement Document The tenderer shall complete and attach the European Single Procurement Document.

The European Single Procurement Document shall be filled out electronically – please follow this link: https://ec.europa.eu/growth/tools-databases/espd/welcome.

When accessing the European Single Procurement Document from this website, the published XML-file, cf. Enclosure 2, shall be used. The tenderer shall export a new XML-file and submit this file as part of the tender. The tenderer is furthermore encouraged to print and sign the filled out European Single Procurement Document in pdf-format and submit this as part of the tender.

4.2.2.3 Requirements and Reservations In the tender documents, the following two requirement categories are used:  Mandatory Requirements  Evaluation Requirements

4.2.2.4 Mandatory Requirements A Mandatory Requirement is a fundamental requirement which must unconditionally be complied with. Reservations to Mandatory Requirements are not accepted. Therefore reservations must not be made to Mandatory Requirements. The tenderer must comply with the Mandatory Requirements in order for the tender to be in compliance with the tender documents.

4.2.2.5 Evaluation Requirements The tenderer is entitled to make reservations to Evaluation Requirements, e.g. when responding to the Evaluation Requirements, cf. clause 4.2.2.6. Reservations to Evaluation Requirements, if any, will be included in the evaluation, cf. clause 5.6.

If the tenderer has filled in/completed one or more Annexes to the Contract according to the instructions stated in the Annexes, this is not considered a reservation.

4.2.2.6 Structure and completion of the tender documents When preparing the tender, the tenderer is asked to follow the structure with related instructions set out below in paragraphs A - D. If the tenderer chooses to deviate from the instructions, the tenderer should be especially careful to check that the tender contains all necessary information.

Tenderers are specifically made aware not to submit information in the tender which may conflict with fundamental elements in the tender documents, e.g. the Mandatory Requirements.

A. Tender cover letter The tenderer is asked to use the template cover letter, cf. Enclosure 1. The tender cover letter should be completed in accordance with the instructions set out in the letter. The tender cover letter should unambiguously state which economic operator or group who has submitted the tender. In the tender cover letter, the tenderer should state a contact person, email address and telephone number for the contracting authority’s use in connection with the procedure. It is imperative that the tender cover letter includes the section ‘Written confirmation’, by which the tenderer signs to agree that in case of any conflict between the submitted Standard Terms, cf. this Annex 5, and the Contract clauses 3-15, the Contract clauses shall prevail.

B. The European Single Procurement Document (ESPD) The tenderer is to complete and attach the ESPD for preliminary fulfilment of the contracting authority’s suitability requirements. Please notice that if the tenderer is a consortium, the tenderer must submit an ESPD for all participants in the consortium. If the tenderer relies on other entities concerning economic capacity, the tenderer shall submit an ESPD for all such supporting entities. Please refer to the Danish Competition and Consumer Authority’s guidance paper regarding the ESPD.

C. Draft Contract The contracting authority has drawn up a draft Contract. The tenderer is not supposed to fill in or complete the Contract. The Contract, in its entirety, is a Mandatory Requirement, and reservations must not be made to the Contract, cf. clause 4.2.2.4. Tenderers are specifically made aware not to submit information that may conflict with the provisions of the Contract, e.g. when submitting the Standard Terms as Annex 5 in the tender.

D. Draft Annexes The contracting authority has drawn up draft Annexes 1-5 to the Contract.

In each Annex, it is indicated whether the tenderer shall fill in/complete or not fill in/complete the Annex in question.

For the purpose of the tender procedure, the tenderer shall provide answers and/or confirmation in respect of the Evaluation Requirements (Annex 1 - Requirement Specification) in accordance with the guidelines set forth in Annex 1.

Annexes 2 and 5 shall furthermore be completed in accordance with the included guidance in the respective Annexes.

The tenderer is not supposed to fill in or complete Annexes 3 and 4 to the Contract. Annexes 3 and 4, in their entirety, are Mandatory Requirements, and reservations must therefore not be made to Annexes 3 and 4, cf. clause 4.2.2.4

If the tenderer is in doubt about the filling in/completion of the Annexes or in case of uncertainty as to whether certain reservations will lead to a rejection of the tender, the tenderer is very much encouraged to submit written questions, cf. clause Written questions below.

4.2.3 Confidentiality When the tenderer prepares its tender, the tenderer should be aware that certain documents in the contracting authority’s invitation to tender, including tenders received, may be subject to legal rules regarding access to documents with authorities within the public administration. This means that competitors, etc., may request access to tenders submitted. According to practice from the Danish Complaints Board for Public Procurement (Klagenævnet for Udbud), requests for access to documents from other operators participating in the tender procedure must be accepted by the contracting authority. However, it is considered in the assessment whether the operator having submitted the tender has asked that part of the tender be treated confidentially and has indicated the precise information/elements of the tender which are to be treated confidentially.

If the tender contains information or elements which, for business reasons, are required exempted from access to documents, the tenderer should state this in its tender. Even if the tenderer has marked certain parts of the tender as confidential, the contracting authority is entitled and obliged to give access to documents to the extent required by the law.

4.2.4 Negotiations not permitted When preparing the tender, the tenderer should be aware that the contracting authority is not allowed to negotiate the tenders submitted by the tenderers. The contracting authority will adhere to the public procurement rules regarding negotiation.

Thus, no contract or price negotiations will be undertaken and, therefore, the tenderers should ensure that their tenders are drawn up so as to allow a conclusion of the Contract without prior negotiations between the tenderer and the contracting authority.

It is therefore highly desirable that the tenders are comprehensive and examine all relevant aspects, contain all necessary information and are precise in every respect.

4.3 Formal requirements of the tender

4.3.1 Deadline for submission of tender The deadline for submission of tender is:

Tuesday, 19 April 2017, at 13:00 (DK time). It is especially important that this deadline is complied with. Any tenders received after this deadline will not be considered.

4.3.2 Submission of tender The contracting authority would prefer if the tender is submitted in 2 (two) paper copies in a sealed envelope marked:

“Ministry of Taxation, Att.: Mette Lind Jensen – Tender for Contract concerning the Acquisition of Cloud Services (SaaS, IaaS, PaaS and FaaS) and related support services.”

The tender shall be delivered to the following address:

The Ministry of Taxation Nicolai Eigtveds Gade 28 DK-1402 Copenhagen K Attn.: Mette Lind Jensen

The tender cannot be submitted by e-mail.

The tenderers are furthermore invited to enclose a soft copy of the tender by use of a USB-stick or another equivalent medium. In case of any discrepancy between the hard copy and the soft copy tender, the hard copy tender will take precedence.

The tender should contain:

- Cover letter, cf. clause 4.2.2.6 item A, - The European Single Procurement Document(s), cf. clause 4.2.2.6 item B, - Annexes which are to be filled in/completed by the tenderer, cf. clause 4.2.2.6 item Draft.

Thus, the tenderer is not required to include the Contract and those Annexes to the Contract which the tenderer is not supposed to fill in/complete, cf. 4.2.2.6 item Draft, since they are deemed to have been accepted by the tenderer.

4.3.3 Language The tender must be in English.

4.3.4 Period of validity of the tender The tenderer must keep open its tender for acceptance for 6 months from expiry of the tender submission deadline. 4.4 Written questions The tenderer may submit written questions regarding the tender documents. The tenderer should note in that connection that it is exclusively the responsibility of the tenderer that the tender is complete and in compliance with the instructions set out in the tender documents. It is therefore often expedient that the tenderer uses the opportunity of asking questions. All questions should contain a clear reference to which document, paragraph or paragraphs in the tender documents the question concerns. The questions must be submitted in English and must be submitted in writing to the e-mail address stated above in clause 1.

The tenderers’ written questions and the contracting authority’s answers will be depersonalised and published regularly on the contracting authorities’ website: http://www.skm.dk/ministeriet/ministeriet/udbud. The tenderers are invited to continuously keep informed. The answers will only be provided in English.

The contracting authority would prefer that the questions are submitted at latest on 4 April 2017 at 13:00 (DK time). Questions received within this date and time will in any case be answered. If the contracting authority receives questions after this date and time, the contracting authority will answer such questions within 11 April 2017 at 11:59 a.m. (DK time), provided that the contracting authority has received the question in due time to acquire the necessary information and answer the question no later than six days before the deadline for submission of tender. Questions received later than six days before the deadline for submission of tender cannot be expected answered, but see section 93 (4) no. 1 of the Danish Public Procurement Act.

5. THE CONTRACTING AUTHORITY’S EVALUATION OF TENDERS 5.1 Opening of tenders The contracting authority will not have access to the content of the tenders submitted until after the deadline for submission of tender.

The tenderers are not permitted to attend the opening of the tenders.

5.2 Formal errors and omissions in the tender and clarifying questions After opening the tenders, the contracting authority will initially check whether the tenders comply with the formal requirements of the tender documents.

If the tender does not meet the formal requirements stated in the tender documents, the contracting authority reserves the right to use the procedure set out in section 159 (5) and (6) of the Danish Public Procurement Act. Regardless of the use of the word “shall”, “must” or “is/are to” in the tender documents, the contracting authority reserves the right to obtain further information within the scope of section 159 of the Danish Public Procurement Act. The contracting authority is not obliged to obtain further information or documentation from the tenderers.

Finally, the contracting authority reserves the right to clarify ambiguities, if any, within the scope of the public procurement rules.

5.3 The personal situation of the tenderers The contracting authority will check whether the ESPD contains information which may entail that the tenderer is excluded from participation in the tender procedure. The contracting authority may ask the tenderer to document the information in the ESPD.

5.4 The tenderer’s economic and financial standing The contracting authority will then check whether the tenderer has submitted the documentation required regarding economic and financial standing, cf. section III.1.2) of the Contract Notice and whether the tenderer meets the minimum requirements herein.

The assessment of the tenderer’s economic and financial standing concerns the tenderer’s suitability for performing the Contract. Thus, the assessment does not concern the tender submitted. If the tenderer does not meet the requirements regarding economic and financial standing, the tenderer will be rejected and the contracting authority will not evaluate the tenderer’s tender. If the tenderer complies with the minimum requirements, the contracting authority will evaluate the offer as stated below in clauses 5.5.-5.6.

5.5 Assessment of reservations The contracting authority will then evaluate whether the tenders contain reservations, cf. clause 4.2.2.4, which will entail that the tender is to be rejected as non-compliant.

5.6 Evaluation criteria The contracting authority will evaluate the tenders on the basis of the award criterion “best price-quality ratio”

In that connection, the contracting authority will apply the following sub-criteria: 1) Price 40 % The sub-criterion “Price” will be evaluated on the basis of the “Evaluation Price”, cf. Annex 2, which will be calculated based on the tenderers completion of the excel-spreadsheet of Annex 2 as part of the tender.

Description as to how the “Evaluation Price” is calculated is set forth in Annex 2.

2) Quality 60 % When evaluating the tender with respect to the sub-criterion ”Quality”, the contracting authority will take into account the extent to which the tender complies with the stated Evaluation Requirements, cf. requirement 16 to requirement 19 in Annex 1.

The evaluation will be based on the answers (“Yes” or “No”) submitted to the Evaluation Requirements in Annex 1.

The percentage rates indicate the weighting of each sub-criterion in the evaluation of the tender.

5.7 Evaluation method

5.7.1 Assessment of the price criterion The “Evaluation Price” included in the tender evaluation is calculated as shown in Annex 2.

5.7.2 Assessment of the qualitative criteria The sub-criterion “Quality” will be evaluated as stated in clause 5.6 and on the following assessment scale:

Fulfilment of the criterion Non fulfilment of the criterion

5.7.3 Method The contracting authority will calculate whether the percentage difference in the overall weighted score of the sub-criterion “Quality” can be offset by the weighted percentage difference in the sub-criterion “Price”.

For the use of this calculation, the contracting authority will assign points to each Evaluation Requirement based on the extent to which the tender complies with the stated Evaluation Requirements, cf. Annex 1. The contracting authority will use the following point scale: Fulfilment of the Evaluation Requirement: 1 point Non fulfilment of the Evaluation Requirement: 0 point

Following the assessment of each Evaluation Requirement the contracting authority will accumulate the score on “Quality. For the purpose of calculating the best price-quality ratio as set out below the accumulated score on “Quality” is added 1 point. Thus, the span of possible points for the evaluation of the sub- criterion “Quality” is between 1 point and 12 points.

The best ratio of price and quality is identified by determining whether the percentage difference in the weighted score for “Quality” (weight of 60 %) can be offset by the weighted percentage difference in “Price” (weight of 40 %).

The best price-quality ratio is identified by determining whether the percentage difference in the weighted score for the qualitative evaluation criteria, i.e. “Quality” (weighting of 60 %), can be offset by the weighted percentage difference in “Price” (weighting of 40 %).

All the tenders are compared two-by-two in order to evaluate the advantages of the tenders relative to the evaluation criteria stated. When comparing the two tenders, the advantages of the tenders are evaluated relative to the tender (of the two) having achieved the lowest overall weighted score for the qualitative evaluation criteria.

This means that when comparing the two tenders, where the percentage difference between the tenders is calculated by use of the formula "percentage difference = (y-x)/x" and where "x" and "y" represent the respective scores and prices of the tenders compared, depending on the relevant evaluation criterion, "x" will represent the tender (of the two) having achieved the lowest overall weighted qualitative score. This also applies when "x" represents the Price of the tender in question and irrespective of whether "y" is larger than "x" in the Price comparison.

If two tenders compared have identical quality scores, the most expensive tender price of the two tenders compared will replace "x" above. This will not change the above methodology, when the tenders are compared with other tenders with no identical quality scores. Here, "x" will remain the tender of the two having achieved the lowest score on quality.

If the weighted percentage difference for the qualitative evaluation criteria of a tender exceeds the weighted percentage difference for Price, the tender having offered the best quality of the two tenders compared will be deemed to have the best price-quality ratio. If the weighted percentage difference for the qualitative evaluation criteria of a tender does not exceed the weighted percentage difference for Price, the tender having offered the lowest price of the two tenders compared will be deemed to have the best price-quality ratio.

If one of the two tenders compared is evaluated to be both better and cheaper relative to the respective evaluation criteria, that tender will be deemed to have the best price-quality ratio.

Below, two examples are inserted of how the comparison is made.

Example 1:

Sub-criteria Tenderer no. 1 Tenderer no. 2 Quality (60 %) 53 30 Price (40 %) DKK 4,500,000 DKK 3,500,000

Tenderer no. 1 has a qualitative score which is 76.67 % better than Tenderer no. 2 ((53.00-30.00) / 30.00) = 0.7667 = 76.67 %), corresponding to a weighted difference of 46.00 % (76.67% * 60 % = 46.00 %). Tenderer no. 1 has offered a price that is 28.57 % more expensive than tender no. 2 ((4,500,000- 3,500,000)/3,500,000 = 0.2857 = 28.57 %), corresponding to a weighted difference in the price of 11.43 % (28.57 % * 40 % = 11.43 %). This is illustrated in the table below:

Sub-criteria Tender no. 1 Tender no. 2 Percentage Weighted difference percentage difference Quality (60 %) 53.00 30.00 76.67 % 46.00 % Price (40 %) DKK 4,500,000 DKK 3,500,000 28.57 % 11.43 %

Tenderer no. 1 has achieved a weighted qualitative score that is 46.00 % better than Tenderer no. 2 and has offered a weighted price that is 11.43 % more expensive. The weighted qualitative difference (46.00 %) is thus greater than the weighted price difference (11.43 %). Tenderer no. 1 has therefore offered the most economically advantageous tender.

Example 2:

Sub-criteria Tender no. 1 Tender no. 2 Quality (60 %) 30.00 20.00 Price (40 %) DKK 3,600,000 DKK 2,100,000 Tenderer no. 1 has a qualitative score which is 50.00 % better than Tenderer no. 2 ((30.00-20.00) / 20.00) = 0.50 = 50.00 %), corresponding to a weighted difference of 30.00 % (50.00 % * 60 % = 30.00 %). Tenderer no. 1 has offered a price that is 71.43 % more expensive than Tenderer no. 2 ((3,600,000-2,100,000) /2,100,000 = 0.7143 = 71.43 %), corresponding to a weighted difference in the price of 28.57 % (71.4 3% * 40 % = 28.57 %). This is illustrated in the table below:

Sub-criteria Tender no. 1 Tender no. 2 Percentage Weighted difference percentage difference Quality (60 %) 30.00 20.00 50.00 % 30.00 % Price (40 %) DKK 3,600,000 DKK 2,100,000 71.43 % 28.57 %

Tenderer no. 1 has achieved a weighted qualitative score that is 30.00 % better than Tenderer no. 2 and has offered a weighted price that is 28.57 % more expensive. The weighted qualitative difference (30.00 %) is thus greater than the weighted price difference (28.57 %). Tenderer no. 1 has therefore offered the most economically advantageous tender.

5.8 Verification of the information in the European Single Procurement Document As evidence for the absence of grounds for exclusion, cf. section 135(1) or (3), the contracting authority requires the documentation referred to in section 153, cf. section 151(1) or (2).

Before the contracting authority’s decision to award the Contract, the contracting authority requires that the tenderer to whom the contracting authority intends to award the Contract submit such documentation for the information submitted in the ESPD.

The contracting authority will determine an appropriate time limit for the tenderer's presentation of the documentation, cf. section 151 of the Danish Public Procurement Act.

The contracting authority reserves the right, at any stage of the tender procedure, to require documentation of the information submitted in the ESPD, cf. section 151(2), when this is necessary in order to ensure correct performance of the tender procedure.

The contracting authority may request the tenderer to supplement or clarify the received documentation, cf. section 151(4). 6. THE AWARD OF THE CONTRACT When the contracting authority has selected the tender that provides the best price- quality-ratio on the basis of the criteria set out in clause 5.6 the contracting authority will decide on the award of the Contract.

The contracting authority will notify all tenderers of the award decision simultaneously. The notification of the unsuccessful tenderers will include a brief statement of the relevant grounds for the decision, including the relative advantages and disadvantages of the successful tender, as well as information about the date when the standstill period expires.

The contracting authority is not obliged to award the Contract and reserves the right to cancel the tender procedure.

Even though the Contract has been awarded to another tenderer, the tenderer is bound by the tender until the contracting authority has concluded the Contract, but no longer than the date specified for the tender to remain open for acceptance, cf. clause 4.3.4.

Notification of the award decision does not mean that the Contract has been concluded. The Contract is not regarded as having been concluded until it is signed. The Contract cannot be signed until the expiry of the standstill period. This period must be at least 10 calendar days calculated from the day after the day when the contracting authority has submitted notification, provided that the notification has taken place electronically, and at least 15 calendar days from the day after the day when the contracting authority has sent notification if the notification has taken place by letter.

The tenderer’s costs in connection with this tender procedure are of no concern to the contracting authority. This also applies in the event that the contracting authority has had to cancel the tender procedure without award of Contract. The contracting authority is not obliged to return the tender to the tenderer.

After signature of the Contract, the contracting authority will submit a notice regarding the award of the Contract for publication in TED. The tender procedure is then completed. 7. CHECK LIST The contracting authority has drawn up the check list below for the purpose of helping the tenderers ensure that their tender is complete. The check list contains elements which experience has shown might be overlooked by the tenderers. It is stressed once more, however, that it is exclusively the responsibility of the tenderer to submit a tender, which complies with the directions set out in the Instructions to Tenderers.

Subject Referenc e Tender cover letter with unambiguous indication of which enterprise or Clause group has submitted the tender. 4.2.2.6, Item A

The European Single Procurement Document(s) Clause 4.2.2.6, Item B

All Annexes duly filled in/completed if it is for the tenderer to fill Clause in/complete the Annexes. 4.2.2.6, Item D

Compliance with all Mandatory Requirements Clause 4.2.2.4

8. OVERVIEW OF DEADLINES IN THE TENDER PROCEDURE

Date, time Activity 4 April 2017, 13:00 (DK time) Deadline for submission of questions regarding the tender documents

11 April 2017, 11:59 a.m. (DK time) Deadline for response to questions regarding the tender documents

Tuesday, 19 April 2017, 13:00 (DK time) Deadline for submission of tender

May – June 2017 Expected award of the Contract

May – June 2017 Expected conclusion of the Contract