The Kjarni software solution (Kjarni launa- og mannauðskerfi)

The Kjarni software solution is a comprehensive payroll and human resources system. The system is designed to replace the current SAP system, which has been in use within the municipality for payroll processing. The Kjarni system includes: • payroll calculation and salary administration, • employee data and contract management, • …

CPV: 72212450 Time accounting or human resources software development services
áit fhorghníomhaithe:
The Kjarni software solution (Kjarni launa- og mannauðskerfi)
clárlann:
Kópavogsbær
uimhir dámhachtana:
25042115

1. Buyer

1.1 Buyer

Official name : Kópavogsbær
Legal type of the buyer : Regional authority
Activity of the contracting authority : General public services

2. Procedure

2.1 Procedure

Title : The Kjarni software solution (Kjarni launa- og mannauðskerfi)
Description : The Kjarni software solution is a comprehensive payroll and human resources system. The system is designed to replace the current SAP system, which has been in use within the municipality for payroll processing. The Kjarni system includes: • payroll calculation and salary administration, • employee data and contract management, • performance evaluation tools, • integration with municipal accounting systems and training platforms. This contract ensures continued operational functionality with minimal risk and interruption during a critical phase of organizational restructuring.
Procedure identifier : d2820bb5-6c4c-4d37-a915-397380cfe800
Internal identifier : 25042115
Type of procedure : Negotiated without prior call for competition

2.1.1 Purpose

Main nature of the contract : Services
Main classification ( cpv ): 72212450 Time accounting or human resources software development services

2.1.2 Place of performance

Country : Iceland
Anywhere in the given country

2.1.4 General information

Legal basis :
Directive 2014/24/EU

5. Lot

5.1 Lot technical ID : LOT-0000

Title : The Kjarni software solution (Kjarni launa- og mannauðskerfi)
Description : The Kjarni software solution is a comprehensive payroll and human resources system. The system is designed to replace the current SAP system, which has been in use within the municipality for payroll processing. The Kjarni system includes: • payroll calculation and salary administration, • employee data and contract management, • performance evaluation tools, • integration with municipal accounting systems and training platforms. This contract ensures continued operational functionality with minimal risk and interruption during a critical phase of organizational restructuring.
Internal identifier : 25042115

5.1.1 Purpose

Main nature of the contract : Services
Main classification ( cpv ): 72212450 Time accounting or human resources software development services

5.1.2 Place of performance

Country : Iceland
Anywhere in the given country
Additional information :

5.1.6 General information

The procurement is covered by the Government Procurement Agreement (GPA) : no

5.1.16 Further information, mediation and review

Review organisation : Kærunefnd útboðsmála
Organisation whose budget is used to pay for the contract : Kópavogsbær
Organisation executing the payment : Kópavogsbær
Organisation signing the contract : Kópavogsbær

6. Results

Direct award :
Justification for direct award : Partial replacement or extension of existing supplies or installations by the original supplier ordered under the strict conditions stated in the Directive
Other justification : The procurement falls under the exception (item b., paragraph 2, article 39 of Icelandic laws no. 120/2016 on Public Procurement / item b., paragraph 3, article 32, 2014/24/EU), which permits the direct award of contracts for additional supplies that are technically compatible with previous installations and where changing supplier would cause disproportionate technical difficulties. The following specific technical circumstances apply in this case: • The existing SAP payroll and HR system, in use by the municipality, is being phased out by the supplier, Origo hf., and all service, support and further development for the solution is being discontinued, creating an urgent operational need for replacement. The current version Kópavogur is using of SAP is very fragile due to lack of upgrades and no development.The Kjarni system is technically designed by Origo hf. as a successor system that is fully aligned with existing municipal data formats, interfaces, and integrations, and ensures functional continuity with minimal disruption. The payroll calculation is based on the same method as the current one being used in SAP. • Choosing an alternative solution from another supplier creates higher risks of disproportionate and complex technical migration, significant retraining, and risk of interruption in statutory payroll operations, particularly in light of ongoing organizational restructuring within the municipality. • Kjarni is not an entirely separate system, but an evolutionary continuation developed within the same company utilizing shared infrastructure, integration protocols, and support channels. Its adoption avoids redundancy, duplication, and interoperability failures that might otherwise arise. • The contract is limited in duration to three years, and is explicitly intended as a transitional operational safeguard until a competitive procurement process can be completed.

6.1 Result lot ldentifier : LOT-0000

6.1.2 Information about winners

Winner :
Official name : Origo ehf.
Tender :
Tender identifier : Human resource and payroll system
Identifier of lot or group of lots : LOT-0000
Value of the tender : 47 682 000 Iceland króna
The tender was ranked : no
Subcontracting : No
Contract information :
Identifier of the contract : Supplementary agreement to the agreement on the implementation, installation and use of AppliCon solutions from October 20, 2007
Title : 25042115: The Kjarni software solution (Kjarni launa- og mannauðskerfi)
Date on which the winner was chosen : 11/04/2025
Organisation signing the contract : Kópavogsbær

8. Organisations

8.1 ORG-0001

Official name : Kópavogsbær
Registration number : 7001693759
Department : Skrifstofa
Postal address : Digranesvegur 1
Town : Kópavogur
Postcode : 200
Country subdivision (NUTS) : Höfuðborgarsvæði ( IS001 )
Country : Iceland
Contact point : Steinn Sigríðar Finnbogason
Telephone : 00 354 441 0000
Internet address : https://www.kopavogur.is
Roles of this organisation :
Buyer
Organisation signing the contract
Organisation whose budget is used to pay for the contract
Organisation executing the payment

8.1 ORG-0002

Official name : Kærunefnd útboðsmála
Postal address : Borgartúni 21
Town : Reykjavik
Postcode : 105
Country subdivision (NUTS) : Höfuðborgarsvæði ( IS001 )
Country : Iceland
Telephone : 575 8700
Roles of this organisation :
Review organisation

8.1 ORG-0003

Official name : Origo ehf.
Postal address : Borgartúni 37
Town : Reykjavik
Postcode : 105
Country subdivision (NUTS) : Höfuðborgarsvæði ( IS001 )
Country : Iceland
Telephone : 354 569 7700
Internet address : https://www.origo.is/
Roles of this organisation :
Tenderer
Winner of these lots : LOT-0000

8.1 ORG-0004

Official name : Mercell Holding ASA
Registration number : 980921565
Postal address : Askekroken 11
Town : Oslo
Postcode : 0277
Country subdivision (NUTS) : Oslo ( NO081 )
Country : Norway
Contact point : eSender
Telephone : +47 21018800
Fax : +47 21018801
Internet address : http://mercell.com/
Roles of this organisation :
TED eSender

Notice information

Notice identifier/version : 42c44696-97f5-4d1d-bdac-e97d8916bbc0 - 01
Form type : Direct award preannouncement
Notice type : Voluntary ex-ante transparency notice
Notice dispatch date : 15/07/2025 09:12 +00:00
Notice dispatch date (eSender) : 15/07/2025 09:12 +00:00
Languages in which this notice is officially available : English
Notice publication number : 00465669-2025
OJ S issue number : 134/2025
Publication date : 16/07/2025