Contract Tender for Library Management System

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1 Contract Tender for Library Management System AGENDA NO: Cabinet Date 4 th July 2012 Leader of the Council Key Decision Background Documents Location/Contact for inspection of Background Documents Main Consultees Cllr Mark Hawthorne No Procurement gateway form May 2012 Contact: Sue Laurence, Library Services Manager (Strategy) Tel: GCC ICT Service Swindon Borough Council Planned Dates Divisional Councillor Libraries & Information Senior Managers By end September 2012 Invite to tender By end December 2012 Award tender By end June 2013 new Library Management System launched (allow 6 months to migrate to the new supplier) Countywide Officer Nigel Riglar: Commissioning Director:

2 Purpose of Report To request Cabinet s approval to re-tender for the provision of the Library Management System (LMS). The LMS is the means by which library membership and loan transactions are managed and the library catalogue provided. We are seeking to enter a joint tender with Swindon Borough Council to obtain shared benefits and reduced costs. However, a separate contract arrangement will be made between each authority and the successful supplier. Recommendations That Cabinet authorises Libraries & Information to undertake a Further Competition Award within the Government Procurement Service Framework RM 865/5, with Swindon Borough Council, in order to select a Library Management System supplier for a 5 year contract commencing 2013, with the option of 2 additional year-long extensions. Resource Implications Expenditure will be within allocated resources By working with Swindon we aim to establish new economies of scale in order to maximise the value of integrated IT platforms and open up opportunities for potential sharing of stock in the future. For Gloucestershire Libraries & Information the estimated maximum value of the contract is approximately 420,000 over the proposed 7 years of the contract. This is based on quotes provided as part of pre-tender research. This represents a 33% minimum saving compared to the current supplier costs. The Government Procurement Service framework offers a simple and effective route to select a supplier that meets our requirements. The award criteria are: Fitness for Purpose including quality Delivery Total Lifecycle Costs These are outlined in the Framework but the percentage weightings are yet to be discussed and agreed with Swindon and the ICT Service but total lifecycle cost will be a key criteria in the selection.

3 MAIN REPORT CONTENTS Background: The Library Strategy, which was agreed by Cabinet in April 2012, sets out the vision and desired outcomes that we want to achieve. It states that Our vision is to support individuals and local communities to achieve their aspirations by creating a vibrant, welcoming library service that provides access to books, information and learning opportunities in a variety of ways and in partnership with others. The selection of the LMS contract is core to the delivery of the Library Strategy as it will ensure: Development of the virtual library to include expansion of self serve options and choice Efficient static core council library service Provision of stock issuing technology and People s Network booking for Community Libraries Fully enabled public sector mobile to issue items and provide people s network access Within the specification used to support the Further Competition Award we will ensure that the suppliers have to demonstrate their capacity to offer integrated IT solutions that will meet our requirements for community libraries and the new public sector mobile provision. In addition, the specification will set out our requirements for current and future virtual library provision and automated self serve features. We are selecting a supplier that can offer a hosted and managed service. This means the supplier will manage the system and also host the majority of system hardware. Our strategy for procurement and the specification for the supplier fits fully with the ICT strategy as we aim to benefit from: Value for money in contracts Reduced physical hardware via virtualisation Increased capacity for integration CRM, Transactional website, Disaster recovery (limited current disaster recovery), and we also aim to: Maintain security of networks and data Options: Other options have been considered: Libraries & Information enter into a tender process independently by using the Government Procurement Service Framework we are minimising procurement costs and time by taking advantage of a framework that has already gone through OJEU. Reviewed opportunities for joint procurement with all SW authorities (this was not possible because of terms of current Libraries West OJEU)

4 We had initial consortium meetings with Wiltshire and Swindon and this has evolved into the current proposed Swindon Partnership Option to incorporate contract within current ICT Service contract was not viable because of contract value and the scale and length of the current ICT contract. The option to procure with Swindon using the Government Procurement Service Framework represents the lowest risk, most efficient procurement method and should maximise the potential savings for us. Risk Assessment: In general the risks of the recommended procurement method are low. Risk Business failure of company awarded the contract Supplier fails to meet requirements for hosted and managed service The partnership with Swindon breaks down Mitigation Financial checks carried out as part of the Framework Termination on Financial Standing and Termination on Insolvency and Change of Control are all specified within the Framework Agreement The contract will be supported by a range of performance indicators and service levels that we will set out in Schedule C of the Call Off Contract. We will have regular partnership review meetings with Swindon We will establish clear terms within the partnership We will have a contract between Gloucestershire County Council and the supplier. Officer Advice There are considerable benefits to using the Government Procurement Service Framework RM 865/5 Reduction in time needed for the tender process as OJEU has been completed Includes the main suppliers who offer a hosted and managed service Call Off and Framework Agreement are already in place so reduced procurement and legal team involvement We recommend working cooperatively with Swindon Borough Council to undertake the competitive selection. This has the benefits of: Shared workload to define and develop the selection specification Shared workload to assess the tenders Shared workload to manage the selection process In addition, by working with Swindon we have the option to establish access for our users via a joint catalogue with the potential of attracting greater discount on the contract value.

5 Furthermore, by having a shared approach to the Library Management System procurement we can also then explore options for: joint membership explore the scope for shared services in the future sharing/exchanges of specialist stock collections, promotions. Officer advice is to use the Government Procurement Framework in partnership with Swindon Borough Council to achieve the best terms for the procurement of the Library Management System. Consultation Feedback: Internal discussion with the ICT Service The recommended procurement strategy meets the ICT service strategy. The ICT Budget currently funds the core subscription costs and Libraries & Information fund development costs. The management of the system is a Libraries function. Because of this relationship with ICT they have been fully involved. We continue to work closely with Swindon Borough Council in order to agree procurement proposals and specification. Performance Management/Follow-up: Monthly Management Information reports The contract will include specific and measurable targets which will be actively managed at annual meetings as well as quarterly meetings between individual authorities and supplier The procurement will be managed against a clear specification. The implementation phase will have clear milestones for implementation There are penalties for consistent failure by the service provider to meet performance requirements

6 Report Title Statutory Authority Relevant County Council policy Resource Implications Contract tender for Library Management System Gloucestershire County Council 1964 Libraries & Museums Act Library Strategy ICT Service Strategy As outlined in the report Sustainability checklist: Partnerships With Swindon Borough Council Decision Making and Involvement Economy and Employment Caring for people Legal and Procurement Built Environment Natural Environment including Ecology (Biodiversity) Education and Information Tackling Climate Change Equality Impact Assessment (EIA) Pre-agreed conditions and safeguards underpin all contracts placed under the Framework Pre-agreed conditions and safeguards underpin all contracts placed under the Framework Library provision supports access to information and informal learning Carbon Emissions Implications? Neutral Vulnerable to climate change? Has an EIA been completed? No Yes- see note below Library Strategy 2012 Equality & Community Impact Assessment The provider of the Library Management System will be required to comply with all aspects of equality and data protection and information security guidance. Human rights Implications Consultation Arrangements

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