Officer Delegated Decision Report - Procurement

Transcription

1 G atew a y T h r ee Officer Delegated Decision Report - Procurement Decision report for contract awards valued at 100,000 and greater and all waivers valued at 25,000 and greater ICT Virtual Desktop (Citrix) Contract Register Number TBC. Wards All Report authorised by: Divisional Director : Ed Garcez Report Prepared and Submitted by: Paul Wickens Lead officer s name title, address and phone number: Paul Wickens, Service Support Manager, Ivor House, 1Acre Lane London SW2 5BF Is this report for a request to recommend approval for a waiver to procurement rules? Yes No Procurement board: Procurement Board 2 13 December 2011 Gateway 2 date: 29 November 2011 Department: Finance and Resources Business unit: Business unit code: 1403 Name, phone and mobile numbers of report author: Paul Wickens, , Name, phone and mobile numbers of presenter: Paul Wickens, , Executive Summary The council s desktop software is end of life and increasingly incompatible with modern hardware. The project has considered a number of options to upgrade the software, including the use of open source products and adopting a new PC standard build as part of the existing PC refresh model. The council s existing desktop hardware model is expensive when compared to market alternatives that evolved in recent times as it is based on a one size fits all assumption. A more flexible hardware solution is required to support the Office Accommodation Strategy and cost-effectively give staff the appropriate tools for their job. Also, the cooperative Council introduces a need for users that are not directly employed by the Council to access Authority systems securely, remotely, easily and at low cost. Evaluation has shown that the cooperative ambition and Council business needs can be enabled by allowing users to access Authority systems securely via Citrix technology which is device independent. 13 December of 9

2 Summary of Financial Implications Funding for this work was approved by Council in February 2011 in the Revenue and Capital Budget report. Capital and Revenue funding has been allocated to across a number of different projects to enable and implement improved infrastructure, a replacement solution and productivity software suite. This work is funded and the costs for this work are estimated to be: - Software licensing and future product updates 350,000 (capital) On-going support for 3 years 120,000 (revenue) It is of note that Citrix are currently offering a trade in option until 31/12/2011 on upgrading old licenses on a 2 new for each 1 existing basis. Lambeth currently own 706 licenses so if an order can be raised before this date it represents a saving of approximately 90,000. This scheme is open to all organisations worldwide, further supporting documents relating to this opportunity are listed in the additional information section. Deemed Essential This expenditure is deemed essential under the Core Principles of Risk Mitigation and Financial Management as the increasing urgency around the Office Accommodation Strategy and the greater need to increase flexible, scalable solutions enabling remote working. Citrix as a technology allows you to run applications you have at work from anywhere in the world or on your local area network (LAN). Recommendations 1. To agree that SCC is awarded the contract for provision of Citrix software to allow usage of user/device connections and on-going support/maintenance (warranty) for 3 years within the GPS (Government Procurement Service) Commoditised IT Hardware and Software framework. 2. Provision for SCC to supply Citrix software and services for the next 12 months at an agreed fixed margin. 3. Total combined contract value of points 1 and 2 above up to 470,000 and a term of 3 years starting on 30 December Reason for Exemption from Disclosure This report is Part 1 of a 2 part report. Part 2 is exempt from disclosure by virtue of the Local Government Act 1972 which states that information relating to the financial or business affairs of a particular person (including the authority holding that information) may be treated as exempt from publication. The reasons for confidentiality are; pricing and benchmarking information is included in Part 2 all of which were supplied as Commercial in Confidence. Declarations of Interest (or exemptions granted): Yes None Consultation Name of person consulted Internal Department or Organisation Date sent Date response received 13 December of 9 Report section reference Mike Suarez Finance & Resources 13/12/11 19/12/11 All Frank Higgins Finance & Resources 13/12/11 17/12/11 7 Tim Harlock Finance & Resources 13/12/11 16/12/11 7 Michael O Hora Legal Team 13/12/11 14/12/11 8

3 Dave Burn Governance and Democracy 13/12/ /11 All Ed Garcez 13/12/11 13/12/11 All Obtain clearance from one of the below: Cllr Paul McGlone Departmental Cabinet Member 13/12/11 15/12/11 All Key Decision Is this a Key Decision ( 500k+), a Non-Key Decision or For Information? If a Key Decision ( 500k+), enter the date it was first entered onto the Forward Plan: Key Decision For Information Non-Key Decision Background Documents & Appendices 1.0 Context The Virtual Desktop project has been developed as a project within the existing Desktop 2012 programme and this procurement addresses the opportunity provided by its genesis. 1.1 The Cooperative Council presents a series of new technology challenges: the context is an increasing focus on sharing data and information and therefore reconsideration of security requirements brought about by this new way of working with the wider community and stakeholders. To support this, ICT systems need to be easier to access for council staff and other service providers, more flexible, and capable of supporting shared use and data access securely. The Desktop 2012 programme being addresses some fundamental methods of delivering key services, such as and the wider desktop estate. As part of this the original Citrix farm has been renewed and the original software upgraded. Bringing together this technical advancement, the increasing urgency around the Office Accommodation Strategy and the greater need to increase flexible, scalable solutions enabling remote working, completed an assessment of this Citrix technology opportunity and presented this to SLB as part of the Strategic Technology paper on 25 th October 2011 and has achieved approval at the Gateway 2 Procurement Board on 29 November The financing for this work has already been approved in the Revenue and Capital Budget Report of February Citrix as a technology allows you to run applications you have at work from anywhere in the world or on your local area network (LAN). It is possible to have real time access to run your applications as fast as if you are in the office. This product allows multiple users to run multiple applications on the Citrix Server at the same time from virtually any personal computer or other suitable device that can access the World Wide Web. 1.3 The following opportunities were outlined in the SLB paper and endorsed by SLB. Stratification and flexible working, liberating users to work anywhere anytime using any device (separating the delivery of council systems from the choice of device), easily and securely (including allowing the use of personal devices) Less software, only essential applications will be migrated to the new environment and will be decommissioned as part of the transition. Managed migration, allowing the continued use of existing assets as the organisation changes and planning the migration from non-strategic systems. 1.4 In addition to these several challenges were outlined in the paper and discussed at the same SLB meeting: Exceptions, Citrix will not suit all officers work; the proposed model will allow exceptions and innovative ways of working where needed Bandwidth, this will need to be extended to support the remote and flexible working ambitions 13 December of 9

4 Change management, this will involve extensive changes for our users and needs to be combined with the Office Accommodation Strategy and the introduction of widespread flexible and remote working. 1.5 The outcome of this procurement will be to deliver, via Citrix technology, a more people-centric, ondemand computing model that provides people the flexibility and freedom they want and IT the control it requires. 1.6 The licenses purchased are essentially a commodity purchase and once gained these licences are held in perpetuity. 2.0 Proposals & Reasons 2.1 has run a further competition through the GPS, Government Procurement Services (Formerly OGC Buying Solutions) framework to procure these services. The primary reasons for using an existing framework are: Reduced time to market - by using an existing framework procurement timescales will be reduced; Value for money - a GPS framework contract has been procured at a national level and therefore includes economies of scale that a single Local Authority can not match, resulting in lower cost for commodity services. Resource - there should be a significant reduction in management, legal, finance and SME resource time to procure a framework contract and therefore a corresponding reduction in cost; Risk Government Procurement Services has greater resources to procure a contract that meets all legal and contract management requirements; and this is a commoditised product offering very low risk. 2.2 The further competition used the GPS Commoditised IT Hardware and Software framework and carried out a further competition within Lot 3, Specialist Channel Partners for Software. 7 out of the 10 suppliers that are all approved to bid for work within this category and have met the framework conditions, 6 of these were valid bids. 2.3 The procurement is led by Lambeth, in conjunction with Corporate Procurement and is a major element to the delivery of the Desktop 2012 programme which is a key programme in the ICT service plan for 2011/12. The Director of ICT services is the Programme Sponsor and the Assistant Director of Projects Information and Infrastructure is the Programme Executive. 2.4 As we already had existing Citrix infrastructure, existing product knowledge and over 500 existing users then Citrix was selected by the project as the most logical and cost effective option in terms of technology choice. Citrix is also rated as the market leader for Desktop and Application Virtualisation by both Gartner and IDC suppliers responded to the invitation posted on the GPS portal, Insight Direct, Fujitsu Services, Phoenix Software, SBL (Softbox), SCC (Specialist Computer Centres), SoftCat and Equanet. All responses have then gone through clarification questions with Equanet the only supplier removed because they gave invalid responses on section 1 and 6 of the ITQ requirements table, despite being given the same opportunity as every other supplier to offer further clarification. Of the remaining 6 all have been assessed on price only with the initial cost of license purchases being one element, the cost of Support over a 3 year term and the cost of the margin being applied over the following 12 months. After all of these elements have been assessed the supplier with the lowest price which was the criteria set out in the Gateway 2 report the chosen supplier is SCC. Waiver 2.4 Not required. 13 December of 9

5 2.5 Cashable & Non-cashable Savings No Cashable Savings This contract is to provide licenses and support for Citrix moving forwards and usage of Citrix will be funded from existing revenue budgets. Non-cashable Savings If the procurement is fully completed before the end of 2011 then for each license we get an additional license free, this effectively gives us a 100% saving/volume discount, this equates to a value of 94, Volume Reductions 3.1 By contracting to support over a three year period rather than one year this leads to a further price reduction of 8,510 over that period. 4.0 Results of Scrutiny and Consultation Views 4.1 Report cleared. (Cllr Paul McGlone) 4.2 External views have been sought from a number of different groups including: - Brighton & Hove City Council London Borough of Camden London Borough of Brent Parliamentary ICT team 4.3 Internal views have been sought from a number of different groups including: - Ipad pilot users including Social Care staff, Senior Leadership team and Councillor s Desktop 2012 Programme Board which includes representatives from all departments ICT technical teams 4.4 The evaluation process consulted internally with: ICT - Director of, Assistant Director Information and Projects, Assistant Director Business Systems and Server Support Team Leader. Procurement - Procurement Manager Projects. 4.5 Following consultation with all of the above representatives it was decided to proceed with using Citrix as our Virtual Desktop technology choice. 5.0 Organisational Implications Risk Management 5.1 The project will take the normal Lambeth ICT approved measures to collate, monitor and address risks and maintain a risk log as a baseline and control. One of the main Risks for the project is that of not being able to take advantage of the potential time bound offer to upgrade existing Citrix licences at no cost as well as getting another new licence for free at the same time. 5.2 This procurement does not have a risk on the corporate risk register as the project are using a proven GPS framework and as such is deemed to be relatively low risk. 5.3 The key risk specific to this procurement are provided in the following table: ID Risk Likelihood Mitigating Action 84 Delay in procurement and not being able to take advantage of significant savings present until High Involvement of Lambeth procurement and GPS in the procurement approval route to help address and swiftly pass any issues as they arise. 13 December of 9

6 31/12/11 Equalities Impact Assessment 5.4 An initial screening equalities impact assessment for the Virtual Desktop (Citrix Licensing and support) has been undertaken with the following result: Policy relevance to equality Relevance identified Low/Mediu m/high Low needs a degree of rigor to confirm that it is in line with statutory duties but external challenge. Full assessment not required. Medium needs reasonably robust process with some degree of external challenge. Full assessment required. High needs very detailed and thorough process with significant external challenge. Full assessment required. Race Gender and transgend er Disability Age Sexuality Faith or belief Low Low Low Low Low Low Low Social and economic factors Further research/consultation to be done Full assessment to be done Others to be involved in the review and scrutiny process Yes No Yes No Department Leadership Team Corporate EIA Panel Community groups Other (please specify) Crime & Disorder Implications 5.5 There are no implications for Crime and Disorder for this project. Responsible Procurement Implications 5.6 Economic Sustainability Risks Value for Money: the project is utilising a national framework contract that has been competitively tendered, is subject to a rigorous audited benchmarking process and has been utilised by many other Public Sector bodies and as such provides approved value for money credentials. Ethical practices: GPS undertakes screening and management of approved suppliers to ensure compliance all ethical requirements. Legal compliance: the existing standard terms and conditions of the framework provide parties with all the requirements for legal compliance. Abuse of power: GPS undertakes benchmarking studies of the approved suppliers at a minimum of a monthly basis to ensure that value for money is delivered at all stages of the contract. If the supplier is found to have charged in excess of the benchmark costs then the supplier will refund the difference to the customer. Competitiveness: This framework already provides suppliers selected through an open competitive tender exercise that is an approved EU-compliant route to market. Fair dealing: the existing contractual terms and conditions presented by GPS address all requirements for fair dealing for all parties. 5.7 Environmental Sustainability Risks The impact of additional Citrix licences to the environment is taken seriously by this project. All products procured through this framework are considered for their environmental sustainability and their energy efficiency. Significant benefits of the virtualisation aspect of this project are that there will be both a reduction in the power consumption and heat output of the Lambeth data centre as well as 13 December of 9

7 enabling to sweat its existing desktop assets to their fullest before retiring them: this is due to the very nature of the Citrix system behaviour. The procurement should not require use of scarce natural resources No hardware is being sourced or procured here and thus there is no negative impact to the environment requiring recycling or disposal of such items. Staffing & Accommodation Implications 5.8 There will be no staffing or TUPE effects from this contract as this is an expansion to an existing service that the council is procuring that is currently not provided by any staff. Any Other Implications 5.9 As part of the implementation of this software other infrastructure elements will also need to be expanded and grown, such as server infrastructure and network bandwidth but these are covered by other existing ICT contracts. 6.0 Contract Management & Monitoring 6.1 The software manufacturer will provide reports for service review meetings including review of achievements against Service Level Agreements and provides product development updates. Quarterly service and contract monitoring meetings will be held attended by representatives from ICT and the software manufacturer. 7.0 Finance Comments 7.1 Funding for this work was approved by Council in February 2011 in the Revenue and Capital Budget report. Capital and Revenue funding has been allocated to across a number of different projects to enable and implement improved infrastructure, a replacement solution and productivity software suite. This work is funded and the costs for this work are estimated to be: - o Software licensing and future product updates 350,000 (capital) o On-going support for 3 years 120,000 (revenue) It is of note that Citrix are currently offering a trade in option until 31/12/2011 on upgrading old licenses on a 2 new for each 1 existing basis. Lambeth currently own 706 licenses so if an order can be raised before this date it represents a saving of approximately 90,000. This scheme is open to all organisations worldwide, further supporting documents relating to this opportunity are listed in the additional information section. For 11/12 the expected costs, of 159k on the licences themselves, and 8k revenue (total revenue cost over 36 months = 96k; so for 3 months remaining in 11/12 is 8k), are being forecast in the ICT budget monitor, which is forecasting spend to budget as at November There will be a need to purchase additional licences in future years as more users are switched to Citrix. For later years, there is the 800k capital budget in 11/12 that will be carried forward to 12/13 and could be partially utilised, and the revenue budget will be covered by the previously badged PC Refresh budget. Overall, the SCC tender is the best value for money due to the offer disclosed above. 8.0 Comments from the Director of Governance & Democracy 8.1 The Council has delegated the authority to award this contract to the Divisional Director and Divisional Director of Resources. Before exercising that authority, the approval of Procurement Board Two must be obtained. 8.2 Procuring contracts via a Government Procurement Service framework complies with the provisions of both the Council s Procurement Guide and the Public Contracts Regulations The contract 13 December of 9

8 must be operated and managed in accordance with the terms and conditions of the originating contract. 8.3 The Council s constitution requires all decisions involving 100,000 or more to be published in Officer s Decisions. 9.0 Timetable for Implementation 9.1 The table below shows the stages, milestones and deadlines for implementing the contract. Start the timetable from the date of the board meeting and go forward: Approvals # Item Description Date 1 Strategic Procurement Board 13 December Contract Award 21 December Contract start date 28 December First Contract Performance Review date 28 November Gateway Four due date 21 December 2012 I have seen this report and approve it for onward submission to the procurement board: Signature Date Ed Garcez Divisional Director I approve the above recommendations: Signature Peter Hesketh Chair of Procurement Board Date Delegated Authority I approve the above recommendations: Signature Ed Garcez Divisional Director Date Signature Frank Higgins Divisional Director Corporate Finance Date 13 December of 9

9 Scheme of Delegation Note: For total contract values within the thresholds listed below, the relevant signatories must sign this report. (For variations consider the total contract value including the variation amount.) Contract Award Over 10 million Executive Director of Finance and Resources More than 1 million up to and including 10 million Executive Director and Divisional Director of Resources More than 100,000 up to and including 1 million More than 50,000 up to and including 100,000 Waivers More than 500,000 and greater More than 25,000 up to and including 500,000 Divisional Director and Divisional Director of Resources Head of Service or Assistant Director Departmental Executive Director and Business Unit Manager Departmental Executive Director and Business Unit Manager 13 December of 9