Councillor David Chambers Date of Decision/Referral to O & S REPORT OF: STRATEGIC DIRECTOR (CORPORATE) SDC/08/37

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1 REPORT TO INDIVIDUAL CABINET MEMBER FOR FINANCE, LEGAL AND ICT 20 MAY 2008 Key Decision YES Forward Plan Ref No Corporate Priority ALL Cabinet Portfolio Holder : Councillor David Chambers Date of Decision/Referral to O & S 20 May 2008 Deadline for call-in 23 May 2008 Implementation Date (if no call-in) 27 May 2008 REPORT OF: STRATEGIC DIRECTOR (CORPORATE) SDC/08/37 WARDS AFFECTED: ALL SUBJECT: TENDERING SHORTLIST FOR EDRM & CRM SYSTEMS RECOMMENDATION(S) Cabinet Member is requested to: (a) Approve the attached shortlists of suppliers identified through a compliant prequalification process for tender of a contract to replace the CRM and procure a corporate EDRM system. (b) Approve entry into contract with the successful CRM and EDRM tenderer.

2 REASON FOR RECOMMENDATION(S) To: (a) Comply with EU procurement rules (b) Comply with the Council s Financial and Contract Procedure Rules (c) Ensure that there is a competent identified supplier/s appointed to supply the services required HIGHLIGHTED RISK Risk of failing to comply with The Council s Financial and Contract Procedure Rules Risk of failing to comply with the EU Procurement Rules Failure to formally tender the contract may result in the Council entering into an agreement on uncompetitive terms and not achieving Best Value in our procurement exercises Risk to service delivery 1. INTRODUCTION 1.1 The Council s constitution and EU procurement regulations provide that goods & services over 139k should be tendered in the European Union The Council has embarked upon a major transformation programme, which include a number of technology related products. Two key products are a replacement Customer Relationship Management (CRM) system and a corporate Electronic Document & Record Management (EDRM) System. The Council has been through a robust pre-qualification (PQQ) process that has resulted in the two supplier lists below. These lists represent a range of solution opportunities and some provide the possibility of collaboration in a combined CRM and EDRM solution. Each contract will run for a period of 5 years with up to a 2 years extension if appropriate. 1.4 A detailed contract and contract specification for the CRM and EDRM systems has been prepared. The opportunity to meet that specification has been advertised and a number of potential tenderers have applied to be considered for the work. These expressions of interest resulted in the return of 25 PQQ s for the EDRM system and 24 for the CRM system, which have been assessed for consideration on a restricted list of tenderers. Those returning a PQQ have been assessed against their responses to the PQQ, their company finances, size and experience. 1.5 This report seeks approval of a restricted list of contractors who it is proposed to Invite to tender for the contracts and subsequent authority to enter into two contracts (one for EDRM and the other for CRM) with the successful company or companies.

3 2. CORPORATE OBJECTIVES AND THE COMMUNITY PLAN 2.1 This proposal contributes to the Aim of Improving the Council, and specifically to the top Priority of improving performance of our services and ensuring they provide Value for Money. 3. BACKGROUND AND ISSUES 3.1 As the value of the procurement of each of these systems will exceed the relevant EU threshold, both Contracts has been advertised in the Official Journal of the European Union (OJEU) as is required by legislation. 3.2 The Restricted Procedure is being used where the Invitation to Tender is to be limited to Companies who reply to a public notice advertising the Contract, and this approach has been applied to this contract. 3.3 Contract advert notices have been placed in the local press, together with contract notices on the Council s Tendering website (SCMS) detailing the proposed contract. The contract notice informed companies that they needed to register their initial interest in the contract and return their completed Pre-Qualification Questionnaire (PQQ) by the relevant closing dates. 3.4 The PQQ s returned by interested suppliers have been assessed for their financial stability, ability to deliver two such key systems (size and capacity), experience of supply of similar products to other local authorities and completelness of the returned PQQ. As a consequence of that procedure the following companies are recommended for inclusion within a restricted list for the tender (11 for EDRM and 12 for CRM): EDRM Civica UK Ltd Serengeti Systems Ltd IDOX plc Morse/Diagonal Solutions Anite Public Sector Ltd EMV Computer Software (UK) Ltd Easy Software Hedra plc Northgate Information Solutions Bull Information Systems GoPro/Real Solutions CRM Civica UK Ltd Ash Information Systems APD Communications Morse/Diagonal Solutions Anite Public Sector Ltd Oracle Corp Capita Business Sevices Ltd Hedra plc Northgate Information Solutions Belfast City Council GoPro/Real Solutions Lagan Technologies Limited The six indicated in bold italics offer the opportunity for a combined approach to deliver of both systems. 4. CONSULTATION 4.1 Consultation regarding the requirements for the services is ongoing with the Stakeholders.

4 5. ASSESSMENT 5.1 A contract is required to ensure that the Council complies with it s Contract Procedure Rules and also that it has a supplier/s it can rely upon to supply these systems and allow the Council to move forward in the delivery of efficient and effective services. 5.2 A detailed invitiation to tender and specification has been prepared with the intention of ensuring that the contract will deliver all the functionality we require as well as best value. 5.3 A comprehensive quality based assessment has been carried out on the potential suppliers by the Procurement Unit. Companies considered to meet the assessment criteria were also subject to a financial assessment carried out by the Council s Chief Accountant. Finally, the Project Manager for both systems has assessed the ability to deliver and previous experience based on the PQQ returns. 6. IMPLICATIONS 6.1 Policy No direct implications, though changes in working practices may have policy implications later in the projects. 6.2 Financial The anticipated expenditure for the corporate EDRM System is likely to be 500k over the 5-years of the contract. The anticipated expenditure for the CRM System is likely to be 280k over the 5-years of this contract. 6.3 Legal The tender process complies with the Council s Financial and Contract Procedure Rules. Officers within Legal Services have prepared relevant contract notices, pre-qualification questionnaires and tender specification documents. This report is part of that process. 6.4 Other There are no other implications arising from this report. Ian Floyd Strategic Director (Corporate) Author: Paul Hill, Service Transformation Manager Telephone No: Fax No: address: paul.hill@scarborough.gov.uk Background Papers: None

5 Risk Matrix Appendix A Issue/Risk Failure to comply with the Council s Financial and Contract Procedure Rules. Failure to tender the contract may result in the Council entering into a contract on uncompetitive terms. Failure to procure these key transformational systems might result in an inability to work smarter. Consequences if allowed to happen There could be a challenge, which may delay the implementation of the contract. The revenue expenditure could be outside the budget framework. Other key transformational projects might not be realised, e.g. mobile/flexible working, working smarter to mitigate effects of efficiency reviews, etc. Likeli-hood Impact Mitigation Mitigated Likelihood Not Likely Low Procurement Services Very Low has been consulted and involved in the preparation and publication of the Contact notice to comply with the Councils constitution. Not Likely Minor The contract is being Not Likely tendered and so competitive terms should be maintained. Likely Major These systems provide the opportunity to change the way we work and reduce any effect on service quality brought about by efficiency savings Not Likely Mitigated Impact Minor Low Monor

6 Issue/Risk The actual cost following the tender exercise is greater than the estimate ( 250,000 for EDRM and 140 CRM) Consequences if allowed to happen Not able to fully implement the systems. Likeli-hood Impact Mitigation Mitigated Likelihood Not Likely Medium The budget estimate is Not Likely prudent and a contingency exists in IEG monies put aside for EDRM. Mitigated Impact Low Likelihood: Impact: Likelihood: Impact: Very Low Low Very Low Low Not Likely Minor Not Likely Minor Likely Medium Likely Medium Very Likely Major Very Likely Major