Procurement of IT software and support for housingmoves service

Transcription

1 REQUEST FOR DIRECTOR DECISION DD447 Title: Procurement of IT software and support for housingmoves service Executive Summary: Housingmoves will transfer to the GLA on 1 st April The efficient running of the service relies on an IT system, iswap, which matches vacant Seaside and Country Homes (SCH) properties with SCH applicants. It is proposed that the GLA enter into interim contracts with Strategic Risk Management Ltd. (SRM), the supplier of iswap, in order that the service can continue to operate while it is reviewed and a new or improved IT solution is specified. Decision: In line with the delegated authority granted to you in MD763, permission is sought to purchase a five-user iswap license (from SRM) for full usage of Seaside and Country Homes (SCH) module - 1,500 per month for twelve months; and, to purchase ½ day on-site per week support for iswap (from SRM) relating to the SCH module - 1,000 per month for six months; and for an exemption from the requirement of section 3.8 of the GLA s Contracts and Funding Code to seek three or more competitive quotations/call-off the services from an accessible framework. The total value of the contracts is 24,000. AUTHORISING DIRECTOR/HEAD OF UNIT I have reviewed the request and am satisfied it is correct and consistent with the Mayor s plans and priorities. It has my approval. Name Lyn Garner Position Executive Director Development and Environment Signature Date 1

2 PART I - NON-CONFIDENTIAL FACTS AND ADVICE Decision required supporting report 1. Introduction and background 1.1 MD763 authorised the transfer of the housingmoves service from the Department for Communities and Local Government (DCLG) to the GLA. This will take place on 1 April To facilitate the transfer, MD763 also authorised the Executive Director of Development and Environment with the power to approve all necessary documentation (and sign such documentation on behalf of the GLA) and actions for, and details of the completion of the funding arrangements, transfer of the service and ongoing provision operation of the services including (without limitation) the approval of payments where such decisions would ordinarily fall outside her powers under the GLA s Scheme of Delegation. 1.2 Since 2008, the housingmoves service has been operated using a bespoke software application, iswap, which is owned and supported by Strategic Risk Management Ltd (SRM). This contract is due to be terminated on 31 March The GLA intends to review the housingmoves service during 2011/12. This will include a review of its operational plan and ICT/technology requirements. However, in the interim it is crucial that the service is maintained and can continue delivering benefits for London. Commissioning a new ICT solution now, before a review has taken place and with just two weeks until the formal transfer, would not be possible or desirable. For this reason, an exemption from section 3.8 of the GLA s Contracts and Funding Code is sought on grounds of compatibility with an existing service. 1.4 SRM was secured by DCLG as the provider of ICT software and technology in SRM have now provided the systems to underpin the housingmoves service for over three years and consequently have unparalleled experience and expertise in the requirements of housingmoves, the service and its ICT systems. Realistically therefore, there are no alternative providers available at present and if a competitive exercise were to be conducted it is highly unlikely that another provider would score more highly than SRM. As a result, officers are of the opinion that to award contracts to SRM affords compatibility with an exiting service, and SRM are best placed to ensure the service remains operational during its move to GLA and its 2011/12 service review. 1.5 Following a successful negotiation with SRM, GLA officers are of the opinion that SRM s proposals for iswap licenses and support service are of a high quality and, through significant cost savings agreed with SRM, offer the GLA excellent value for money. It is therefore proposed that the GLA enter into two contracts with SRM, according to the proposals in appendix 1. These are a five-user iswap license for full usage of Seaside and Country Homes module - 1,500 per month for a minimum of twelve months; and ½ day on-site per week support for iswap relating to the Seaside and Country Homes module - 1,000 per month for minimum of six months. 1.6 During this time GLA officers will undertake work to ascertain the most appropriate ICT solution for housingmoves for 2012/13 and beyond. 2. Issues for consideration a) Links to strategies and Strategic Plan The Mayor s London Housing Strategy contains the following relevant policies: 2

3 Policy 1.3H: a proportion of new social rented homes will be made available on a pan-london basis in the next investment round. The Mayor is keen to improve out-of-london mobility opportunities for London s social tenants and is promoting another similar scheme, Homes out of London, which aims to reduce under-occupation in the capital. Along with Choice Based Mobility, another scheme previously delivered by housingmoves, there is considerable scope to combine these services. In addition, the Mayor is currently consulting on proposals to create a pan-london mobility scheme. The service would provide the ideal home for the new pan-london and out-of-london schemes, not least because it brings with it a successful brand and the expertise of the housingmoves team. Policy 1.3E: to halve severe overcrowding among social tenants by Policy 3.2B: to halve the number of homeless households in temporary accommodation by the end of By prioritising social tenants currently underoccupying their homes and so freeing up much-needed family sized homes in London, the service plays a key role in helping to achieve the Mayor s overcrowding and homelessness reduction targets. The Strategic Plan Delivery Form reference number that relates to this proposal is: 59SP10/11. Tasks associated with implementing these policies are included in the Housing Unit s workplan for 2010/11. b) Impact assessments and consultation The London Housing Strategy has been subject to a full integrated impact assessment and undergone two periods of statutory consultation, one with the London Assembly and functional bodies and one with the public. GLA and DCLG officers also undertook specific consultation during the options appraisal process for the transfer of housingmoves. A number of meetings were held with various organisations, including boroughs, London Councils, the National Housing Federation and the sub-regional housing partnerships. DCLG undertook an equalities impact assessment of the service in December 2009 (appendix 4). The London Assembly Business Management and Administration Committee have also been consulted on the creation of staffing posts for the transfer. c) Risk Not going ahead with this procurement would present a very high risk to the Mayor being able to effectively deliver the Seaside and Country Homes scheme. 3. Financial Comments 3.1 Approval is being sought to enter into interim contracts with Strategic Risk Management Ltd. (SRM), the supplier of iswap, in order to continue provision of the existing software to housingmoves (seeking an exemption to the Contracts and Funding Code for this purpose). 3.2 The estimated cost of these interim contracts is 24,000. Of this, 18,000 relates to the licence for 12 months and 6,000 relates to on-site support for 6 months. These costs relate wholly to 2011/12. 3

4 3.3 The cost of 24,000 will be funded from the Housing Unit s 400,000 DCLG income receivable in 2011/ All requisite budget adjustments will be made 3.5 Any changes to this proposal, including a continuation beyond the periods stated above, must be subject to further approval via the Authority s decision-making process. 4. Legal Comments 4.1 The forgoing sections of this report indicate that: the decisions requested of the Director fall within her powers (under the Authority s Scheme of Delegation) acting on behalf of the Authority, to do anything which is facilitative of or conducive or incidental to the promotion of social and economic development in Greater London; and in formulating the proposals in respect of which a decision is sought officers have complied with the Authority s related statutory duties to: (a) (b) (c) pay due regard to the principle that there should be equality of opportunity for all people; consider how the proposals will promote the improvement of health of persons, health inequalities betweens persons and to contribute towards the achievement of sustainable development in the United Kingdom; and consult with appropriate bodies. 4.2 Section 3.8 of the Authority s Contracts and Funding Code ( Code ) requires that contracts with values of this level be awarded following the seeking of at least three written quotations. However, section 5 of the Code also provides that an exemption from this requirement may be justified because it will afford continuity with an existing service. Officers have indicated in section 1.4 that this is the case. 4.3 There is a risk that another provider may argue that failure to undertake a competitive procurement process conflicts with EC Treaty principles of transparency, fairness and restricts cross border competition. However, this risk is mitigated (albeit not removed) on the basis that: (a) (b) the contract value does not exceed 156,442 and is not therefore, subject to mandatory EU tender requirements under the Public Contracts Regulations 2006; and officers have indicated that a review of the operational plan and ICT /technology requirements will be undertaken during the continuance of the proposed contracts (NB: it is recommended that a competitive procurement exercise for any further such services is conducted as part of this review). Therefore, the Director may approve the proposed award and exemption if satisfied with the content of this report. 4.4 Officers should liaise with TfL Legal and Procurement to ensure the SRM terms on which it is proposed the supplies and services are to be provided contain sufficient provisions to meet their needs and protect the Authority s interests, and acceptable contracts are put in place and executed by both SRM and the Authority before the commencement of the provision of the supplies and services. 4

5 5. Background/supporting papers MD763 Proposals for the SRM contract 5

6 Public access to information Information in this form is subject to the Freedom of Information Act 2000 (FOI Act) and other legislation. Information on this decision will be included in the Mayor s report and decision list. The form will be available publically from then. Any facts and advice that should not be made automatically available on request should not be included in Part 1 but instead on the separate Part 2 form. Deferment is only applicable where release before that date would compromise the implementation of the decision being approved. Is the publication of this approval to be deferred? NO If yes, for what reason: Until what date: Is there a part 2 form NO ORIGINATING OFFICER DECLARATION: Legal Advice: The Commercial Law and Projects team have commented on this proposal. Financial Advice: The Development and Environment finance team have commented on this proposal on behalf of the Assistant Director of GLA Finance. Tick to indicate approval ( ) Executive Director, Resources I have been consulted about the proposal and confirm that financial and legal advice have been taken into account in the preparation of this report. Signature Date 6