Wards Affected: All Wards ITEM 10 CABINET PROCUREMENT COMMITTEE 4 MARCH 2014 INIVTATION TO TENDER - DOCUMENT BACK SCANNING SERVICE (REF:CU2410) Authors: P Wheeler - Head of IT Strategic Development Tel: (01908) 254148 P Mellor - Assistant Director Public Access Tel: (01908) 254101 Executive Summary: This report is seeking approval to commence the tender process for a Document Back- Scanning Service for a contract that will be for 2 years, with the option to extend for a further 1 year. The tender is required to support the broader strategy relating to the Corporate Accommodation Programme Strategy (CAPS) and Information Governance. 1 Recommendation(s) 1.1 That the commencement of the tender process, using the Pro5 framework, Contract 390, for the procurement of a Document Back Scanning Service be approved. 1.2 That any recommendation to extend either of these contracts be bought back to this Committee for a decision in sufficient time to allow a new procurement exercise to take place if the Committee consider it more appropriate. 2 Background 2.1 The approved IT Strategy 2013 2017 identified the need to implement a regime of Information Governance in order to make effective use of data and comply with legislation. Part of the Information Governance framework is to support the Office rationalisation programme which seeks to create a more efficient use of office space, higher density of office desks and implement electronic document management. The procurement is needed in order to meet the corporate move to a paper-lite office environment using electronic online information and documents. 2.2 Savings identified within the Corporate Accommodation Programme (CAP) will be delivered by making more efficient use of office space and ways of working. The removal of filing cabinets and becoming a paper-lite organisation are fundamental to making the required space saving and supporting a higher density of workstations. 2.3 Putting manual files into an electronic searchable format will enable the Council to better comply with the statutory requirement for Information Governance and more effectively use data to provide services to the citizen, 2.4 A feasibility study (appendix 1) was undertaken to review the options and arrive at estimates and evaluate options 2.5 Based on analysis of what we believe to 75% of the total paper stored onsite, there are around 13 million images. While most of the records are A4 in size, there are a significant number of larger format documents, such as A0 plans, in some collections. Some documents will also require scanning in colour. CPC ITEM10 4 MARCH 2014 PAGE 1
2.6 Consultation. The draft specification will be developed in partnership with: ICT Portfolio, IT Strategic Development, IT Strategy Group, Facilities Management, MKSP Services, the Corporate IT board and service areas. Research and analysis has included discussions with the Buckinghamshire County Council and Central Bedfordshire Council s document management programmes. 2.7 Specification The procurement seeks to deliver the following service objectives: Support the Corporate Accommodation Strategy, by releasing office floor space, currently used by filing cabinets. Support the IT Strategy, by moving information and documents to an electronic format, accessed online from a PC. Support the improvement of Information Governance and compliance with legislation mainly Data Protection and Freedom of Information legislation. Support the increase in mobile and remote working due to electronic access to more files The Specification of requirements to support a paper-lite office can be summarised as: The provision of an off-site bulk scanning service, which will transfer paper files and documents into electronic form, which includes: Prepare documents for scanning. Scan documents and process with OCR software to created electronic searchable files and documents. Deliver electronic documents to MKC for storage on IT system. Dispose of paper documents in a secure and environmentally friendly way. Some documents will need to be retained and returned to MKC in original paper format for physical storage (Fraud, Legal, Adoption etc). Social Value- Information and documents will be accessed online, reducing the frequency and need to courier documents between remote sites. Reducing MKC s carbon emissions and impact on the environment. Secure destruction of paper files and documents will be carried out by the supplier in an environmentally friendly process. 2.8 Evaluation Criteria & Panel The MEAT evaluation of the tender includes the following tender specific quality requirements, which are listed below: Area Evaluation Area 1 Tender Price 70% Weighting (%) 2 Quality: Specification of Requirements. 20% 3 Capability: Demonstrate ability to deliver the service. 5% 4 Capability: Performance and Service Levels 5% The 70/30 split in favour of the price over quality is considered appropriate as the delivered product (electronic file/document) is fairly standard across most CPC ITEM10 4 MARCH 2014 PAGE 2
suppliers. MKC s volume of paper files is over 10 million images, so price per image is very significant in respect to the overall cost of the service. Tenders submitted will be evaluated by a panel comprising of MKC IT Officer, Facilities Manager, Mailroom Officers, MKSP IT technical Officers. Colleagues within Finance and Legal and Corporate Procurement will be engaged to support the tender process. 2.9 Contract Terms and Conditions The Council s standard Terms and Conditions for contract for Services will be used. Upon approval of this recommendation we will liaise with the legal department to have the Terms and Conditions issued as a formal contract which will then be sealed and stored in the deeds room. The Council s Constitution further requires that all contracts in excess of 100,000 are sealed as deeds with the legal department agreeing contract terms with the client department and making the arrangements for sending out final Terms & Conditions to Contractors and sealing and storage of the final contract in the deeds room. 2.10 Project Management: The service will be managed (monitored and controlled) by the CIMDAS Programme, within the ICT portfolio. The Council s Project Manager for the procurement is CIMDAS Programme Manager. The Council s Senior Client Officer for the procurement and management of the contract is the Head of IT Strategic Development. 3 Alternative Options The following options appraisal has been conducted: 3.1 Do Nothing: This will have an impact of the CAP as valuable office space will not be released to allow for reductions in accommodation space requirements. Filing cabinets full of paper documents will remain on-site within the council offices and office floor space will not be recovered. Files and documents will not be available online from a PC. 3.2 In House Back-scanning This option would require the purchase/lease of large specialist scanning equipment, suitable accommodation to house the devices, and sufficient office space to apply compliant processing standards required in order to meet legal admissibility. Due to the high volumes involved this would be additional equipment over and above that identified in the digital mailroom tender that is also seeking approval. The option would have the potential advantage of having local knowledge of the data being scanned and improve on the indexing of Data. 3.3 European Open (single stage) tender: There are a large number of suppliers in the market place, who are all able to provide the standard document scanning services we require. An open tender would therefore result in an excessive number of tenders. CPC ITEM10 4 MARCH 2014 PAGE 3
3.4 European Restricted (2 stages -shortlist and then tender). A restricted European tender process would allow for a pre-qualifying questionnaire (PQQ). However, this may not restrict the number of tenders as most if not all suppliers will be able to provide the required service. 3.5 Framework: (Preferred Option) Although a number of GPS frameworks were reviewed, the Pro 5 Framework, Contract 390 agreement, is specifically designed for document scanning services, which is exactly the service MKC requires. The agreement has 6 regional based companies who provide bulk scanning bureau services. This is considered sufficient to generate competition and best value/price, due to the terms of the framework, contract and standardisation of the services required. 4 Implications 4.1 Policy This procurement seeks to support the Corporate Accommodation Strategy, IT Strategy 2013-2015 and the Carbon Management Strategy. 4.2 Resources and Risk The estimated costs of this contract are anticipated to be within the resources set aside for back scanning included as part of the CAP programme. Funding of 700k from New Homes Bonus has been allocated within the wider 4.6m CAP programme for this contract. This has been approved as part of the 2014/15 budget process. The Risk Assessment for this contract is available if requested or directly via Members access to GRACE. In summary: The key opportunity secured by this contract is to: Enable flexible and mobile working practices, moving MKC towards a paperlite office environment. Recover office floor space, which is currently occupied by filing cabinets to allow an increase the workspace density and reduce accommodation requirements Reduce the future storage costs of long term retention archive files and documents, as less filing will enter storage. It is assessed that the delivery of this contract provides a medium likelihood that will secure the opportunities defined, providing MKC with a significant positive Impact. CPC ITEM10 4 MARCH 2014 PAGE 4
The key THREATS for this contract have been assessed as: Risk Like liho od Mitigation Not enough suppliers will M Advise potential suppliers of tender respond to the tender to ensure enough interest to achieve best value for MKC Pricing structure may be complex due to the variety of document types and document collections. Price maybe higher than expected and at the upper end of market research estimates. M M Provide document profile information in specification. Simplify files structures where possible. Keep spec of delivered product (electronic file) as simple as possible. Impact after mitigation L L L The governance measures set out in 2.9 above provide a basis to conclude that these threats, properly managed represent a low likelihood with a high Impact. Resources & Risk Implications Should be Y or N dependant on if you have covered this within the report N Capital Y Revenue Y Accommodation Y IT Y Medium Term Plan Y Asset Management 4.3 Carbon and Energy Management No additional green issues will be addressed by this procurement as paper is already recycled and disposed of in a secure, environmentally friendly way. Disposal of paper documents will be performed in a secure and environmentally friendly method complying with DIN level 3, ISO and British Standards or equivalent. 4.4 Legal: The Council has an obligation to process any personal Data in accordance with the principles of the Data Protection Act 1998. The Council also has an obligation to provide information requested under the Freedom of Information Act 2000 and under the Environmental Information Regulations 2004. This procurement will help the Council in complying with the above duties by having readily accessible electronic information where possible. There is no mandatory statutory consultation required for this procurement. The proposed tender is for services with an estimated value over 700,000 for the proposed period of 3 years (including the option of a 1 year extension). This is above the EU threshold for service contracts and the procurement will come under the full regime of the EU procurement rules including advertisement in the Official Journal of European Union. The Council s Constitution requires that its Cabinet Procurement Committee approves commencement of tenders for all contracts with a value of over 100,000 and also that such contracts are advertised via the Council s system INTEND; and in the Official Journal of European Union where the EU threshold is met. CPC ITEM10 4 MARCH 2014 PAGE 5
The proposed price element of the tender is 60 % which is above the 40% that is required by the Council s constitution and the restricted procedure is to be followed. This report therefore seeks approval to commence tender in line with the Council s constitutional requirements. 4.5 Other Implications N Equalities/Diversity N Sustainability N Human Rights Y Y E-Government N Stakeholders N Crime and Disorder N Carbon and Energy Y Policy Annex: WR1406 Electronic Archiving Feasibility Study Report v1.0 CPC ITEM10 4 MARCH 2014 PAGE 6