Item 9 - Payment Processing Services - Notification of Revised Liabilities
Renfrewshire Council · 12 September 2024
Back to Finance, Resources and Customer Services Policy Board — 12 September 2024 and its agenda
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___________________________________________________________________ To: Finance, Resources and Customer Services Policy Board On: 12 September 2024 ___________________________________________________________________ Report by: Director of Finance and Resources ___________________________________________________________________ Heading: Payment Processing Services (RC-CPU-23-236)– Notification of revised liabilities ___________________________________________________________________ 1. Summary 1.1 The purpose of this report is to seek approval from the Finance, Resources and Customer Services Policy Board to approve the revised limit of liabilities for this Contract. 1.2 The original contract for Payment Processing Services RC-CPU-23-236 was approved by the Finance, Resources and Customer Services Policy Board meeting on 13 June 2024. 1.3 The reasons for the revised in the limit of liability are set out in section 3 of this report. __________________________________________________________________ 2. Recommendations It is recommended that the Finance, Resources and Customer Services Policy Board: 2.1 Approves the revised liability cap for the Payment Processing Services RC-CPU-23-236 Call-off Contract made under Crown Commercial
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Services G-Cloud 13 Framework Agreement RM 1557.13, Lot 2 as: follows: The approved cap of £5 million in the aggregate per annum on direct loss, destruction, corruption, degradation or damage to any Council Data has been revised and will now not exceed the greater of £64,000 or 100% of the Charges payable by the Buyer per annum (the Council) to the Supplier (Access Paysuite Ltd) during the Call-Off Contract Term. The approved cap of 150% of the annual charges for all other Defaults has been revised and will now not exceed the greater of £64,000 or 100% of the Charges payable by the Buyer per annum (the Council) to the Supplier (Access Paysuite Ltd) during the Call-Off Contract Term. 2.2 Approves the new liability cap on defaults by either party resulting in direct loss to the property, including technical infrastructure, assets or equipment, but excluding any loss or damage to Buyer Data (Council Data) of the other party will not exceed £200,000 per year. 3. Background 3.1 The Council requires a payment processing service to allow their customer various ways to make payments for Council Tax, Rates, Rents, Overpayments and Sundry Debtor bills. The Council offers PayPoint, Payzone and Post Office, ensuring that customers have a choice of options and accessibility to payment services which meets the Council’s needs, whilst ensuring payment services are accessible within local communities. 3.2 The Council carried out a procurement exercise conducted in accordance with the Crown Commercial Services G-Cloud 13 Framework Agreement RM1557.13 Framework Schedule 5: Award Procedure and the RM1557.13 G-Cloud 13 (lots 1,2 and 3) Buyer Guide (Buyer Guide) and Renfrewshire Council’s Standing Orders Relating to Contracts for an above Threshold Services contract. Following evaluation, it was identified that Access Paysuite Ltd would provide best value to the Council and should progress to stage 5 award.
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3.3 The Contract is formed by using the Framework Award, Call-Off Contract (Order Form) and Call-Off Terms. As part of the Order Form, the Council completes the requirements and agrees the cap in liabilities. In order to identify the cap in liabilities value, the Service identified the risks relating to the Contract and took advice from other relevant Council Services and the Councils Risk Manager. This was also discussed with the Head of Finance and Procurement in accordance with Standing Order Relating to Contract Order 35. It was proposed that the liability cap for the data that is held should match the professional indemnity insurance value of £5 million (to note: the Framework Agreement insurances were reviewed as part of the Order Form process and the Council Risk Manager requested for the professional indemnity to be increased from £1 million to £5 million and Access Paysuite Ltd accepted this increase). The Service discussed the risks for any other defaults and this was agreed at 150% of the annual charges. The original liability cap levels were approved at the Finance, Resources and Customer Services Policy Board on 13 June 2024. 3.4 Following approval at the Finance, Resources and Customer Services Policy Board, the liabilities were then discussed with the recommended supplier, Access Paysuite Ltd, who advised that the cap in liabilities was considered excess for the contract requirements, the value of the contract and the payment processing services market. As Access Paysuite Ltd does not hold any personal or sensitive data, the proposal is now to reduce the level of liability cap from £5 million in the aggregate per annum on direct loss, destruction, corruption, degradation or damage to now not exceed the greater of £64,000 or 100% of the Charges payable by the Buyer per annum to the Supplier during the Call-Off Contract Term. This has been verified against the existing contract for payment processing services. 3.5 For any other default, the proposed liability cap has been revised from 150% of the annual charges to now not exceed the greater of £64,000 or 100 % of the annual charges, payable by the Buyer to the Supplier during the Call-Off Contract Term.. 3.6 Access Paysuite Ltd has also requested a liability cap on defaults by either party resulting in direct loss to the property (including technical infrastructure, assets or equipment, but excluding any loss or damage to Buyer Data) of the other party, and this introduces liability cap which will not exceed £200,000 per year. There is no Council property used in the operation of this service.
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3.7 In accordance with Standing Orders Relating to Contract clause 35, the proposed revisions to the liability were discussed and agreed with the Head of Finance and Procurement however as there is no delegation under the Scheme of Delegated functions for any Council Officer to approve any liability caps on behalf of the Council for Contracts with a value of above the GPA Threshold, this Report is submitted to request approval to revise the cap in liabilities for the Call-Off Contract for payment processing services as noted in recommendation 2.1 and 2.2 above Implications of the Report 1. Financial The revised liabilities are as follows: The liability cap in the aggregate per annum on direct loss, destruction, corruption, degradation or damage to any Council Data will not exceed £64,000 or 100 % of the Charges payable by the Buyer per annum to the Supplier during the Call-Off Contract Term (whichever is the greater). The liability cap of the annual charges for all other Defaults will not exceed the greater of £64,000 or 100 % of the Charges payable by the Buyer per annum to the Supplier during the Call- Off Contract Term (whichever is the greater). The liability cap defaults by either party resulting in direct loss to the property (including technical infrastructure, assets or equipment but excluding any loss or damage to Buyer Data) of the other Party will not exceed £200,000 per year. The contract award has a value of £64k per annum. 2. HR & Organisational Development No HR & Organisational development implications have arisen or are anticipated. 3. Community/Council Planning – Tackling inequality, ensuring opportunities for all - this contract will allow the residents of Renfrewshire to access a wide range of services to make payments at their convenience. Working together to improve outcomes - this contract will ensure that the residents of Renfrewshire can access different ways to make payments to the Council.
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4. Legal No legal issues are raised in this report. The Council is permitted to determine the individual liability caps and insurance requirements under G-Cloud 13 subject to the minimum levels specified in the Framework Agreement. 5. Property/Assets No property/assets implications have arisen or are anticipated. 6. Information Technology No information technology has arisen or are anticipated. No data is stored by the supplier. 7. Equality & Human Rights None arising directly from this report. 8. Health & Safety No health and safety implications have been identified or are anticipated. 9. Procurement This revised liability was discussed with Strategic Service Delivery Manager for Business Services and Head of Finance and Procurement, in accordance with Standing Order Relating to Contract clause 35, prior seeking this formal approval to modify liability cap levels. 10. Risk The following revised liability caps apply as part of the Call-Off Contract: The cap will not exceed £64,000 or 100 % of the Charges for direct loss, destruction, corruption, degradation or damage to any Council payable by the Buyer to the Supplier during the Call-Off Contract Term (whichever is the greater). The cap will not exceed 150% of the annual charges all other Defaults has been revised to the cap will not exceed the greater of £64,000 or 100 % of the Charges payable by the Buyer to the Supplier during the Call-Off Contract Term (whichever is the greater).
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The cap defaults by either party resulting in direct loss to the property (including technical infrastructure, assets or equipment but excluding any loss or damage to Buyer Data (Council Data) of the other party will not exceed £200,000 per year. 11. Privacy Impact None arising directly from this report. 12. Climate Risk None arising directly from this report. 13. Children’s Rights –None arising directly from this report. 14. Cosla Policy Position -None arising directly from this report. _________________________________________________________ List of Background Papers Contract Authorisation Report for Payment Processing Service (RC-CPU-23-236) 13 June 2024 ____________________________________________________ Author: Gillian Gordon, Senior Procurement Specialist, gillian.gordon@renfrewshire.gov.uk