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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