Contract Authorisation Report for Housing Management System (RC-CPU-24-008)
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: The Director of Finance and Resources and the Director of Environment, Housing and Infrastructure ___________________________________________________________________ Heading: Contract Authorisation Report for Housing Management System (RC-CPU-24-008) ___________________________________________________________________ 1. Summary 1.1 The purpose of this paper is to seek the approval of the Finance, Resources and Customer Services Policy Board to award a Contract for a Housing Management System (RC-CPU-24-008). 1.2 The procurement exercise was conducted in accordance with the Call Off Contract requirements under Lot 3: Housing, Environmental and Planning Solutions (“Lot 3”) of the Crown Commercial Services Vertical Application Solution Framework Agreement reference RM6259 (“the Framework”) and Renfrewshire Council’s Standing Orders Relating to Contracts. 1.3 A Contract Strategy was approved by the Corporate Procurement Manager on 23 April 2024, the Head of Housing Services on 25 April 2024 and the Head of Digital, Transformation & Customer Services on 26 April 2024. ___________________________________________________________________ 2. Recommendations 2.1 It is recommended that the Finance, Resources and Customer Service Policy Board:
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2.1.1 Authorises the Head of Corporate Governance to award the Call-Off Contract for a Housing Management System under the Option A Cloud Hosted solution to NEC Software Solutions UK Limited following a further competition under Lot 3: Housing, Environmental and Planning Solutions of the Crown Commercial Services Vertical Application Solution Framework Agreement reference RM6259. 2.1.2 Authorises the Call-Off Contract period of 5 years with options to extend for up to a further 60-month period in total at the sole discretion of the Council. It is envisaged that the Call-Off Start Date will be 21 October 2024 however the actual Call- Off Start Date will be confirmed in the Order Form. The contract is to be awarded in accordance with the Framework’s Call-Off Award Procedure. 2.1.3 Authorises the maximum approved Call-Off Contract value of £1,976,332 excluding VAT for the full Call-Off Contract period, including any extensions (10 years in total). This authorised value includes the £1,796,665 Tenderer Total Cost plus a 10% contingency for annual inflationary increases, additional professional services and other unforeseen costs. 2.1.4 Authorises the aggregate liability cap in accordance with the Framework Agreement Core Terms, which for this Call-Off Contract will not exceed the greater of £5 million or 150% of the Estimated Yearly Charges. _________________________________________________________ 3. Background 3.1 The Council requires a suitably experienced Supplier to provide and install a Housing Management software system for use by the Council to replace the Council’s current Housing Management systems. The core functionalities this Housing Management software system shall provide are asset management, repairs and maintenance, mobile working, rents and tenancy management, housing allocations, homelessness, and housing support functions, plus a full reporting suite with customisable reporting. 3.2 The new Housing Management System will replace a number of software systems used by the Council to support the delivery of housing landlord services, most notably the current main Housing Management System “Open Housing Management Systems” (“OHMS”). The provider of OHMS, NEC Software Solutions UK Limited, has advised that the system is approaching end-of-life and will
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no longer be supported from 31 March 2026. The Council endeavours to have the new Housing Management System live before this date. 3.3 A review of the procurement options identified that the Framework could be utilised. The procurement exercise for this Contract was conducted in accordance with the Framework Call-Off Award Procedure as a further competition under Lot 3 of the Framework and in accordance with the procedures for use of a third-party framework under the Council’s Standing Orders Relating to Contracts. 3.4 The further competition documentation was issued to all 29 Suppliers on Lot 3 of the Framework via the Public Contracts Scotland – Tender portal on 26 April 2024 with the submission deadline of 12 noon on 6 June 2024. Two responses were received in response to this further competition. 3.5 The supplier selection requirements contained in the SPD were already met at the Framework Award stage. 3.7 Tenderers had the option to submit tender responses for Option A – Cloud Solution Hosted and / or Option B – On Premise, and each Tenderer submitted responses for both options. The Council reserved the right to evaluate both options then determine which solution offers best value to the Council. 3.6 All tender submissions received were evaluated against the further competition Award Criteria of 70% Quality and 30% Price. 3.7 The scores relative to the Award Criteria for the tender responses for Option A and Option B are noted below: Option A: Cloud Hosted Quality Score (70%) Price Score (30%) Total Score (100%) Tenderers Name NEC Software Solutions UK Limited 59.05% 28.84% 87.89% Capita Business Services Ltd 57.80% 30.00% 87.80% Option B: On Premise Quality Score (70%) Price Score (30%) Total Score (100%) Tenderers Name NEC Software Solutions UK Limited 55.30% 30.00% 85.30% Capita Business Services Ltd 54.30% 22.79% 77.09%
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3.7 A desktop analysis was conducted to determine which solution out of the top ranked Tenderer for Options A and Option B would offer the Council best value. Taking into account the scope of the options, alignment with the Council’s Digital Strategy and commercial considerations it was determined that an Option A - Cloud Hosted solution would offer the Council best value. 3.8 It is recommended that the Call-Off Contract is awarded to NEC Software Solutions UK Limited who, based on evaluation for their offer under Option A – Cloud Hosted, have provided the most economically advantageous tender. The Contract will be formed in accordance with the Framework’s Call-Off Award Procedure. 3.9 The cost for this Call-Off Contract will be funded by the Housing Revenue Account (HRA) budget. 3.10 Community benefits were requested as part of the Further Competition Procedure and NEC Software Solutions UK Limited have committed to deliver the following community benefits as part of this Contract: Community Benefit Number of People/Activities Financial Support for a Social Enterprise within Renfrewshire 7 ___________________________________________________________________ Implications of the Report 1. Financial - the maximum approved Call-Off Contract value is £1,976,332 excluding VAT, including any extensions (10 years in total) and includes one-off implementation costs of £513,032, and a 10% contingency for annual inflationary increases, additional professional services, and other unforeseen costs. The anticipated Call-Off Start Date is 21 October 2024 and the cost will be met from the Housing Revenue Account budget. 2. HR & Organisational Development – staffing resource will be required for the implementation of the new system and will be applied in line with Council policy and procedures. 3. Community/Council Planning – Working together to improve outcomes – this Contract will provide the Council with a robust Housing Management System with all the functionality it requires to ensure the effective management of the Council’s housing stock.
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4. Legal - The procurement for this Call-Off Contract was carried out in accordance with the requirements of Lot 3 of the Framework and the Council’s Standing Orders Relating to Contracts. The Supplier Terms submitted as part of their application to the Framework also form part of the Call-Off Contract. 5. Property/Assets - This Contract will provide the Council with a robust Housing Management System with all the functionality it requires to ensure the effective management of the Council’s housing stock. 6. Information Technology - This Contract will provide the necessary software for a Housing Management System. The implementation of this software will require support from ICT staff. 7. Equality & Human Rights - The recommendations contained within this report have been assessed in relation to their impact on equalities and human rights. No negative impacts on equality groups or potential for infringement of individuals’ human rights have been identified arising from the recommendations contained in the report. 8. Health & Safety - No Health & Safety implications are anticipated. 9. Procurement – The procurement exercise was conducted in accordance with the Call- Off Award Procedure under Lot 3: Housing, Environmental and Planning Solutions of the Crown Commercial Services Vertical Application Solution Framework Agreement RM625 and Renfrewshire Council’s Standing Orders Relating to Contracts. 10. Risk - The insurance cover held by NEC Software Solutions UK Limited was assessed as part of their appointment on to the Framework. The aggregate liability cap in accordance with the Framework Agreement Core Terms for this Call-Off Contract will not exceed the greater of £5 million or 150% of the Estimated Yearly Charges. 11. Privacy Impact – A Data Processing Impact Assessment was completed by the Service and NEC Software Solutions UK Limited will be required to confirm and agree to the Data Protection requirements as noted within the Order form and relevant schedule. 12. Climate Risk – The level of impact associated with this Contract has been assessed using the Scottish Government Sustainability Test and is considered to be low risk with limited climate change implications noted as part of this Contract.
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13. Children’s Rights – none arising directly from this report. 14. Cosla Policy Position – No Cosla policy position implications have arisen or are anticipated. _______________________________________________________ List of Background Papers (a) None ___________________________________________________________________ Author: Rachel Davison, Digital Category Manager, rachel.davison@renfrewshire.gov.uk