Item 08 - People and Technology Spend 2025-26
West Dunbartonshire Council · 5 February 2025
Back to Corporate Services Committee — 5 February 2025 and its agenda
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WEST DUNBARTONSHIRE COUNCIL Report by Chief Officer – People & Technology Corporate Services Committee: 5th February 2025 ___________________________________________________________________ Subject: People & Technology Spend 2025-26 1. Purpose 1.1 To provide the Committee with a detailed breakdown of the planned People & Technology (P&T) spend for both capital and revenue, covering new and existing contracts valued above £10,000 and to seek approval to procure and contract for the requisite goods and services. 2. Recommendations 2.1 The Committee is asked to: 2.1.1 note the revenue and capital spend detail included in this report. 2.1.2 note the projects to deliver this spend will be included in the 2025-26 People and Technology Delivery Plan currently in development and to be reported to a future meeting of this committee. 2.1.3 note, that where the contract award is less than £213,477 (VAT inclusive), authority is delegated to the Chief Officer – People and Technology in consultation with the Procurement Manager, to instruct the award of contracts for the planned revenue and capital spend detailed in this report to suppliers providing the most economically advantageous offer to the Council. 2.1.4 approve the procurement of and award by the Chief Officer People & Technology in consultation with the Chief Officer Regulatory and Regeneration, of all contracts valued at £213,477 (VAT inclusive) and above subject to the cost being within the approved budget and the tender being in line with normal tender parameters. 2.1.5 approve the revenue spend included in this report including approval to explore and secure multi-year contracts, contracts using framework agreements and/or contracts using dynamic purchasing systems beyond the term of approved budgets where efficiencies and savings can be achieved. 2.1.6 approve the projects specified in Section 3 of this report. ITEM 8
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3. Background Revenue 3.1 The Council, delegated to the People & Technology service, has an annual revenue spend of approximately £3,000,000 that covers a range of ICT goods and services, for example corporate and service applications, telephony lines and licences, network connectivity as well as security and application licences. Appendix 1 details estimated spend over £10,000 per managed system/technology. 3.2 The ICT team consults annually with the Corporate Procurement Unit to refine contract strategies. The breakdown includes: 3.2.1 Corporate business applications for the management of processes such as Finance, Housing, Performance and Purchasing. Although the annual maintenance budget for these systems is held by People & Technology (ICT section), the responsibility for the systems and associated contracting lies with the system owners within each service area. The system owners are responsible for granting system access and permissions, data management and security compliance, coordinating upgrades, verifying license and budget requirements, and ensuring the systems continue to meet service strategy and future requirements. ICT assist with licence verification and conduct annual exercises with service areas to verify application use, licence requirements and to identify if there are opportunities to reduce costs. 3.2.2 Infrastructure hardware commodity includes servers, switches, wireless access points, security infrastructure, cabling, telephony infrastructure, storage and multi-function printers and scanners. 3.2.3 Education curriculum software commodity is the responsibility of Education, Learning & Attainment with support from the ICT team. The software may be subject, sector or establishment based. 3.2.4 The end user hardware commodity includes all PCs, laptops, mobile phones, tablets, and Chromebooks across the Council. 3.2.5 The Corporate licenses commodity includes software products such as Microsoft and Adobe, security technologies for scanning, protection, and encryption, as well as device, application, and policy management technologies. The technology is managed by the ICT team on behalf of the Council however licenses can also be purchased by service areas. 3.2.6 Network commodity includes telephony, CCTV, and network lines. Responsibility for this commodity is dispersed across Council services. 3.3 As outlined above, the budget and contracting responsibility for commodities such as curriculum software, telephony, CCTV, and end user device
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purchasing are service led. 3.4 While many of the annual maintenance and license payments and arrangements have been in place for several years, the category management approach to procurement provides the opportunity to examine spend to deliver improved and/or collaborative approaches. The aim is to secure improved contracts and deliver cashable and non-cashable benefits as well as improved supplier management practices and monitoring. 3.5 The Council concluded the award of the Multi-Function Device (MFD) national framework contract, and the project is currently in progress and is expected to complete early 2025. This project will deliver revenue savings for the council over a 4-year period. 3.6 In relation to the disposal of obsolete ICT equipment such as laptops and desktop computers, the Council concluded the award of the contract to collect and dispose of equipment in line with The Waste Electrical and Electronic Equipment Regulations (WEEE). Part of the contract will generate income from the sale of equipment disposals. 3.7 Based on experience, the requirements listed below tend to be purchased as cloud services and require additional revenue funding which, consequently, are included in ICT burdens. ICT infrastructure is frequently assessed and upgraded to support the growing demands of the organisation and explore cloud computing options for increased scalability, resilience, flexibility, cost- effectiveness, to identify any savings opportunities and to maximise our current investment. 3.7.1 With increased reliance on technology and digital platforms, local government has become more vulnerable to cyber threats. Safeguarding sensitive council data and ensuring the integrity of our critical systems are paramount. The Council has routinely invested in robust cyber security measures and training to protect our data and employees. Building resilience in the face of evolving threats is essential to maintaining citizens’ trust and to ensure the smooth operation of council services. Whilst it is essential to embrace modern technologies such as Artificial Intelligence, it is also important to consider the impact of AI on cyber security, and where AI can be used to strengthen cyber posture. This will help the Council prepare for the next wave of Cyber Security regulations and compliance. Additional technology improvements will be procured through national frameworks and approval sought via committee where appropriate. 3.7.2 During 2024/25, the service created a highly efficient, productive and resilient digital experience for employees that enables a consistent experience from home, from the office and anywhere in between. The aim was to mirror the office experience from anywhere and this was created by implementing a new remote access solution and replacing the legacy virtual application delivery platform. In addition, desktop applications were installed locally on laptops and 2000 devices were upgraded to the latest version of MS office suite to
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enable data, email and calendar integration with Microsoft 365 cloud services i.e., SharePoint, MS Teams and One Drive. The employee digital experience will continue to be modernised during 2025 with upgrades on remaining laptops across the Corporate and Education estates. 3.7.3 The Council’s current Cisco telephony systems are nearing end of life. A new system is currently being researched with the relevant council business areas and industry suppliers; however, this will mean a switch from a traditionally capital funded system with periodic hardware purchases to a revenue based subscription model with reduced capital outlay for handsets and setup. 3.7.4 The Council concluded the award of the Scottish Wide Area Network (SWAN 2.0) Framework contract for BT Communications PLC to provide Managed Wide Area Network Services for the Council. As a SWAN member, the Council are contributing to the overall procurement and contract management costs, and these are included in the ICT capital spend plan. This project is currently progressing well and will deliver fit for future bandwidth capacity to council sites and will be completed by July 2025 3.7.5 The Council joined the Scottish Wide Area Network (SWAN 1.0) in 2018/19 and pricing was agreed to purchase Meraki Wireless licencing and support over a 7-year term. This term is now ending and further licencing will be required from October 2025. 3.7.6 The Council implemented a solution for streamlining the supply teacher booking process in Education which went live in April 2023 and has delivered a range of process benefits around booking and subsequently managing supply teachers. The solution has been extended to corporate services and implemented in Facilities Management with other service areas imminent. The estimated annual spend on this solution is approx. £78,000 which will be managed via a framework. Capital 3.8 The Council continues to make a substantial commitment to improving and securing the ICT infrastructure and processes to support and innovate service delivery transformation through capital investment. 3.9 Table 1 below is an excerpt from the 10-year capital plan as agreed by Council in March 2024 and includes the following recurring ICT capital budget for 2025/26. Table 1 – Existing Agreed ICT 1-Year Capital Plan Capital allocation 2025/26 ICT Security & Resilience Inc. Education Software Licensing Refresh £792,000 ICT Modernisation £677,000
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365 Implementation £240,000 Total £1,709,000 3.10 The scope for each project will include some flexibility, allowing for spend on smaller value works via the appropriate procurement route. Where possible and where opportunities arise, officers aim to secure match funding from external sources i.e., Microsoft funding to assist with implementation of Copilot. The investment projects for capital spend are detailed in Table 2 below. ICT will consult with Corporate Procurement unit to ensure the correct procurement route is followed for each spend project. 3.11 Some of the ICT capital spend may have revenue implications and this will be managed through future revenue planning and based on the actual spend. Table 2 – Proposed Projects ICT Capital Spend 2025-26 Description Capital (Est) ICT Security & DR, Resilience £792,000 1. SWAN 1.0 Contract exit cost. 2. SWAN 2.0 Implementation 3. Replace Ageing Infrastructure Hardware 4. Security Compliance remediation 5. Security Resourcing - multi-year consultancy services 6. Internal ICT resource recharges 7. Education software refresh 8. Wi-Fi Technology licensing 9. Telephony system replacement 10. Security Patching Improvements £50,000 £250,000 £100,000 £90,000 £30,000 £84,000 £30,000 £80,000 £60,000 £18,000 ICT Modernisation £677,000 1. Device replacement: a) corporate laptops b) education laptops c) education PC’s 2. Resources to Support a range of corporate projects. £554,000 £162,000 £167,000 £225,000 £123,000 365 Implementation £240,000 1. Resourcing £170,000 2. Securing and implementing SharePoint and One Drive £70,000 Total £1,709,000 3.12 Device replacement: ICT will undertake the annual device review project for PCs, laptops, Chromebooks, and mobile phones that are reaching end of life and or 5-year refresh point as per the ICT Strategy 2023-28. These items are
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purchased from nationally agreed frameworks and the overall spend is detailed in Table 2. This year there is insufficient capital budget to replace all education desktop PCs in line with the 5-year refresh programme, it is still the intention to replace a smaller number of PC’s as outlined above in Table 2. In future years ICT will consider reprofiling the device review budget to align with the number of devices requiring replaced year on year. In addition, the council will generate income from the device disposal contract as outlined in paragraph 3.6, any income generated will contribute to the shortfall of replacement education desktop PC’s. On a positive note, the supplier has extended the software on Chromebooks to maximise their lifespan, therefore, no devices are required to be replaced during 25/26. 3.13 Server and Firewall Hardware Replacement: ICT have undertaken a server and firewall replacement project in recent years to refresh ageing hardware and ensure it is up to date, secure and remains in line with technological advances. This project will continue during 2025/26, and hardware is purchased via nationally agreed frameworks with the overall spend detailed in Table 2. 3.14 Microsoft 365: The council has invested heavily in 365 cloud services and have made considerable progress on associated projects throughout 2024/25 with council services migrating to 365 email and initial pilot services migrated to SharePoint and One Drive. The main deliverable in phase 2 is to implement this technology for remaining council services and replace our long-standing use of on-premises file storage used for managing council files and folders. The project will progress from early 2025 alongside supplier delivery via national frameworks. Capital spend for project implementation encompasses supplier delivery, software purchase and resourcing for project management and support. 4. Main Issues Procurement 4.1 Consideration will be given to multi-year contracts, and contracts using framework agreements and/or contracts using dynamic purchasing systems where recurring capital/revenue budget has been approved and where this would deliver efficiencies. Where recurring revenue is approved on a yearly basis, consideration will be given to multi-year contracts, and contracts using framework agreements or contracts using dynamic purchasing systems. The authority sought in Paragraph 2.1, to include the option to enter such multi- year contracts beyond the second year for those items listed in Section 3 and the appendix to this report. 4.2 The contract strategies for each of the revenue and capital projects will continue to be developed on a project-by-project basis and will include consideration of market testing existing collaborative framework or
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collaborative purchasing system, running mini competitions, direct awards as well as full tender processes. 4.3 The tendering and contracting process will continue to identify potential future revenue implications for new contracts. Where required these will be included as savings/burdens in future ICT revenue budget estimates considering current revenue spend to offset the budgetary impact. 4.4 Where the value of the contract is £213,477 (VAT inclusive) and above, in the event of the financial or other terms of a tender falling out-with delegated powers, the relevant Chief Officer will submit a report to Council, Corporate Services or Tendering Committees. Reliance on Technology 4.5 There remains a high pace of technological improvements across the council against a background of reduced budgets and resources, and increased threat of cyber-attacks which is increasing pressure on local authorities. 4.6 Therefore, it is critical to continue investment in modern, innovative, and secure technology regardless of the pressures, this investment will ensure continued focus on effective use of technology, support innovation and equip our employees with the digital tools to enhance service delivery and ensure citizens continue to have access to key council services. People & Technology teams can co-create the conditions for the next generation of council services, where real change can be delivered by understanding which technologies meet service areas needs and having the agility to evolve. 4.7 The financial resources to deliver this technology are included in section 3 of this report, such as: data and bandwidth demand increasing – e.g., surge in MS Teams video meetings, critical device updates, data backups and migration to cloud services for telephony and 365 solutions. services exploring and implementing digital transformation. embracing modern technologies e.g., Azure, Power apps, Artificial Intelligence and Automation. software licences e.g., as services move to hosted systems and increased cost of subscription licences. cyber security where increased threats and risk in the security landscape require additional investment. system design improvements where the shift to modern and hybrid working needs reliable, pervasive and secure connectivity. device replacement e.g., as schools aim for a 1:1 device per pupil ratio. 4.8 ICT licensing is increasingly being offered as cloud/hosted subscription-based licensing model and this change of delivery mechanism is driving change to the current funding profile for ICT goods and services. In addition, suppliers are now reducing on premise system support and forcing customers to use
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cloud hosted system at increased cost. This change means expenditure is transitioning from a mixture of capital and revenue budgets to a need for a revenue only budget. ICT will continue to collaborate with resources colleagues to monitor this transition and continue to ensure the Council follows a cloud appropriate strategy. 4.9 In recent years there has been no increase in the ICT employee resource to match increasing support demands, indeed the FTE has steadily reduced and was reduced further in 23/24 and will, potentially, be reduced again in 25/26 as part of the council budget exercise. Several short-term temporary appointments have been used and will continue in 25/26 to support specific project-related tasks, ICT will continue to use supplier consultancy for specialist projects and upgrades and the dependency on suppliers may increase as resources continue to reduce. There is a risk that expected service levels may be unsustainable as ICT resourcing levels are considered for reduction as part of Council saving exercises. 4.10 The Council has an ambitious 5-year People First Strategy which encompasses digital, engagement, learning, development, wellbeing, and workforce planning. ICT are aligned and collaborating closely with the councils’ digital team with both teams having established close links with the National Digital Office and other key stakeholders. Ongoing investment in technology and upskilling the workforce to support this is paramount to help transform services and deliver them in modern ways, minimising costs where possible. Digital is the route to delivery of modern efficient self-service services; therefore, investment is essential to ensure future delivery of services to citizens and skills of employees. 4.10.1 Key areas for the coming year will be Microsoft 365, where both teams will work jointly to support services with sound structures and best practice as they migrate to M365 collaboration services (MS Teams, SharePoint and OneDrive). Following this, the Digital team will undertake Fit for Future reviews to ensure teams are prepared and aware of the capacity/capability of this modern technology. 4.10.2 In addition, building on the digital awareness campaign, the ILearn dashboard has been created alongside a quarterly digital theme campaign - ‘Putting People First,’ ‘Turning Data into Diamonds’ and ‘Maximising Tech with Microsoft.’ Work in this area will continue building on these themes to improve capability and create more informed decision making. 4.10.3 Moving forward, both the Digital and ICT Teams will be working hard to create a curious culture, confident with technology with an understanding that digital skills are everyone is and have a focus on the service user. To support this, the Digital team continue to offer service design training, facilitate a Council service design community where the focus is improvements for the end user. Using this approach internally at every opportunity the team are currently undertaking a review of Onboarding where the focus will be on ensuring new
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employees understand and value the aims and values of the organisation and have everything the need to succeed. 5. People Implications 5.1 There is the potential for reduction in available resources which may impact the Council’s ability and capacity to deliver spend projects in the timeframe. 5.2 The ICT team has an established review and service/improvement process to ensure resources are allocated to the highest priority work. 5.3 Some of the identified projects are expected to include design, implementation, skills transfer and project consultancy services, and training as specialist knowledge is required when introducing modern technologies, for example, introduction of Microsoft SharePoint. ICT employees will be trained, gain experience, knowledge, and skills during these projects to ensure they can manage and develop the technologies moving forward. 6. Financial and Procurement Implications 6.1 Existing Framework Agreements or Dynamic Purchasing System will be used where they have proven to demonstrate best value and where practical. Revenue budget is in place for all licenses and maintenance spend identified in the Appendix. This, plus an inflationary increase, is included within the draft revenue budget for 2025-26 (subject to Council approval in March 2025). 6.2 The ICT and Corporate Procurement teams engage with service areas when introducing new ICT systems so that technology, procurement, and security issues can be identified during the procurement and evaluation stages and prior to contract signing. This early engagement approach also helps identify potential savings and spend opportunities so that these can be included in future budget processes. 6.3 The cost estimates for capital spend are based on high level research and may vary but will remain within the capital plan due for approval by Council in March 2025 as outlined in Table 2. The projects specified can be scaled up or down. 6.4 All procurement activity conducted by the Council for spend valued from £213,477 (VAT inclusive) is subject to contract strategy. The contract strategy shall include but not be limited to; options appraisals, contract scope, service forward plan, market condition, procurement model and routes – including existing delivery vehicles, roles and responsibilities, risks, issues and opportunities and on-going contract management. Some of the options considered include for example: 7. Risk Analysis
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7.1 There is a risk that the capital project actual costs may exceed the capital project estimates as detailed in Table 2. This risk will be mitigated by a range of contract strategy options being explored as well as building scalability into the tender for example reducing the number of devices being replaced or specification of the device. Ongoing regular Budgetary Control Reporting will provide information on any significant adverse variance in cost and mitigating actions available. 7.2 ICT equipment prices continue to increase in the short to medium term due to external factors such as the global economy challenges. In addition, internal factors such as elected members motion to explore alternative procurement routes may also result in increased cost to the Council. Any price increases will impact project spend and volume of devices able to be purchased and this may result in ICT unable to meet our agreed 5-year device refresh strategy. 7.3 Linked to Strategic Risks: SR04 Keeping Abreast of Developments in the Innovative Use of Technology; and SR08 Threat of Cyber Risk ensure visibility and scrutiny through Audit Committee. 8. Equalities Impact Assessment (EIA) 8.1 A full screening has been conducted and there is no impact on any group for any of the technology spend plans. 8.2 The annual device replacement project will continue to include delivery of specialist ICT equipment/adaptations for employees and pupils with additional needs as required. This will also apply where public access devices are being replaced. The procurement process will be conducted in line with the Council’s procurement and equality guidance, and implementation planning will consider equality issues. 9. Environmental Sustainability 9.1 ICT is committed to sustainable technology to lessen energy consumption, carbon emissions, enhance resource management, and decrease the amount of technology waste produced. In accordance with council contract strategy development and the Scottish Government Sustainability toolkit, the council will explore sustainability opportunities in all tenders. Contract strategies for individual projects will consider a range of sustainability issues including the environmental implications of ICT equipment and services. 10. Consultation 10.1 Legal, CPU, Education and the Section 95 Officer have been consulted on the content of this paper. It was not necessary to consult with our Trades Union colleagues on this report. However, the Council’s ICT strategy and activity is discussed with the Convenors group where required.
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11. Strategic Assessment 11.1 High quality ICT equipment and services contribute to the Council’s 2022-27 strategic objectives to ensure our workforce is resilient and skilled where digital technology supports service delivery for our citizens; and all employees are provided with the technology needed to do their job effectively. 11.2 ICT is part of the People and Technology service and annual spend plans have been developed in support of the Council’s core strategic ambitions across business service areas as reflected in the Council Strategic 5-year plan 2022-27 and ICT Strategy 2023-2028. 11.3 The planned capital spend on improved security, resilience and mobility ensures that a fit for purpose and secure ICT environment that supports all the Council service areas to deliver on their strategic objectives. 11.4 The ICT contracts will contribute to delivery of the Council’s strategic priorities through the development of robust contract strategies which will explore the inclusion of community benefits which improve economic growth and employability. Further opportunities to maximise the positive social, economic, and environmental impact for West Dunbartonshire Council through the contracts will also be explored. Name: Victoria Rogers Designation: Chief Officer - People and Technology Date: 9th January 2025 Person to Contact: James Gallacher, Manager of ICT, 07531184141 Appendix: ICT Estimated Revenue Spend over £10,000 per System Background papers: EIA ICT Strategy 2023-28 Wards Affected: All
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Appendix 1 – Estimated Annual Revenue Spend over £10,000 (based on 2024-25) Product Supplier Contract End Cost Microsoft Enterprise Licences Phoenix 31.12.2025 £671,920 Wide Area Network SWAN 2.0 2033 £201,000 Social Work Case Management & Scheduler OLM 31.03.2025 £130,590 Integrated Housing Management System Aareon UK 07.02.2027 £116,000 Education MIS SEEMIS 02.05.2025 £103,000 Resource Booker Omnijo 31.03.2025 £78,000 Revenue & Benefits Northgate 31.03.2025 £77,300 SIP Telephone Lines Capita/Gamma 31.01.2026 £75,000 Firewall Support BT 12.05.2029 £75,000 Automation Software UI Path 2027 £74,400 365 Cloud Backup Barracuda 31.10.2025 £64,100 Server Maintenance Park Place 02.09.2025 £58,200 Electronic Document Management Civica 31.03.2025 £47,400 Water Management System EFAM Watermans 2025 £46,500 Leisure Management MRM Gladstone 01.11.2025 £45,300 Finance Management Agresso Unit 4 30.11.205 £45,000 Online Forms Granicus 30.11.2025 £44,500 Vulnerability Management Qualys Computacenter 24.12.2025 £41,000 Energy Management Navigator Inspired 01.04.2025 £36,000 Employability Case Management Advice Pro ACM 30.03.2025 £32,000 Corporate Arrears System Merchant Software 31.05.2025 £29,600 Security Filtering Management Infosec 04.06.2025 £29,500 Library Management Spydus Civica 1.12.2029 £29,110 Planning & Building Uniform System IDOX 31.03.2025 £29,000 Virtual Server Environment Support Phoenix VMware 22.12.2025 £27,300 Roads – Lighting, Collision, Flood Mgmt. WDM Various £27,300 Job Costing CIS Core Accuris 31.12.2025 £27,000 Backup Management Insight 31.12.2028 £25,600 Local Government Digital Transformation Scottish Gov. 31.03.2025 £26,700 Flare Environmental Services Civica 31.03.2025 £25,400 Workforce Management Frontier 07.10.2025 £25,200 Asset Management CIPFA 30.04.2025 £24,300 Freshservice ICT Service Desk Softcat 28.02.2025 £23,400 Election Management Avantguard IDOX 28.02.2025 £19,700 Housing Benefits and Allocations Civica 31.03.2024 £19,000 Vehicle Management Fleetmaster Trapeze UK 31.03.2025 £18,500 Education Gateway Glasgow C.C 06.06.2025 £17,600 Scholar Education Teaching Materials Heriot Watt 15.09.2025 £17,200 Council Website Support Brace Digital 31.10.2025 £15,600
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Device Security Management Antivirus IT Bus Ltd. 26.06.2025 £13,600 NBS Building RIBA 31.03.2025 £12,800 Device Remote Support Software LogMeIn 31.01.2026 £11,660 Council Meetings System CMIS 30.04.2025 £11,500
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