Erratum Notice and revised Item 13
West Dunbartonshire Council · 26 March 2025
Back to West Dunbartonshire Council — 26 March 2025 and its agenda
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Erratum Notice West Dunbartonshire Council Date: Wednesday, 26 March 2025 ___________________________________________________________________ Time: 16:00 ___________________________________________________________________ Format: Hybrid meeting ___________________________________________________________________ Contact: Carol-Ann Burns, Senior Democratic Services Officer Email: carol-ann.burns@west-dunbarton.gov.uk committee.admin@west-dunbarton.gov.uk Dear Member I refer to the papers for the above meeting which were issued on 13 March and enclose a revised version of the report relating to Item 13, ‘Feasibility Report re: Alternatives to the Scottish Government Procurement Unit Framework IT Hardware and Software”. The previous version included commercially sensitive information which we cannot publish. This replaces pages 149 to 164 of the original papers issued for the meeting. Please disregard the version issued previously. Please accept my apologies for any inconvenience caused. Yours faithfully PETER HESSET Chief Executive
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Distribution:- Provost Karen Murray Conaghan Councillor John Millar Councillor James Bollan Councillor Lawrence O’Neill Councillor Ian Dickson Councillor Lauren Oxley Councillor Diane Docherty Councillor Chris Pollock Councillor Fiona Hennebry Councillor Martin Rooney Councillor Gurpreet Singh Johal Councillor William Rooney Councillor Daniel Lennie Councillor Gordon Scanlan Councillor David McBride Councillor Hazel Sorrell Councillor Jonathan McColl Councillor Clare Steel Councillor Michelle McGinty Councillor Sophie Traynor Councillor June McKay Chief Executive Chief Officers Date of issue: 20 March 2025
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WEST DUNBARTONSHIRE COUNCIL Report by Chief Officer – Regulatory and Regeneration Council: 26 March 2025 ___________________________________________________________________ Subject: Feasibility Report re: Alternatives to the Scottish Government Procurement Unit Framework IT Hardware and Software 1. Purpose 1.1 To report on the feasibility of the move away from the Scottish Government Procurement Unit Framework for the supply of IT Hardware and Software as proposed in motion agreed by Council at the meeting of 30 October 2024. 2. Recommendations It is recommended that Council: 2.1 Notes the contents of this report, and, 2.2 Agrees to the continued utilisation of the Scottish Government Procurement Unit frameworks for the supply of hardware and associated software where in the professional opinion of the Chief Officer People & Technology, this represents the Best Value solution for the Council. 3. Background 3.1 Council, at the meeting of 30 October 2024 agreed the following motion: “With the HP contract entering its final extension option with the Scottish Government we should be looking at options, therefore Council agrees to explore alternative procurement options/platforms open to the Council when we purchase our IT hardware/software. HP currently provide all the hardware/software for the Israeli Defence Force in Palestine, where to date 40,000 Palestinians have been killed by the IDF. Officers should report back to the Council on the feasibility of this move with any potential costs/savings included.” 3.2 The Council utilises the Scottish Government mobile client device framework for laptops and the Scottish Government desktop client devices framework for desktops both via HP Inc. UK Limited. The mobile client devices contract is due to expire on 15th August 2025 and the desktop client devices framework is due to expire on 31st August 2025. Scottish Government Procurement are currently working collaboratively with all representatives across the Scottish public sector to re-tender these requirements. 3.3 The options for the Council would be: ITEM 13 149
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• Utilise the next iteration of the Scottish Government framework agreement; • Procure via an alternative framework such as Crown Commercial Services or Yorkshire Purchasing Organisation; or • Re-tender on our own in sufficient time to have a new contract in place prior to expiry of this framework. 3.4 This paper will look at the commercial feasibility of the above options in line with the Scottish Procurement model of cost, quality, and sustainability best value. 4. Main Issues 4.1 Cost 4.1.1 The Crown Commercial Services RM6098 Tech Products framework has catalogue pricing available for direct award for a large variety of suppliers and models. Using this pricing as a comparison against similar units, this route would increase costs by: • Laptops - £65k per annum based on previous year spend. • Desktops - 35k per annum based on previous year spend. • Total £100k per annum. 4.1.2 The Yorkshire Purchasing Organisation Sustainable Hardware, Asset Recycling and Data Destruction Framework has catalogue pricing available for direct award for a variety of suppliers and models. Using this pricing as a comparison against similar units, this route would increase costs by: • Laptops - £62k per annum based on previous year spend. • Desktops - £98k per annum based on previous year spend. • Total £160k per annum. 4.2 An open tender for a West Dunbartonshire framework could in theory improve upon these prices, however, even in the best-case scenario this would still be likely to be considerably more expensive than the Scottish Government framework. The Scottish Government framework also provides longer term cost certainty as this Scotland-Wide bargaining power also allows for the framework to dictate fixed pricing for the duration of the agreement. 4.3 There would be additional costs to support an independent tendering exercise given the complexity. As a minimum, this would require an experienced member of the ICT team to develop a specification. It should be noted that requirements are not only related to the hardware itself, but also a number of additional services related to roll out (logistics, asset tagging, imaging, user guidance etc), sustainability and disposal. An additional two ICT resources would be required for evaluation and a procurement resource would be required. Assuming a 3-month mini competition this would equate to: 150
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Team Role Duration (weeks) Grade Total Cost Procurement Procurement Support 12 8 £9,921 ICT Specification and Evaluation 12 8 £9,921 ICT Evaluation 4 8 £3,307 ICT Evaluation 4 8 £3,307 32 weeks 8 £26,457 4.4 Sustainability – the Scottish Government Framework can dictate that the latest models are offered via the framework and that priority of sales of these models is given to framework members where there is limited supply. This ensures a higher level of sustainability wins due to energy efficiency improvements of new models as the higher computing power of the newer models provides a longer lifespan and therefore less recycling requirements. This is demonstrated in that the exact model currently being purchased by the Council via the Scottish Government framework is not currently available on the Crown Commercial Services framework. A move to an older model device would mean the refresh rate for laptop replacement would need reduce from 5 years (as per ICT Strategy 2023-28) to 3 years. This would be at an increased cost of £333k per annum. The economies of scale allow HP to commit to account management, operations, pricing, and order management teams based in Glasgow with a long-standing sub-contract for warehousing and roll out services based in Livingston via XMA Ltd. 4.5 Quality – The professional view of the HP units is that they represent high quality with low incidence of faults with an enhanced warranty in place as part of the agreement. As noted in the sustainability section – the spend level gives priority access to supply of newer models, this also provides a quality advantage in that all core commercial devices under the framework have between a 12–18-month lifecycle and guaranteed spare parts for up to 5 years after device end of sale date helping to maximise product lifespan. Orders under the framework agreement are given precedence over other orders which is extremely useful in situations where supply chains are stretched (this was a notable advantage due to global supply chain issues with chipset production in previous years. Older models have lower specification and processing power which would impact on output of Council employees and devices would not meet the demands of modern software and use of new technologies such as artificial intelligence and latest Windows operating systems. 4.6 Logistics - Orders under the framework agreement are given precedence over other orders which is extremely useful in situations where supply chains are stretched (this was a notable advantage due to global supply chain issues with chipset production in previous years). 151
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4.7 Limitations on ability to restrict the market - the Public Contracts (Scotland) Regulations 2015 require that all potential suppliers must be treated equally and without discrimination. This means that a company could only be excluded from bidding for a contract if the Council were to proceed by tender in its own right if it met one of the grounds in procurement legislation permitting its exclusion or, in the case of a contract already awarded, there was a material breach of the terms of that contract warranting termination. Scottish Government have further stated that they are not aware of any such grounds for exclusion or breach of contract in relation to the current Framework Agreements with HP Inc UK Ltd. Therefore, not only could HP Inc UK Ltd bid for any tender the Council may issue but given they have been successful in proving best value for the previous two national frameworks, would likely be highly competitive. Any move to unlawfully exclude them would be likely to result in the setting aside of any contract and potentially a fine and substantial damages awarded to HP Inc UK Ltd. It should also be noted that direct award to another supplier from Crown Commercial Services or Yorkshire Purchasing Organisation frameworks is possible. However, as detailed below, this would be at additional cost. 5. Options Appraisal 5.1 Cost The Scottish Government mobile client device framework delivers substantial value for money on laptops and desktops due to the economies of scale in having buy in from the vast majority of the public sector in Scotland. The below table summarises pros and cons of the possible routes to market: Route to Market Pro’s Con’s HP Laptop Model Used for Price Comparison HP Desktop Model Used for Price Comparison Scottish Government mobile client device framework Developed specifically for Scottish public sector laptops requirements. See section above. No commercial cons HP EliteBook 640 G11 Series Intel ultra 5 upgraded to 16GB RAM 3 year on-site warranty Elite 800 G9 SFF Intel i5- 13500 – HDD 512GB SSD 16GB RAM 3 year on-site warranty Crown Commercial Services (via mini competition) RM6098 Tech Products – Lot 2 (NB route also In comparison to Open tender – pre- agreed terms and conditions As detailed above in cost, quality, logistics and sustainabilit y sections. Mixture of manufacture rs and resellers on HP EliteBook 640 G11 Series Intel ultra 5 upgraded to 16GB RAM* Elite 800 G9 SFF Intel i5- 13500 – HDD 512GB SSD 16GB RAM * 152
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used by ESPO) the framework (Including HP). However, may unnecessari ly exclude some manufacture rs YPO Sustainable Hardware, Asset Recycling and Data Destruction Framework - 1161 via mini competition In comparison to Open tender – pre- agreed terms and conditions As detailed above in cost, quality, logistics and sustainabilit y sections. Suppliers are re- sellers who add their own uplift (Softcat, XMA etc) HP EliteBook 640 14 G9 i5- 1235U 16GB RAM** HP Elite 800 G9 SFF Intel® Core™ i5 i5-12500 8 GB DDR5- SDRAM 256 GB*** Open Tender Most transparent option Same issues as Crown Commercial Services, with added complication that terms and conditions would need to be agreed with little bargaining power assumed similar costs to Crown Commercial but may be higher due to additional supplier tendering costs assumed similar costs to Crown Commercial but may be higher due to additional supplier tendering costs) * Crown Commercial Services has a 1-year parts only warranty rather than 3- year next business day response, onsite, parts and labour. So, costs would be more expensive than this. ** YPO supplier pricing does not detail warranty provided. This is an older model G9 variant – the framework did not have direct award pricing for G11 model. 153
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*** YPO supplier pricing does not detail warranty provided. This is the closest direct comparison the framework. This model would require increased RAM (8GB-16GB) and storage space (256GB-512GB) to be comparable to current model purchased via Scottish Government 5.2 It should be noted for reasons of commercial confidentiality that line-item pricing has been removed from this report. However, the overall impact of pricing would be: Laptop additional cost = £138k Desktop additional cost = £224k Total Additional cost per annum = £362k This illustrates the significant economies of scale achieved by the current Scottish Government framework. 5.3 Cost Against Other Manufacturers The table below summarises the models of similar specification used for comparison of pricing of other manufacturers. This is a high-level comparison for: laptops operating Windows 11 Pro, intel ultra 5 processor, 16GB RAM and 256Gb storage and for small form factor desktops operating Windows 11 Pro, i5 processor, 16GB RAM and 512Gb storage utilising the latest models available for each manufacturer. Other factors are considered during the national framework such as energy efficiency, robustness against accidental damage etc. Laptop Manufacturer Scottish Government Crown Commercial Services YPO HP EliteBook 640 G11 EliteBook 640 G11 EliteBook 640 G11 Lenovo N/A ThinkPad E16 Gen 2 21MA ThinkPad E16 Gen 2 21MA (only 8GB RAM) Microsoft N/A Surface Laptop 6 Surface Laptop 5 Samsung N/A Galaxy Book4 Pro Galaxy Book4 Pro Desktop Manufacturer Scottish Government Crown Commercial Services YPO HP 800 G9 SFF 800 G9 SFF 800 G9 SFF Dell N/A OptiPlex 7020 OptiPlex 7010 Acer N/A Veriton X2 VX2720G Veriton X2 VX2720G only 8GB RAM 154
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Lenovo N/A ThinkCentre M70s Gen 4 12DT ThinkCentre M70s Gen 3 12DT 5.4 It should be noted for reasons of commercial confidentiality that line item pricing has been removed from this report. However, the overall impact of pricing is included below. Analysis of pricing of the units above, highlights that the framework pricing for Laptops via the Scottish Government framework is extremely competitive. There is also a reasonable cost advantage for desktop units. Against the next cheapest models, costs of switching would be: Laptop additional cost = £65k Desktop additional cost = £35k Total Additional cost per annum = £100k 5.5 Given this cost differential, economically it would be cost effective to continue with the current Scottish Government framework offering. Further analysis could be conducted to see pricing against the new frameworks for go live in August 25. However, historically they have provided the best value. 5.6 Additional Service Offerings Provided By HP Inc UK Ltd It should also be noted that the above cost savings are only part of the overall benefits provided by the Scottish Government Framework. Deployment, recycling, and disposal services are offered by HP Inc UK Ltd’s Scottish based sub-contractor XMA. These added value services are extremely beneficial for our teams as device deployments can be extremely resource intensive, particularly given approval of 4 FTE reductions in the team as part of Council savings exercise 25/26. These services include: • Device Enrolment • Image Loading • Asset Tagging • BIOS Configuration • Deinstall and Hardware Recycling • Secure Sanitisation of Storage Media (wipes data to certified standards to allow recycling) These services were more expensive via YPO framework than SG framework. It should be noted that for the YPO framework, only some suppliers provide details of these costs for direct award. The above shows pricing for the supplier (Nexus Fusion) as they offer the closest comparable HP Laptop device. Also these rates are not available via Crown Commercial Services Framework 6. People Implications 155
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6.1 Older models have lower specification and processing power which would impact on output of Council employees and devices would not meet the demands of modern software and use of new technologies such as artificial intelligence and latest Windows operating systems. 6.2 No additional resource issues are anticipated should the recommendation to move to the new Scottish Government framework (when in place) be followed. 7. Financial and Procurement Implications 7.1 It is estimated that the impact on the Council would be an increase of £100k. It should be noted that this does not account for non-cashable benefits such as increased officer delivery. 7.2 Some areas of our current specification would be delivered at additional cost if included in an open tender, mini-competition or direct award, whereas some could not be provided as we do not have the economies of scale to dictate provision. One key feature of the national framework agreement is that it has achieved fixed pricing over the duration of the framework – this is something that would be difficult to negotiate individually without significant cost increases. 7.3 Officers’ view is that from a commercial standpoint best value for the Council would be in utilising the new Scottish Government framework due to the significant economies of scale. It should be noted that the new framework is being tendered via an open process and there is no guarantee that HP will be the supplier of the new framework. Nonetheless by tendering ourselves, we would be virtually certain to lose the economies of scale and in any case, we would have to consider an HP bid which they would be in a strong position to bid competitively. 8. Risk Analysis 8.1 A switch from the Scottish Government framework, in its current or future incarnation would have a substantial impact on costs, employee productivity and sustainability. These are captured above. 8.2 None of the other options noted above are likely to offset such disadvantages. 8.3 As noted above, any attempt to exclude HP Inc UK Ltd from an open tender would be likely to result in fines and damages and officers would not be able to legally proceed with an award in such circumstances, leaving the Council without a supplier for essential equipment. 9. Equalities Impact Assessment (EIA) 9.1 A full EIA assessment has been conducted and there is no impact on any group for alternative technology spend plans. 156
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9.2 The annual device replacement project will continue to include delivery of specialist ICT equipment/adaptations for Council employees and pupils with additional needs as required. This will also apply where public access devices are being replaced. Any alternative procurement process will be conducted in line with the Council’s procurement and equality guidance, and implementation planning will consider equality issues. 9.3 The Councils approach to supporting change and improvements, consider accessibility and usability of systems and their interaction for users. This is especially important for disabled people however not limited to this protected characteristic. The Council are Duty bearers in terms of the Human Rights Act, and duties cover both people and legal persons such as companies that supply or might supply goods and services to the Council. The suggested approach does not breach these duties. 9.4 The proposed approach does not involve any negative impacts in terms of Equal Act considerations, including the Procurement Duty of the Public Sector Equality Duty in Scotland, the Fairer Scotland Duty or obtaining Best Value. Where possible the Council will use social benefit clauses, when looking at its procurement. 10. Environmental Sustainability 10.1 Scottish Procurement consider a number of sustainability criteria within their requirements – this includes materials and energy usage. These could be met under selection of units for direct award and from inclusion of requirements under framework and mini-competition process. 11. Consultation 11.1 This paper included input from Chief Officer People & Technology and Chief Officer Resources. 12. Strategic Assessment 12.1 Ensuring best value ICT devices supports Council and officers in delivery of the five strategic priorities of the Council’s Strategic Plan. Alan Douglas Chief Officer Date: 5/3/25 Person to Contact: Iain Skene – Procurement Manager e-mail: iain.skene@west-dunbarton.gov.uk James Gallacher – Service Manager - ICT E-mail: james.gallacher@west-dunbarton.gov.uk 157
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Appendices: Appendix 1 Equality Impact Assessment Background Papers: Frameworks referred to within the paper: Scottish Government - mobile client devices framework (SP-19-020) Scottish Government - desktop client devices framework (SP-22-019) Wards Affected: All wards. 158
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Assessment No 1249 Owner JGALLACHER Resource Transformation Service People and Technology FirstName Surname Job Title Head Officer James Gallacher ICT Manager Members James Gallacher, ICT Manager Iain Skene, Procurement Manager (Please note: the word 'policy' is used as shorthand for strategy policy function or financial decision) Policy Title ICT Procurement The aim, objective, purpose and intended out come of policy To report on the feasibility of the move proposed in motion raised by Councillor Bollan at the Council meeting of 30.10.24. “With the HP contract entering its final extension with the Scottish Government we should be looking at options, therefore Council agrees to explore alternative procurement options/platforms open to the Council when we purchase our IT hardware/software. HP currently provide all the hardware/software for the Israeli Defence Force in Palestine, where to date 40,000 Palestinians have been killed by the IDF. Officers should report back to the Council on the feasibility of this move with any potential costs/savings included.” The Council uses the Scottish Government mobile client device framework for laptops via HP. This contract is due to expire on 15th August 2025. Scottish Government Procurement are currently collaborating with all representatives across the Scottish public sector to re-tender this requirement Service/Partners/Stakeholders/service users involved in the development and/or implementation of policy. Consultation with Chief Officers, Performance & Strategy Does the proposals involve the procurement of any goods or services? Yes If yes please confirm that you have contacted our procurement services to discuss your requirements. Yes SCREENING You must indicate if there is any relevance to the four areas Duty to eliminate discrimination (E), advance equal opportunities (A) or foster good relations (F) No Relevance to Human Rights (HR) Yes Relevance to Health Impacts (H) No Relevance to Social Economic Impacts (SE) Yes Who will be affected by this policy? Council employees, Council service users APPENDIX 1 159
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Who will be/has been involved in the consultation process? Chief Officers 160
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Please outline any particular need/barriers which equality groups may have in relation to this policy list evidence you are using to support this and whether there is any negative impact on particular groups. Specific group to consider Needs Evidence Impact Age Disability . Gender Reassign Marriage & Civil Partnership Pregnancy & Maternity Race Religion and Belief Sex Sexual Orientation Human Rights The Council is a Duty bearer in terms of the Human Rights Act (HRA). The HRA protects the rights of every person resident in the UK regardless of whether or not they are a British citizen or a foreign national, a child or an adult, a prisoner or a member of the public. It also applies to legal persons, such as companies. The proposed approach would not exclude companies from bidding into the process, thus would not breach the Human Rights of Companies as Legal persons Health Social & Economic Impact The Council has a duty to obtain Best Value. The Council must keep in mind the Fairer Scotland Duty when making strategic financial decisions. Reducing the costs associated with technology. Where possible the Council will use social benefit clauses, when looking at its procurement. We will ensure under any options that Council Guidance on Equality and Procurement is followed, including seeking Social benefits Positive impact for Council finances. Any option would seek to secure social benefits. 161
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Cross Cutting Procurement Act 2023 Contracting authorities must treat suppliers equally, unless there is a justified reason for different treatment. No unfair advantages or disadvantages will be given to suppliers, with equal access to information and opportunities for each procurement. You can rest assured that procurement decisions will be made without bias, and as long as you can deliver the requirements stated, you have a fair chance of success. The Council need to take into account how spending decisions may cross cut. We will therefore always check potential relevance to any and all of the protected groups above, depending on proposals in question. Procurement Act 2023 and Human Rights considerations cross cut Our approach to supporting change and improvements, will proactively take into account accessibility and usability of systems and their interaction for users. This is especially important for disabled people. Specific implementations can be impact assessed by services The Council will ensure that all relevant spending proposals are informed by evidence and take into account all the relevant areas covered by our approach to impact assessment and Positive 162
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Actions 163
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Policy has a negative impact on an equality group,but is still to be implemented, please provide justification for this. Will the impact of the policy be monitored and reported on an ongoing bases? Q7 What is you recommendation for this policy? Please provide a meaningful summary of how you have reached the recommendation EIA 1249: We are Duty bearers in terms of the Human Rights Act, and duties cover both people and legal persons such as companies that supply or might supply goods and services to the Council. The suggested approach does not breach these duties. The proposed approach does not involve any negative impacts in terms of Equality Act considerations, including the Procurement Duty of the Public Sector Equality Duty in Scotland, the Fairer Scotland Duty or obtaining Best Value. Where possible the Council will use social benefit clauses, when looking at its procurement. 164