{meta} Decision - Approval for an Extension of Contract for Microsoft Licensing

Decision details

Decision status: Recommendations Approved

Is Key decision?: No

Is subject to call in?: No


Salford City Council – Record of Decision


I Paul Dennett, City Mayor, in exercise of the powers contained within the Council Constitution do hereby approve:


·      approve the extension of the Contract forMicrosoft Licensing.


Detail required


Title/Description of Contracted Service/Supply/Project

Microsoft Licensing

Name of Successful Contractor

Phoenix Software

Supplier Registration Number

(to be supplied by Corporate Procurement)


Type of organisation

(to be supplied by Corporate Procurement)

Private Limited Company

Status of Organisation

(to be supplied by Corporate Procurement)


Contract Value (£)

£          2,211,558

Contract Duration

24 months

Contract Start Date


Contract End Date


Optional Extension Period 1


Optional Extension Period 2


Who will approve each Extension Period?

Procurement Board (extension > £150k)

Contact Officer (Name & number)

Matt Wall – 0161 793 3993

Lead Service Group

Service Reform & Development

How the contract was procured?

(to be supplied by procurement)

Framework Call-Off (Mini Competition)

Framework Details (where applicable)

(procurement body, framework reference & title, start/ end date

Crown Commercial Services

Technology Products and Associated Services

RM6068 – Lot 3

Start 10/12/19

Ends 09/12/21

Funding Source

Revenue Budget

Ethical Contractor (EC): Mayor’s Employment Charter


EC: Committed to sign Charter


EC: Accredited Living Wage Employer

The Council Microsoft Licensing is approaching the end of its current procured contract, which has been running for 36 months since June 2020 where we have been running on the Microsoft Ramp Pricing programme, which has seen significant savings in the years achieved allowing the organisation to finically adjust the digital subscription licensing, as part of the procurement it was factored in an extension option of a further 24 months; extension options were initially factored into allowing Digital, Data and Technology the ability to monitor and understand the subscription approach to licensing as a service. The technology sector has been growing at expediential rates and becoming part of all services in most if not all, functions of everyday life.


Digital Data and Technology seeks to extend the licensing contract for 24 months. This is vital to the digital growth and digital maturity of the services and offerings internal and external, directly impacting employees and the ability to deliver digital solutions for the residents of Salford.


Throughout the current 36-month contract, we have successfully navigated a global pandemic, returned to the workplace, and improved digital and data through virtual collaboration and live data sets linked into all organisational applications giving precise data on key statutory areas of the authority’s functions (Social Care, Finance, Human Resources, Governance). In addition, Digital, Data and Technology have vastly improved the Cyber Security posture of our organisation; this has been done through the full use of the products included in our Microsoft licensing solution. Ensuring that the investment incurred by Salford has been used to the maximum potential.


Within the original procurement report dated 10th of June 2020, Digital, Data and Technology advised that simplifying our licensing model and introducing a modern approach would, in turn, benefit the organisation; this has been evident in how we operated digitally throughout a global pandemic in being fundamental in keeping statutory functions functional and allowing our workforce to continue to service residents of the City of Salford.


The extension of the contract is highly recommended for the following reasons:

·      Industry Enhanced Cyber Security Assurance

·      Directorates reliance to deliver services internally and externally.

·      Digital licensing/offerings is the 4th utility to the authority, just as important as Gas, Electricity and Water, paramount to the successful operation of the council.

·      Digital growth/enhancement and maturity

·      Safe interconnectivity to wider partner organisations

·      Data presentation and digest


Over the years one, two and three, we have seen growth in the organisation and also digitally enabling more employees that have been digitally excluded in the past; the growth in numbers is represented below:



2020 qty

2023/24 qty


Microsoft E5 Licence




Microsoft F3 Licence




Teams Calling plans




Teams Room Pro








Project Plan 1




Project Plan 3




Project Plan 5





The cost for the above reflects on the current digital user base and is subject to change based on growth or reduction of employees, the projected costs of the services per annum is detailed below: £1,105,778.52 per annum.


Over the 36 months of the initial contract Phoenix Ltd has become a sponsor partner of HOST in helping to deliver programmes aligned to skills and awareness; this is part of the social value management of digital procurements that DDaT leverage and promote with suppliers in achieving meaningful social value.


One example of this was Phoenix delivered alongside our HOST operators IN4.0 our HOST CyberFirst programme to 500-year 8 female pupils at the AJ Bell Stadium. The activity used the Microsoft Minecraft Education platform and the Frozen Planet2 module, to teach students how technology can help the planet. The session was 50% informative and 50% interactive, whereby the students took on the character of a mother polar bear who had to keep her cubs safe.


Some key information from the outcome of these programmes was:

·      82% of girls that attended are now considering a career in Cyber Security

·      65% now considering pursuing a Computer Science GCSE (nationally only 21% of girls take up this subject)

·      97% of the girls attending on the day enjoyed the session.


The above shows how impactful our digital contract procurements can be and achieve true social value outcomes.


Options considered and rejected were:

Salford do have the option to reduce the licensing model down to a lower offer called E3; this does reduce the annual spend to £800,251.32 per annum, however, this comes with a reduction of services and increased risk to the authority, it is Digital, Data and Technology’s professional recommended opinion to not procure this option, due to the significant risks and loss of services that include:

·      Teams Phone Calling.

·      Dial-Out for Audio Conferencing – reduced hybrid working.

·      Power BI Pro – Risk to the organisation to present data.

·      Personal insights – Viva.

·      Reduced Information Protection – A security risk.

·      Advanced Message Encryption – A security risk.

·      Virus/malware defender protection reduced.

·      Reduced cyber threat protection.

·      Reduced data life cycle management.

·      Privileged Access Management – Technical requirement for safe administrative elevation for changes.

·      Endpoint management – control of laptops



Salford City Council are operating on Microsoft products, and without renewing, we would become non-compliant from a licensing model and would stop Salford’s enablement from delivering digital services effectively.


Failure to extend this licensing would result in all SCC digital solutions expiring and all digital offerings no longer working and potential fines for statutory agreements and non-licence conformity.


It would also remove the cyber security protection, increasing the risk level to the organisation further beyond the current government level. “SEVERE means an attack is highly likely” without any mitigation to protect, defend or stop a cyber security attack. This poses a significant operational and reputational risk to the authority and broader to our data regarding our residents.


Salford relies on the availability of our systems on a daily basis. A secure online environment is essential to Salford City Council, providing an ever-increasing number of online services to Salford citizens and businesses. The ability to conduct online transactions securely is central to the delivery of public and commercial services and communications to the people of Salford.


The source of funding is: Revenue Expenditure


Legal Advice obtained - Yes


Financial Advice obtained - Yes


Procurement Advice obtained - Yes


HR Advice obtained – N/A


Climate Change Implications obtained – N/A

Contact Officer: Matt Wall

Telephone number: 0161 793 3993


Please delete from the bullets below any which are not relevant


This matter is also subject to consider by the Lead Member for Service Reform. The Lead Member has been consulted and is supportive of the proposed contract.


Signed:     Paul Dennett     Dated:    24 May 2023.

                   City Mayor



*           This decision was published on 25 May 2023

*           This decision will come in force at 4.00 p.m. on 1 June 2023 unless it is called-in in accordance with the Decision Making Process Rules.


Publication date: 25/05/2023

Date of decision: 24/05/2023

Decided at meeting: 24/05/2023 - Procurement Board

Accompanying Documents: