{meta} Decision - Request for Approval - Contract Award - Cash Receipting Software - Civica Pay

Decision details

Decision status: Recommendations Approved

Is Key decision?: No

Is subject to call in?: Yes

Decision:

Salford City Council - Record of Decision

 

I Councillor Hinds, Lead Member for Finance and Support Services and chairman of the Procurement Board, in exercise of the powers contained within the Council Constitution, do hereby approve the award of the contract for cash receipting software as outlined below:

 

 

Detail required

Title/Description of Contracted Service/Supply/Project

Cash Receipting Software (Civica Pay)

Name of Successful Contractor

Civica Group Limited

Supplier Registration Number

(to be supplied by Corporate Procurement)

04968437

Type of organisation

(to be supplied by Corporate Procurement)

Private Limited Company

Status of Organisation

(to be supplied by Corporate Procurement)

Non-SME

Contract Value

£314,200

Full Project

Contract Duration

 60 Months

Contract Start Date

01/09/2019

Contract End Date

31/08/2024

Optional Extension Period 1

 

Optional Extension Period 2

 

Who will approve each Extension Period?

Choose an item.

Contact Officer (Name & number)

Lead Service Group

Finance & Corporate Business

How the contract was procured?

(to be supplied by Corporate Procurement)

Quotation (Formal)

Framework Details (where applicable)

(Procurement Body, Framework Reference & Title, Start/End Dates, Hyperlink, etc.)

Funding Source

Combination of Above (please detail below)

Implementation costs will be funded on the capital programme, on-going costs will be met from the revenue budgets


 

The Reasons are: It provides continuity with the existing system with the consultants for the current system and for the new system being provided by the same supplier. 

Options considered and rejected were .Alternative providers were more expensive and would involve managing two suppliers which would inevitably mean more staff time and resources being required to manage two supplier relationships.

 

Assessment of Risk . By moving to CivicaPay the Council will ensure that it remains compliant with PCI regulations.  If the Council did not move to CivicaPay and remained with PARIS it would not be able to take card payments from November 2019, which would heavily impact on income.

The source of funding: The implementation costs will be met from the capital programme (IT refresh) and the running costs will be met from the existing budgets within customer services

 

Legal Advice obtained. Tony Hatton, Principal Solicitor, tel. 219 6323

When commissioning contracts for the procurement of goods, services or the execution of works, the Council must comply with the Public Contracts Regulations 2015 (PCR) and its own Contractual Standing Orders (CSO’s), failing which a contract may be subject to legal challenge from an aggrieved provider.

The risk of challenge increases with the value and duration of a proposed contract being awarded. Here the period proposed is a relatively long one and for a reasonably high value. However, the provider appears to be within a very limited market to provide the services, which will realise the benefits set out at section 3 of the report.

Direct awards of contracts may be made in limited circumstances, set out at regulation 32 of the PCR (“Negotiated procedure without prior publication”) such that reg 32 (2)(b)(ii) confirms use of the procedure:

“…where the works, supplies or services can be supplied only by a particular economic operator for any of the following reasons:—

 (ii)  competition is absent for technical reasons,

 but only….where no reasonable alternative or substitute exists and the absence of competition is not the result of an artificial narrowing down of the parameters of the procurement;”

Assuming the Council is able to satisfy that test should any challenge materialise, the risk of any such challenge being successful may be regarded as low.


Financial Advice obtained . The implementation costs will be met from the capital programme (IT refresh) and the running costs will be met from the existing budgets within service reform

 

Procurement Advice obtained . There are always risks associated with awarding contracts directly to suppliers without following open competition as this could potentially lead to a challenge from an aggrieved supplier if the contract opportunity was not sufficiently advertised in accordance with the Public Contract Regulations (PCR).  The risk increases in tandem with the value and length of the proposed contract, and would be on the principle that there are possibly other suppliers within the EU member states who could offer similar services.  Without evidence to support a single supplier market, this risk would remain.

 

There is provision in the PCR which permits negotiation of a contract without prior publication of a contract notice.  The grounds for applying it in this instance would exist in Regulation 32, where the service can only be supplied by a particular economic operator because competition is absent for technical reasons.

 

The market for this type of software is extremely limited therefore the risk of challenge to the proposed award is therefore considered to be low.

 

The following documents have been used to assist the decision process.

Report to procurement board 20 February 2019

Contact Officer:  Tony Thompstone                             Tel No 793 2016

 

 

*         This decision is not subject to consideration by another Lead Member       

*         The appropriate scrutiny committee to call-in the decision is the Overview and Scrutiny Board.

 

 

 

 

Signed:    BILL HINDS                                      Dated: 20 February 2019

                     Lead Member

 

 

*         This decision was published on 20 February 2019

                                            

*         This decision will come in force at 4.00 p.m. on 27 February 2019 unless it is called-in in accordance with the Decision Making Process Rules.

Publication date: 20/02/2019

Date of decision: 20/02/2019

Decided at meeting: 20/02/2019 - Procurement Board

Effective from: 28/02/2019

Accompanying Documents: