{meta} Decision - Request for Approval - Exception to Contractual Standing Orders - Contract Award - Support and maintenance contract for Documentum & Captiva

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:

(1)       An exception to Contractual Standing Orders in accordance with Paragraph 3.1 as follows:

·        *Specialist services/supplies which are available only from one supplier. For example, specialist niche consultants or suppliers where there is a sole supplier of patented or proprietary articles, or materials or services exclusively provided by a statutory undertaker or other bodies.

(2)       The award of the Support and Maintenance Contract for the Documentum Enterprise Content Management Solutionas detailed in the table below:

Detail required

Title/Description of Contracted Service/Supply/Project

Support and Maintenance Contract  for the Documentum Enterprise Content Management Solution  

Name of Successful Contractor

OpenText 

Supplier Registration Number

(to be supplied by Corporate Procurement)

03148093

Type of organisation

(to be supplied by Corporate Procurement)

Private Limited Company

Status of Organisation

(to be supplied by Corporate Procurement)

SME

Contract Value

£166,938.55

Full Project

Contract Duration

36 months

Contract Start Date

01/02/2020

Contract End Date

31/03/2023

Optional Extension Period 1

N/A

Optional Extension Period 2

N/A

Who will approve each Extension Period?

Choose an item.

Contact Officer (Name & number)

David Sackfield 2141

Lead Service Group

Service Reform & Development

Reason for CSO Exception

(select all that apply)

The need for the goods, services or works is so urgent that the time needed to comply with the rules would be prejudicial to the Council’s interests

Specialist services/supplies which are available only from one supplier. For example, specialist niche consultants or suppliers where there is a sole supplier of patented or proprietary articles, materials or services exclusively provided by a statutory undertaker or other bodies

X

For reasons of compatibility with existing services/products – for example, equipment that needs parts from its own manufacturer

Where any of the standing orders are inconsistent with any legislative requirements, in which instance the provisions of the appropriate legislation shall prevail

Where the Council can demonstrate that an integrated or strategic approach to procurement is being implemented and there is a requirement to align services or contracts to co-terminus end dates

There are value for money reasons justifying a CSO Exception

School Governors: in relation to the Local Management of Schools (LMS), where schools have adopted their own standing orders

The shared legal service, in respect of the appointment of counsel

Strategic Director of CHSC: contracts for the provision of personal care services or facilities pursuant to the National Health Service and Community Care Act 1990

Funding Source

Revenue Budget

 

The Reasons are:

The purpose of this report is to seek request an exception to Contractual Standing Orders to approve the award of a contract forSupport and Maintenance for the Documentum Enterprise Content Management Solution.

Documentum is the corporate Document and Records management solution and is used core system that is extensively across the council to provide document & records management, scanning and workflow / automation solutions

 

Assessment of Risk

 

The Council has a requirement to ensure that it has adequate mechanisms in place to ensure maintenance of its IT systems.  Therefore the risks associated with not approving this exception must be balanced against the risk of not having appropriate mechanisms in place which would not be in the best interests of the Council.

 

The source of funding is Revenue Budget.

 

Legal Advice obtained:

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.

 

Whilst exceptions to CSO’s may be authorised by a decision notice from Procurement Board, as detailed in the Constitution there is still a risk of challenge from aggrieved providers if the usual tender process has not been followed. The risk of challenge increases in tandem with the value and proposed length of the extension. In this instance, as noted in the report, the value of the proposed award is relatively. However the Council is not commissioning a service which may be readily provided by a number of suppliers in the marketplace, if indeed any, and Open Text appear to be in a unique position to provide the services to the Council to realise the benefits set out in the report.

 

Whilst the value of the proposed award is below threshold, for information, 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;”

Accordingly the risk of any challenge being successful may be regarded as extremely low

 

Financial Advice obtained:

 

The budget held in 2018/19 was £339,881 and the expenditure for that year totalled £349,205, including £55,786 costs for the support and maintenance of the Documentum Enterprise Content Management Solution System. The 2019/20 expenditure costs of £55,661 will be funded from the current revenue budget of £396,881.

 

The source of funding is: Digital and Business Revenue Budget

Expenditure code C1161 5742

 

Procurement Advice obtained:

 

There is always a risk that any award of business, if made outside of the full competitive processes, could be subject to challenge by an aggrieved supplier on the basis that it ought to have been advertised and put out to competition. This risk cannot be eliminated.

 

In this instance, the Council can rely on the provision of Regulation 32 (2) (b) (ii) of The Public Contracts Regulations 2015;

 

32.—(1) in the specific cases and circumstances laid down in this regulation, contracting authorities may award public contracts by a negotiated procedure without prior publication.

(b) 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,

The direct award to OpenText represents a low risk to the Council in terms of potential challenge by other suppliers, as the Council is unable to purchase the support and maintenance from anywhere else.  Additionally it may be argued that due to the financial investment and complexity of the arrangement already in existence it would be prohibitive at this time for a fair and open competition to be undertaken and would not achieve value for money. 

 

Contact Officer:  David Sackfield                       Tel No. 0161 793 2141

 

 

*         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:   05 February 2020

                     Lead Member

 

FOR DEMOCRATIC SERVICES USE ONLY

 

*         This decision was published on 05 February 2020

 

*         This decision will come in force at 4.00 p.m. on 12 February 2020 unless it is called-in in accordance with the Decision Making Process Rules.

 

Publication date: 05/02/2020

Date of decision: 05/02/2020

Decided at meeting: 05/02/2020 - Procurement Board

Effective from: 13/02/2020

Accompanying Documents: