Issue - meetings

That a Framework Agreement be awarded on a 4 year term in two Lots as follows:

i).         Lot 1: Managed Services be awarded on the basis of an overall framework to the recommended single supplier, as set out in the Part 2 Annex to the report, to provide a managed service for the ongoing SAP maintenance and monitoring of the SAP system.

ii).        Lot 2: Application Development be awarded on the basis of a framework agreement with the appointment of the ten recommended suppliers, as set out in the Part 2 Annex to the report, to provide SAP development services.

Reason for decision

To provide value for money and deliver both savings and efficiencies for the Council.

[The decisions on this item can be called in by the Council Overview and Scrutiny Committee]

The Cabinet considered a Part 2 Annex to the report received under minute item 80/13. The Annex had been circulated in Part 2 of the agenda as it contained information exempt from Access to Information requirements by virtue of paragraph 3 – information relating to the financial or business affairs of any particular person (including commercially sensitive information to the bidding companies).

RESOLVED that a Framework Agreement be awarded on a 4 year term in two Lots as follows:

i).         Lot 1: Managed Services be awarded on the basis of an overall framework to the recommended single supplier, as set out in the Part 2 Annex to the report submitted, to provide a managed service for the ongoing SAP maintenance and monitoring of the SAP system.

ii).        Lot 2: Application Development be awarded on the basis of a framework agreement with the appointment of the ten recommended suppliers, as set out in the Part 2 Annex to the report submitted, to provide SAP development services.

Reason for decision

To provide value for money and deliver both savings and efficiencies for the Council.

1.         The award of a 4 year framework agreement, and the immediate use of that framework to award a 3 year call-off contract, to a single supplier for SAP Managed Services with a 2 year optional extension to provide ongoing SAP maintenance and monitoring of the SAP system be approved.

2.         The award of 4 year Framework Agreement for SAP Application Development, to provide SAP development services, that will allow a range of suppliers to compete for projects as they arise through the use of mini-competitions be approved.

Reason for decision

To ensure the continuation of maintenance and support of SAP services via new shared contract arrangements with East Sussex. These arrangements provide value for money, deliver 38% savings on the current managed service contract, have a clearer specification and scope and offer further efficiencies through contract and supplier management.

The Cabinet agreed in December 2012, with the support of full Council in February 2013, the establishment of a partnership agreement between Surrey County Council and East Sussex County Council for the provision of a shared business support service. This included transactional support and IT hosting services. A procurement process to award a joint contract to provide SAP technical support to both councils had taken place to support this partnership. 

Both Surrey County Council and East Sussex County Council use SAP as their main transactional system, covering activities such as payroll, accounts payable & receivable and general ledger functionality. The joint procurement of SAP technical support had enabled the shared strategic vision for a single SAP system supporting both Councils to be achieved. The proposed contract arrangements delivered value for money, a 38% saving on the current managed service contract and the opportunity for further efficiencies.

The Cabinet noted that the details of the recommended contract awards and the cost savings to be delivered would be considered in the private part of the meeting (minute item 82/13).

RESOLVED that:

1.         The award of a 4 year framework agreement, and the immediate use of that framework to award a 3 year call-off contract, to a single supplier for SAP Managed Services with a 2 year optional extension to provide ongoing SAP maintenance and monitoring of the SAP system be approved.

2.         The award of 4 year Framework Agreement for SAP Application Development, to provide SAP development services, that will allow a range of suppliers to compete for projects as they arise through the use of mini-competitions be approved.

Reason for decision

To ensure the continuation of maintenance and support of SAP services via new shared contract arrangements with East Sussex. These arrangements provide value for money, deliver 38% savings on the current managed service contract, have a clearer specification and scope and offer further efficiencies through contract and supplier management.