Decision details

The Cabinet considered the report of the Head of Corporate Resources which provided details of proposals for the implementation of a strategic approach to contract management for all ICT contracts held by the local authority. This approach would enable the Council to gain a full understanding of all contracts that have been inherited by the Council following the end of the Arvato contract including, suppliers, terms and conditions, pricing and how critical services are supported; ensure that robust contracts are in place between the authority and vendors; rationalise contracts in line with business requirements; and manage risk in relation to business continuity

Decision Made: That

(1)      the strategic approach detailed within this report be approved; and

(2)      the Head of Corporate Resources, be granted delegated authority in consultation with the Cabinet Member – Regulatory, Compliance and Corporate Services to implement the contract management strategy in accordance with the Councils Contract procedure rules

and appropriate legislation.

Reasons for Decision:

On 30 September 2018, the Council’s 10-year partnership with Arvato for provision of a range of services came to an end. Several transactional services returned to the Council for ongoing service delivery and an element of ICT service delivery was the subject of an OJEU compliant procurement. This contract was awarded to Agilisys for a 5-year term, with an option to extend for a further two years. During the period of the partnership, Arvato had been contracted to provide a supplier contracts management function which sat within the remit of ICT services. This function had not been transferred to the Council’s new external ICT provider, Agilisys, and became the responsibility of the Council with effect from 1 October 2018. As part of the exit arrangements with Arvato, work was undertaken to start the process of understanding and reviewing all contract arrangements, but it is only since the function had transferred to the Council that work could truly commence.

As responsibility for supplier contract management had now returned to the Council a strategic approach was required to complete a systematic review of all contracts and licences that considers business requirements, the most economically advantageous approach and procurement legislation. The stability of the Council’s ICT infrastructure is key in maintaining business continuity.

Alternative Options Considered and Rejected:

The authority has inherited a function that has been delivered as a managed service by another provider for ten years, and as such there is an opportunity to review all existing contracts in place, to ensure the provision of best value services to both internal and external customers. Given the volume of work required it is felt that there is no option but to complete a systematic review, based on the strategy outlined in this paper.