Awarded contract

Corporate Finance Application Support & Cloud Hosting

  • DUDLEY MBC

F15: Voluntary ex ante transparency notice

Notice reference: 2024/S 000-008726

Published 18 March 2024, 6:08pm



Section one: Contracting authority/entity

one.1) Name and addresses

DUDLEY MBC

Council House,Priory Road

DUDLEY

DY19TD

Contact

John Bailey

Email

john.bailey@dudley.gov.uk

Country

United Kingdom

NUTS code

UKG36 - Dudley

Justification for not providing organisation identifier

Not on any register

Internet address(es)

Main address

https://www.dudley.gov.uk/residents/

one.4) Type of the contracting authority

Regional or local authority

one.5) Main activity

General public services


Section two: Object

two.1) Scope of the procurement

two.1.1) Title

Corporate Finance Application Support & Cloud Hosting

two.1.2) Main CPV code

  • 72260000 - Software-related services

two.1.3) Type of contract

Services

two.1.4) Short description

The Unit 4 Agresso (Business World Enterprise Resource Planning) application is the system used by the entire council for the management of its finances. The application is essential IT infrastructure as it provides accounting functionality which enables budget allocation and management across the whole council.

This award is lawful pursuant to Regulation 32 (2)(c) of the Public Contract Regulations 2015 insofar as is strictly necessary where, for reasons of extreme urgency brought about by events unforeseeable by the contracting authority, the time limits for the open or restricted procedures or competitive procedures with negotiation cannot be complied with, and in accordance with Regulation 32(2)(b)(ii) because competition is absent for technical reasons.

two.1.6) Information about lots

This contract is divided into lots: No

two.1.7) Total value of the procurement (excluding VAT)

Value excluding VAT: £958,355

two.2) Description

two.2.3) Place of performance

NUTS codes
  • UKG36 - Dudley

two.2.4) Description of the procurement

The Unit 4 Agresso (Business World Enterprise Resource Planning) application is the system used by the entire council for the management of its finances. The application is essential IT infrastructure as it provides accounting functionality which enables budget allocation and management across the whole council.

This award is lawful pursuant to Regulation 32 (2)(c) of the Public Contract Regulations 2015 insofar as is strictly necessary where, for reasons of extreme urgency brought about by events unforeseeable by the contracting authority, the time limits for the open or restricted procedures or competitive procedures with negotiation cannot be complied with, and in accordance with Regulation 32(2)(b)(ii) because competition is absent for technical reasons.

The following details the justification for this:

Unit 4 timing of announcements regarding product changes, coupled with a 12-month timeframe to switch solutions, creates the urgency of the situation. The system is an essential part of the councils IT infrastructure would have a detrimental effect of the running of the council services. Unit 4 have mandated the switch and withdrawn support of the on-premise solution. It will not be possible for the application and the data to be hosted on premise in the future due to the availability of support for third party hosting. The Council could not have foreseen these events and no other economic provider would be able to provide this service

At the present time it would be impossible for the council to procure and implement an alternative economic operator to provide this service. This is because, the supplier will no longer support the current on premise software beyond December 2024 and council risks a non-supported financial system. Therefore it is key that the council upgrades to the cloud software so stability of provision is ensured over the next few years to allow proper consideration of the above mentioned aspects.

two.2.11) Information about options

Options: No


Section four. Procedure

four.1) Description

four.1.1) Type of procedure

Negotiated without a prior call for competition

  • The works, supplies or services can be provided only by a particular economic operator for the following reason:
    • absence of competition for technical reasons
  • Extreme urgency brought about by events unforeseeable for the contracting authority

Explanation:

The Unit 4 Agresso (Business World Enterprise Resource Planning) application is the system used by the entire council for the management of its finances. The application is essential IT infrastructure as it provides accounting functionality which enables budget allocation and management across the whole council.

This award is lawful pursuant to Regulation 32 (2)(c) of the Public Contract Regulations 2015 insofar as is strictly necessary where, for reasons of extreme urgency brought about by events unforeseeable by the contracting authority, the time limits for the open or restricted procedures or competitive procedures with negotiation cannot be complied with, and in accordance with Regulation 32(2)(b)(ii) because competition is absent for technical reasons.

The following details the justification for this:

Unit 4 timing of announcements regarding product changes, coupled with a 12-month timeframe to switch solutions, creates the urgency of the situation. The system is an essential part of the councils IT infrastructure would have a detrimental effect of the running of the council services. Unit 4 have mandated the switch and withdrawn support of the on-premise solution. It will not be possible for the application and the data to be hosted on premise in the future due to the availability of support for third party hosting. The Council could not have foreseen these events and no other economic provider would be able to provide this service

At the present time it would be impossible for the council to procure and implement an alternative economic operator to provide this service. This is because, the supplier will no longer support the current on premise software beyond December 2024 and council risks a non-supported financial system. Therefore it is key that the council upgrades to the cloud software so stability of provision is ensured over the next few years to allow proper consideration of the above mentioned aspects.

four.1.8) Information about the Government Procurement Agreement (GPA)

The procurement is covered by the Government Procurement Agreement: Yes


Section five. Award of contract/concession

Title

Corporate Finance Application Support & Cloud Hosting

A contract/lot is awarded: Yes

five.2) Award of contract/concession

five.2.1) Date of conclusion of the contract

18 March 2024

five.2.2) Information about tenders

The contract has been awarded to a group of economic operators: No

five.2.3) Name and address of the contractor/concessionaire

Unit 4 Business Software Ltd

Bristol

BS1 9HS

Country

United Kingdom

NUTS code
  • UKG36 - Dudley
Companies House

01737985

The contractor/concessionaire is an SME

No

five.2.4) Information on value of contract/lot/concession (excluding VAT)

Initial estimated total value of the contract/lot/concession: £880,000

Total value of the contract/lot/concession: £958,355


Section six. Complementary information

six.4) Procedures for review

six.4.1) Review body

The High Court Royal Court of Justice

The Strand

London

WC2A 2LL

Country

United Kingdom