Section one: Contracting authority/entity
one.1) Name and addresses
Redcar & Cleveland Borough Council
Redcar & Cleveland House, Kirkleatham Street
REDCAR
TS101RT
Contact
Debbie Seaman
debbie.seaman@redcar-cleveland.gov.uk
Country
United Kingdom
Region code
UKC12 - South Teesside
Justification for not providing organisation identifier
Not on any register
Internet address(es)
Main address
Buyer's address
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
Enterprise Resource Planning (ERP) Solution
two.1.2) Main CPV code
- 48000000 - Software package and information systems
two.1.3) Type of contract
Supplies
two.1.4) Short description
This notice sets out Redcar & Cleveland Borough Council's intention to award a contract to Unit4 Business Software Ltd for the provision of a cloud-based Enterprise Resource Planning
Solution (ERP Solution). The ERP Solution will include Human Resources, Payroll, Procure to Pay for use by Redcar & Cleveland Borough Council .
The proposed contract is for a period of 3 years. The total value of the proposed contract is £627,631.41.
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: £627,631.41
two.2) Description
two.2.3) Place of performance
NUTS codes
- UKC - North East (England)
two.2.4) Description of the procurement
This notice sets out Redcar & Cleveland Borough Council's intention to award a contract to Unit4 Business Software Limited for the provision of a cloud-based Enterprise Resource Planning Solution. The ERP Solution will include Human Resources, Payroll, Procure to Pay, Income Management and the General Ledger for use by Redcar & Cleveland Borough Council.
The proposed contract is for a period of 3 years. The total value of the proposed contract is £627,631.41.
The Council considers that the award of the contract is permitted under Regulation 32(2)(c) of the Public Contract Regulations 2015 (the PCR 2015). Regulation 32 of the PCR 2015 allows contracting authorities to award a public contract by a negotiated procedure without prior publication. Regulation 32(2)(c) permits the award of a public contract 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.
The Council considers that due to Unit4's unforeseeable decision on 17 October 2023 to remove support for the Council's on-premises solution from 31 December 2024, the Council does not have sufficient time to conduct market tests, complete a full procurement exercise and implement a new solution before 31 December 2024. The award of a contract pursuant to Regulation 32(2)(c) is therefore strictly necessary, for reasons of extreme urgency, to ensure business continuity for the Council. Further details are set out in Section IV below.
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
- Extreme urgency brought about by events unforeseeable for the contracting authority
Explanation:
The Council considers that the award of the contract is permitted under Regulation 32(2)(c) of the PCR 2015. Regulation 32 of the PCR 2015 allows contracting authorities to award a public contract by a negotiated procedure without prior publication. Regulation 32(2)(c) permits the award of a public contract 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. The Council considers that its reliance on Regulation 32(2)(c) is justified for the following reasons:
The Council has a perpetual licence for the Unit4 Agresso Enterprise Resource and Planning Solution and receives annual maintenance and support from Unit4 Business Software Limited (Unit4). The data is stored on the Council's Azure infrastructure, which is an on premises model.
On 17 October 2023 Unit4 announced that it would no longer provide maintenance and support services for perpetual licences or any on premises solutions post 31 December 2024, meaning that the Council would have to migrate the existing solution to Unit4's own cloud services and adopt a subscription-based licence model.
The ERP solution is an essential and integral part of the Council's financial systems. Unit4's announcement that it would cease to provide maintenance and support services or any on premises solutions post 31 December 2024 was not foreseeable by the Council and has given rise to a situation of extreme urgency in which the Council must ensure that its ERP systems do not become unsupported post 31 December 2024.
It is the Council's position that the time period provided by Unit4 before the ERP system becomes unsupported is insufficient to permit the Council to undertake the intricate process of compiling detailed business requirements for a new solution, perform an exhaustive market analysis, execute a comprehensive open procurement exercise, and deploy a new ERP system prior to 31 December 2024. The decision to award a contract pursuant to Unit4 Page 6 to 7 pursuant to Regulation 32(2)(c) is therefore considered to be strictly necessary in a situation of extreme urgency, to ensure business continuity for the Council. This approach will also provide the Council with the necessary time to evaluate all potential options and ensure that any future procurement decisions align with the Council's best interests and value for money obligations.
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
A contract/lot is awarded: Yes
five.2) Award of contract/concession
five.2.1) Date of conclusion of the contract
7 August 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
c/o DAC Beachcroft LLP, Portwall Place
Bristol
BS1 9HS
Country
United Kingdom
NUTS code
- UKC - North East (England)
Companies House
01737985
The contractor/concessionaire is an SME
No
five.2.4) Information on value of contract/lot/concession (excluding VAT)
Total value of the contract/lot/concession: £627,631.41
Section six. Complementary information
six.4) Procedures for review
six.4.1) Review body
Redcar & Cleveland Borough Council
Redcar & Cleveland House, Kirkleatham Street
Redcar
TS10 1RT
Country
United Kingdom