Award

Unit 4 SAAS ERP - West of England

  • Delt Shared Services Limited

F15: Voluntary ex ante transparency notice

Notice identifier: 2024/S 000-040868

Procurement identifier (OCID): ocds-h6vhtk-04c95c

Published 18 December 2024, 8:02pm



Section one: Contracting authority/entity

one.1) Name and addresses

Delt Shared Services Limited

Building 2, Derriford Business Park

Plymouth

PL6 5QZ

Contact

Mrs Briony Archer-Davey

Email

briony.archer@deltservices.co.uk

Telephone

+44 1752581844

Country

United Kingdom

Region code

UKK - South West (England)

Internet address(es)

Main address

https://deltservices.com/

Buyer's address

https://deltservices.com/

one.6) Main activity

Other activity

Shared Service


Section two: Object

two.1) Scope of the procurement

two.1.1) Title

Unit 4 SAAS ERP - West of England

Reference number

DN756573

two.1.2) Main CPV code

  • 48000000 - Software package and information systems

two.1.3) Type of contract

Supplies

two.1.4) Short description

Delt Shared Services Ltd, are procuring this service for North Somerset Council, who are providing IT services for the West of England Combined Authority. Delt intend to award a contract for the provision of a cloud-based Enterprise Resource Planning (ERP) solution for the stated parties. This procurement is necessitated by the withdrawal of support for the West of England Combined Authority’s current on-premises ERP system. The new solution will encompass core functionalities including Human Resources, Payroll, Procure to Pay, Income Management, and the General Ledger, primarily for use by the West of England Combined Authority.

The proposed contract is for a period of 3 years with an option to extend annually for up to two years (1+1). The total value of the proposed contract is £351,246.28

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: £351,246.28

two.2) Description

two.2.3) Place of performance

NUTS codes
  • UKK - South West (England)

two.2.4) Description of the procurement

Delt Shared Services Ltd, are procuring this service for North Somerset Council, who are providing IT services for the West of England Combined Authority. Delt intends to award a contract for the provision of a cloud-based Enterprise Resource Planning (ERP) solution for the stated parties. This procurement is necessitated by the withdrawal of support for the West of England Combined Authority’s current on-premises ERP system. The new solution will encompass core functionalities including Human Resources, Payroll, Procure to Pay, Income Management, and the General Ledger, primarily for use by the West of England Combined Authority.

The proposed contract is for a period of 3 years with an option to extend annually for up to two years (1+1). The total value of the proposed contract is £351,246.28

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.

It is considered that due to Unit4’s unforeseeable decision on 17 October 2023 to remove support for the West of England Combined Authority’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

two.2.13) Information about European Union Funds

The procurement is related to a project and/or programme financed by European Union funds: 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 entity
  • Additional deliveries by the original supplier

Explanation:

It is considered 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. Considering that its reliance on Regulation 32(2)(c) is justified for the following reasons:

The West of England Combined Authority 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 West of England Combined Authority 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 West of England Combined Authority’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 West of England Combined Authority and has given rise to a situation of extreme urgency they must ensure that its ERP systems do not become unsupported post 31 December 2024.

It is the position that the time period provided by Unit4 before the ERP system becomes unsupported is insufficient to permit the West of England Combined Authority 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 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 necessary time to evaluate all potential options and ensure that any future procurement decisions align with the West of England Combined Authority’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: No


Section five. Award of contract/concession

Contract No

CNTR0011393

A contract/lot is awarded: Yes

five.2) Award of contract/concession

five.2.1) Date of conclusion of the contract

18 December 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

Delt Shared Services Ltd

Plymouth

Country

United Kingdom

NUTS code
  • UKK - South West (England)
Internet address

https://deltservices.com/

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: £351,246.28


Section six. Complementary information

six.4) Procedures for review

six.4.1) Review body

Delt Shared Services Ltd

Plymouth

Country

United Kingdom

Internet address

https://deltservices.com/