2.1 the Following Summary Notes Outline the Procurement Process

Agenda Item: 14 Paper No: CM/06/13/13

MEETING: CQC BOARD MEETING

DATE: 31 JULY 2013

TITLE OF PAPER: CRM HOSTING & APPLICATION SUPPORT CONTRACT AWARD

SUMMARY:

The CRM hosting and application support contract expries on 30 September 2013. Following a competitive procurement via the G Cloud government framework Computatcenter were selected as the preferred supplier for these services from 1 October 2013.

Information Systems Development (ISD) & Information Communications Technology (ICT) are seeking approval to award the contract to Computacenter Services & Solutions for two years commencing 1 October 2013 to 30 September 2015. The contract value over two years for hosting and support is £1.14M excluding VAT.

RECOMMENDED ACTION:

The Board is asked to APPROVE the CRM hosting & application support contract award to Computacenter.

Executive Decision/ Executive and Board Executive and Board Executive and Board Board for decision shared decision discussion/Board information decision The Executive Team has The Board has been This is a shared decision This is for when it is made a decision and the consulted in order for the between the Executive clear that it is a specific Board has been Executive Team to make Team and Board Board decision (under informed a decision statutory and legal requirements) ie. signing off the annual accounts * Check box as required

LEAD DIRECTOR: John Lappin AUTHOR: Martin Pitcher/Fahrel Faulkner DIRECTORATE Finance & Corporate Services DATE: 22 July 2013 SUPPORTING PAPERS: None

of 5 Agenda Item: 14 Paper No: CM/06/13/13

GOVERNANCE

AUDIT TRAIL: The initiation of a procurement project was approved by Corporate Change Committee on 14 December 2012.

The commencement of procurement activity for CRM application support, hosting and development services via the G Cloud framework was approved by IC on 15 January 2013.

The recommendation to select Computacenter as the preferred supplier was approved by Investment Committee on 3 June 2013

LINK TO STRATEGIC CRM and the data warehouse underpin the following OBJECTIVES AND priorities set out in the CQC business plan: BUSINESS PLAN 1. Better use of information and inspection

2. Working better with our partners in the health and social care system

3. Building better relationships with the public

4. Building relationships with those we regulate

5. Strengthening how we deliver our responsibilities in terms of mental health and mental capacity

6. Building a high-performing organisation

CQC’s Customer Relationship Management (CRM) system is the main technology used to manage information in support of CQC’s regulatory business processes (registration, compliance and enforcement).

The CRM system, which is a software and hardware package, is used to organise, integrate, record and coordinate CQC’s relationships with the bodies that we regulate and other key stakeholders in the health and social care sectors.

IMPLICATIONS FOR NCSC NCSC are significant users of CRM and the data warehouse. Along with Operations their business processes are highly integrated into and dependent on the system and if this procurement does not go ahead, they will lose the systems they are dependent on. However this project has no implications for NCSC over and above those that impact the rest of the CRM user community.

FINANCIAL IMPACT: The cost of CRM application hosting and support services is £1.14M excluding VAT over two years. The contract was awarded on the basis of most economically advantageous tender

RISK IMPACT: The risk of awarding the contract to Computacenter is low:  They are the incumbent supplier  Their bid was not only the cheapest but provided the best fit to requirements  Computacenter have a proven track record in suppling these services to CQC  There is no transition risk because infrastructure and knowledge do not need to be transferred to a new supplier  The short term nature of G Cloud services contracts avoiding locking CQC into a long term contract should requirements change

REPUTATION IMPACT: None

LEGAL IMPLICATIONS: CQC will sign a 24 month contract using standard G Cloud Terms and Conditions with Computacenter.

HEALTHWATCH IMPACT: Healthwatch England use CRM to support their operational processes including management of contacts. However this project has no implications for Healthwatch over and above those that impact the rest of the CRM user community.

EQUALITY IMPACT Equality impact assessement completed in February ASSESSMENT: 2013 and submitted to Equality and Human Rights manager, staff disability ntwork and staff forum.

1. Background

1.1 The Registration and Compliance business process within CQC is underpinned by the Siebel CRM system hosted and managed by Computacenter. The contract was originally let by the Healthcare Commission in 2005. It was extended by one year in late 2010 and expired on 30 September 2011. The contract was re-procured and a one + one year contract was awarded to Computacenter which is due to expire 30th September 2013.

1.2 This paper seeks approval to award the CRM hosting and application support contract to Computacenter from Chief Executive and Board as stated in the scheme of delegation for contracts between the value of £1m to £5m.

1.3 This is the final stage of the procurement exercise which commenced on 19 March 2013 following approval from Corporate Change Committee and the Investment Committee.

2. Executive Summary

2.1 The following summary notes outline the procurement process:

 The existing contract is with Computacenter and is due to expire on 30 September 2013.  The initiation of the procurement project was approved by Corporate Change Committee on 14 December 2012.  The procurement was conducted under the G Cloud II framework, a Government mandated framework initiative and part of the Government ICT Strategy.  A total of six G Cloud suppliers were identified as providing the services required. An Invitation to Tender (ITT) was issued on 19/03/2013. Three of the potential suppliers submitted bids. The bidders were Atos, CSC and Computacenter.  The bids have been through a process that assessed their relative merits against the published evaluation criteria. The evaluation team included representatives from Operations, Intelligence, Procurement and ISD / ICT.  During May 2013 each supplier presented their proposed solution to the evaluation team. This was their final opportunity to pitch their proposed solution to the Commission.  A final assessment of the bids was then carried out and a preferred supplier selected.  Computacenter is the recommended preferred bidder and a paper was submitted to the IC on 3 June 2013. It was accompanied by the final business case which set out the whole life costs of the contract and an tender evaluation report.  Unsuccessful bidders were fully debriefed and a compulsory ten day standstill process was initiated to allow bidders to query the decision.  The Investment Committee and DH approved the CRM business case June 2013.

3 Conclusion

3.1 CQC’s Customer Relationship Management (CRM) system is the main technology used to manage information in support of CQC’s registration and compliance business processes.

3.2 The CRM system, which is a software and hardware package, is used to organise, integrate, record and coordinate CQC’s relationships with the bodies that we regulate and other key stakeholders in the health and social care sectors.

3.3 The procurement process was conducted fairly and in line with the G Cloud guidance.

3.2 ISD and ICT are seeking approval to award the contract to Computacenter Services & Solutions for two years commencing 1 October 2013 to 30 September 2015. The contract value over two years for hosting and support is £1.14M excluding VAT.

4. Next Steps

4.1Subject to the approval the project team will:

 Submit an early draft of the contract to the CRM project delivery Team for review.  Finalise the contract by 5/08/2013

Name: Martin Pitcher Title: Head of Live ICT Services

Date 22 July 2013