NORTH SOMERSET COUNCIL DECISION DECISION of DIRECTOR for CORPORATE SERVICES DIRECTORATE DECISION NO: CSDII4 Subject: Electronic

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20162017 scheme NORTH SOMERSET COUNCIL DECISION

DECISION OF DIRECTOR FOR CORPORATE SERVICES - DIRECTORATE

DECISION NO: CSDII4

Subject: Electronic Tendering System Award Decision

Background:

The Council has an ongoing requirement for an electronic tendering portal. The current procurement portal is provided by Due North purchased through a call off from an ESPO framework 774 in 2010. The Public Contract Regulations 2015 stipulate that all Local Authorities must advertise electronically their procurement requirements by April 2017, North Somerset Council have been actively doing so since 2010.

Decision:

To approve a four year contract for the provision of the E-tendering solution to be awarded to Due North. This is a direct award from ESPO Framework 774.

Reasons:

The proposal to award the Electronic Tendering solution to Due North is part of a collaborative arrangement with 28 south west authorities to use one portal www.supplyingthesouthwest.org.uk. See Appendix 1 for a list of current authorities using the portal.

During the period between March and June of 2016 an options appraisal was carried out by Dorset County Council on behalf of the 28 authorities. The options were:

• Make a direct award to the current supplier for 4 years from the current ESPO framework 774 along with current LA’sand with the ability for other authorities to join. • Make a further competition from existing ESPO framework 774 along with current LA’s. • Make a further competition from existing ESPO framework 774 as individual authorities. • Formally tender for a new F-Tendering system as a region • Each local authority to undertake own procurement process for individual procurement system 20162017 scheme As well as exploring each of the options above a desktop due diligence was also carried out, including:

• Review and analysis of costs from ESPO • Confirmation from ESPO on validity of Framework and Due North on it • Assessment of Framework documents, OJEU notice and supporting documents • Check of supplier financial status

Each authority was asked to feed into the overall options appraisal, which was then presented to the South West Procurement Board. The majority of local authorities chose to recommend a direct award to the incumbent as part of a regional collaboration. North Somerset Council indicated that they would be happy to go with whatever the majority decided.

Following the meeting of the South West Procurement Board in July 2016 it was agreed that there were both significant benefits of making a direct award to the incumbent Due North and that of making the award as part of a collaborative region.

The wider strategic benefit from doing this in a collaborative manner are:

• Supplier and market familiarisation of the use of a common system across the region • Opportunity to influence the system supplier through collective approach to supplier management • Overall network of subject matter experts familiar with a common system

In addition to the above benefits the consideration of awarding to Due North would allow:

• Readymade familiarisation of those already on Due North and the benefits of widespread knowledge and investment across SW Region of the product • Terms and conditions in line with industry expectations • The system, in general, fit for purpose and offering “value for money” • Compliant route to market (e.g. OJEU)

In addition the direct award would not require:

• Initial implementation costs • No training costs/no formal training required • No data migration required from existing system to new system • Exit strategy not required.

There is also the collaborative benefit of time spent around assessing the direct call off option as opposed to individual tendering by individual partner organisations, plus the individual Councils having more power as a collective if staying together rather than going out individually. Other Alternatives Considered:

As detailed above 20162017 scheme

Financial Implications:

As part of the collaborative agreement we have reduced the overall costs of the system from £12,000 pa to £9,000 pa (costs as defined in the ESPO framework 774) per authority.

The decision is within the relevant budget of the Directorate (including phased capital budget) and the relevant revenue & capital budget, and the Directorate’s overall budget is not projecting an overspend.

Implications for Future Years:

This cost is a fixed cost across the term of the contract. Therefore the whole life value is £36,000.

Signed: .. Director for Corporate Services,.. North Somerset Council Dated ./ ./

3 20162017 scheme

Appendix 1

Current authorities on supplyingthesouthwest.org.uk (as of April 2016)

Bath and North East Bournemouth Borough Christchurch & East Dorset Devon County Council Somerset Council Councils Dorset County Council East Devon Council Gloucestershire County Council Gloucester City Council Herefordshire Council Mendip District Council MidDevon District Council North Devon Council North Somerset Council Plymouth City Council Poole Borough Council Sedgemoor District Council Somerset County Council South Gloucestershire South Hams District Council Stroud District Council Council Swindon Borough Council Taunton Deane District Teignbridge District Council Torbay Council Council Torridge District Council West Devon Borough Weymouth and Portland Borough Wiltshire County Council Council; Council