CWC21186 - Enterprise Resource Planning Solution

Concepts

• wolverhampton
• software package
• erp solution
• enterprise resource planning solution
• human resources
• cwc21186 - enterprise resource planning solution
• a cloud-based enterprise resource planning solution
• the erp solution
• enterprise
• resource

Location

Wolverhampton

Description

Wolverhampton City Council has awarded 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, Income Management and the General Ledger for use by Wolverhampton City Council and Wolverhampton Homes, Schools, West Midlands Pension Fund, and the Local Government Pension Scheme. The contract is for a period of 4 years with an option to extend annually for up to three years (1+1+1). The total value of the proposed contract is £4,545,615.

Total Quantity or Scope

Wolverhampton City Council has awarded 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 Wolverhampton City Council and Wolverhampton Homes, Schools, West Midlands Pension Fund, and the Local Government Pension Scheme. The proposed contract is for a period of 4 years with an option to extend annually for up to three years (1+1+1). The total value of the proposed contract is £4,545,615. The Council considered 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.

Award Detail

Award Criteria

CPV Codes

• 48000000 - Software package and information systems

Indicators

• Award on basis of price and quality.

Legal Justification

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 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.