Archived decisions

HAMPSHIRE COUNTY COUNCIL

Decision Report :

EXECUTIVE SUMMARY

Approval to tender for the supply of network and telecommunications services to continue to support and manage the County Council's wide area network (the Hampshire Public Services network, HPSN) was given on 6 March 2008 by Executive Member Policy and Resources. That report highlighted the intention to procure and subsequently manage the contract in partnership with other Hampshire and Isle of Wight authorities and the Hampshire Fire and Rescue Service. A joint procurement has been underway and will reach its conclusion in June 2009. The new service is called HPSN2.

Governance arrangements for the management of the contract have been developed and agreed by the HPSN2 Procurement Board, endorsed by Hampshire County Council and approved by Executive Member Policy and Resources on 29 January 2009.

The new contract will replace services currently provided by Unisys (current Corporate HPSN), Synetrix (schools HPSN) and other telecommunications services and will include an order for shared infrastructure to support the HIOWA partnership procurement of HPSN2.

This procurement is the first project to be managed under the terms of the Information Management and Technology (IMT) Partnership Agreement, which was the subject of a briefing report to the Executive Member Policy and Resources on 28 January 2008. The procurement has been a rigorous process, following strict procedures and overseen by Legal Services.

There are currently 4 contractors left in the process to be taken to the evaluation stage.

The evaluation teams, which include County Council and other representatives from across the HIOWA partnership, will recommend a preferred supplier based on published criteria, including value for money and quality. The recommended supplier will then be approved by the HPSN2 Procurement Board, HPSN2 Project Steering Group and Hampshire County Council, as lead authority, in line with the IMT Partnership Agreement.

This report seeks delegated authority for the Chief Executive and the County Treasurer in consultation with the Leader to enter into a framework contract on behalf of the County Council and for the Chief Executive and County Treasurer to place an initial order with the successful contractor on behalf of the County Council and HIOWA, within the approved financial framework for the contract. Delegated authority is required so that the planning and rollout can commence quickly to ensure that no delays impact the cutover date from the existing contract.

1 Summary of Decision Areas:

1.1. HPSN2 Framework Contract. Hampshire County Council, as lead authority will award the HPSN2 Framework Contract to the successful contractor on behalf of the Partnership. Delegated authority sought for the Chief Executive and County Treasurer in consultation with the Leader to award the contract to the successful contractor on behalf of the County Council and HIOWA.

1.2 Ordering through the HPSN2 Framework Contract. As lead authority the County Council will be responsible for ordering and paying the Contractor for shared infrastructure and recovering a portion of this cost from participating partners. Delegated authority is sought for the Chief Executive and County Treasurer to place an initial order for the services required by Hampshire County Council.

2 Issues Covered in Report:

2.1 Procurement Process. The Negotiated Procedure is being followed for the Procurement, as recommended by and overseen by Legal Services and County Supplies. There are 4 contractors in the final negotiations stage to be taken to the evaluation of Best and Final Offer stage. Evaluations are expected to complete in April 2009 with contract awarded in June 2009.

2.2 Timescales. The existing contract to supply Corporate HPSN will end in November 2009, and the Schools HPSN which is a phased contract ends between Spring 2009 and September 2010. It is necessary to seek approval for delegated authority to award the Framework Agreement once the preferred contractor has been recommended so that the planning and rollout can commence swiftly to achieve the November 2009 deadline.

There is a risk that the rollout will not be completed by November 2009, however a mitigation strategy has been put in place for the transition which will reduce the level of impact. The details of the transition will vary for each of the contractors, however the overall strategy is to novate all leased lines and transfer ownership of existing equipment by November 2009.

2.3 HPSN2 Governance. The governance arrangements for the management of the contract have been developed and agreed by the HPSN2 Procurement Board, endorsed by Hampshire County Council and approved by Executive Member Policy and Resources on 29 January 2009. The Council is the Lead Authority in the Partnership and as such must sign the Framework Agreement with the successful Contractor, and place the initial orders for shared infrastructure and Hampshire County Council services. Delegated authority is sought for these purposes.

There is a risk that the County Council will be left with the role of managing a shared infrastructure with reduced benefit if partners withdraw from the contract. The financial risk arising from this is mitigated by the requirement on the Contractor to continue to deliver value for money.

2 Recommendations:

It is recommended that:

The Chief Executive and the County Treasurer in consultation with the Leader be authorised to award the HPSN contract on behalf of the County Council and that the Chief Executive and County Treasurer be authorised to place an initial order through the Framework contract and any other orders against the framework, subject to any such order being within the approved financial framework for the contract.

MAIN REPORT

1 Contextual Information:

1.1 Background

1.1.1 The current Hampshire Public Services Network (HPSN) contract with Unisys delivers the Corporate data and voice network to support Hantsnet and telephone services. This contract ends in November 2009.

1.1.2 The contract with Synetrix to deliver Schools HPSN has a phased contact end, between Spring 2009 and September 2010.

1.1.3 An earlier paper to the Executive Member Policy and Resources dated 6 March 2008 gained approval to tender for the supply of network and telecommunications services to continue to support and manage the County Council's wide network (HPSN).

1.1.4 A joint procurement involving Hampshire and Isle of Wight authorities, including schools, and Hampshire Fire and Rescue Service has been underway and will reach its conclusion in June 2009. As the potential school HPSN2 estate comprises over 600 establishments and the aggregated bandwidth demand of these schools make them the largest element of HPSN2 it therefore essential that their current needs and future requirements are fully implemented in the new HPSN2 contract.

1.1.5 This procurement is the first project to be managed under the terms of the Information Management and Technology (IMT) Partnership Agreement, the subject of an earlier briefing report to the Executive Member Policy and Resources dated 28 January 2008.

1.1.6 The County Council is the lead authority in the Partnership, as approved by Executive Member Policy and Resources on 29 January 2009, and as such is required to sign the HPSN2 Framework Contract with the successful Contractor on behalf of the Partnership.

1.1.7 The County Council will be responsible for ordering and paying the HPSN2 Contractor for shared infrastructure and recovering a portion of this cost from participating partners. Therefore the County Council will place the initial order, through the Framework Agreement, to replace services currently provided by Unisys (current Corporate HPSN), and subsequently to replace Schools HPSN, in line with contract end dates. This will include an order for shared infrastructure to support the HIOWA partnership procurement of HPSN.

1.1.8 Risks are being effectively managed within the project by IT Services working with County Supplies and Legal Services.

1.1 Procurement Process

1.2.1 The European Union Negotiated Procedure is being followed for the Procurement, as recommended by Legal Services and County Supplies, and in line with Standing Orders. This procedure was chosen because it reduces the cost and complexity for the partnership and allows the partnership to negotiate the terms of the contract within strict guidelines prior to awarding the contract.

1.1.1 18 contractors responded to the pre-qualification questionnaire (PQQ), where they were evaluated against high level financial and legal criteria. 5 contractors were successful and progressed to the long list evaluation. Unfortunately one of the contractors withdrew from the procurement at this stage leaving 4 remaining.

1.1.2 A decision was taken by the HPSN2 Procurement Board to enter into detailed negotiations with these 4 contractors and issue them an Invitation to Negotiate (ITN). The detailed negotiations covered four areas, Technical, Service Management, Legal and Commercial. The negotiations will come to a conclusion in March 2009, with bidders submitting their Best and Final Offers (BAFOs). The contract is due to be awarded in June 2009.

1.1.3 Hampshire County Council and partners, including schools, were represented in the negotiating teams, and all had an opportunity to shape the contract.

1.1.4 The evaluation teams, made up of representatives from across the partnership, will evaluate the BAFOs and recommend a preferred supplier. This recommendation will then be approved by the HPSN2 Procurement Board, the HPSN2 Project Steering Group and Hampshire County Council, as lead authority, inline with the Partnership Agreement.

1.1.5 The procurement is proving to be a very successful process, and an excellent example of joint working across the Council between IT Services, Legal Services and County Supplies, and of working with the HIOWA partnership.

1 Key Issues:

1.1 Timescales

2.1.1 The existing contract to supply Corporate HPSN will end in November 2009, and the Schools HPSN contract will end between Spring 2009 and September 2010.

2.1.2 The HPSN2 contract is planned to be awarded in early June 2009, and it is anticipated that the chosen supplier will want to complete due diligence, therefore not starting rollout until at least late June 2009.

2.1.3 Delegated authority to sign the HPSN2 Framework Contract with the successful Contractor is required in April 2009, so that the Contract can be signed in June 2009 and allow 6 months for due diligence, planning and rollout to be completed by November 2009.

2.1.4 There is a risk that the rollout will not complete in the 6 months available for Corporate HPSN, however there is a transition strategy in place to mitigate this which will reduce the level of impact. Although the details of the transition will vary for each of the contractors, the overall strategy is to novate all leased lines and transfer ownership of all existing equipment by November 2009. This process is anticipated to take 4 months which allows 2 months contingency.

2.1.5 Schools transition will take place to provide Best Value and meet the needs of schools.

2.2 HPSN2 Governance

2.2.1 The governance arrangements for the management of the contract have been developed and agreed by the HPSN2 Procurement Board, endorsed by Hampshire County Council and approved by Executive Member Policy and Resources on 29 January 2009.

2.1.2 A management structure has been agreed, as detailed in the report dated 29 January 2009, to manage the Framework Contract.

2.1.3 Outside of the Partnership governance arrangements, a County Council Board (chaired by the Head of IT) will oversee the County's interests and these will be represented on the HPSN2 Management Partnership Board by a member of ITMT.

2.1.4 The County Council will be responsible for ordering and paying the HPSN2 Contractor for shared infrastructure and recovering a portion of this cost from participating partners. Therefore the County Council will place the initial order through the Framework Contract to replace existing contracts. This will include an order for shared infrastructure to support the HIOWA partnership procurement of HPSN2.

2.1.5 Additional services facilitated on the core infrastructure required by partners would be the responsibility of the requesting partner, and as such the liability would be with that partner.

2.1.6 Where a partner requires a service that means a change to the core infrastructure, approval will be required by the HPSN2 Management Project Board (HPSN2 Management Authority) to agree approach and funding.

2.1.7 As stated in the report dated 29 January 2009, there is a risk to the County Council that one or more of the partners withdraw from the Contract, leaving the County Council with the role of managing a shared infrastructure with reduced benefit. The financial risk arising from partners withdrawing is mitigated by the requirement on the Contractor to continue to deliver value for money (which is provisioned in the Contract through benchmarking), In addition to this, the initial core infrastructure will be designed to meet the expected level of services and can be scaled according to demand.

2 Conclusions:

2.1 The joint procurement process is well underway and the risks highlighted are being effectively managed. Clear governance and decision-making processes have been put in place and agreed with all partners. There is a robust audit trail through the procurement process and full legal oversight of all planned contractual and financial implications.

2.2 In order to ensure that we can rapidly move to the next phase once the supplier has been chosen, advance approval of delegated authority is requested to ensure that no delays impact the cutover date of November 2009.

3 Recommendations:

3.1 Please see Executive Summary for recommendations

CORPORATE OR LEGAL INFORMATION: