Issue - meetings

[Report of the Director for Customers, Transformation and Resources. To be introduced by the Cabinet Member for Planning and Corporate Services.]

The contract was originally procured from a part UK based and Indian company.  They had two UK companies and they are consolidating into one.  The main part of the contract was terminated but we are still using their scanning services.

The Cabinet Member for Corporate Services and Planning introduced the report which sought to novate the contract for the SAP managed service to replace the company serving as the Council’s main contractor by another company within the HCL group. This would allow for a continuation of the service for scanning services only until 31/5/21 when the contract expired.

 In response to a question from Cllr Cawley – Harrison,

• Assurance was provided that the costs of the scanning services was less than £20k a year and it was due to this service being part of a larger contract of over £500k, that this required Cabinet approval. The Council were moving away from the contract with HCL and would be making a saving on scanning services going forward.

• It was clarified that the scanning services were needed to process invoices received by the Council and these can come in many formats and through email or by post. There can be thousands of records received which need to be electronically recorded and passed through the SAP finance system.

RESOLVED

1. To grant fresh approval for the novation of the SAP Managed Service Contract from Axon Solutions Ltd T/A HCL Axon to HCL Technologies UK Ltd under Contract Standing Orders 10.03 and 9.07.1(d).

2. To note that the contract value over the life of the contract, from the contract start on 16/9/13 until the contract’s current scanning service expires on 31/5/21, is £4,321,781.00.

Reasons for decision

Cabinet was informed in Nov. 2019 that Axon Solutions T/A HCL Axon was being wound up as part of a restructure to reduce a complicated structure of the European companies within the HCL group and it would no longer exist. Axon Solutions T/A HCL Axon was proposing to novate the contract from them to another company within the HCL group, HCL Technologies UK Ltd, to allow for a continuation of the service provided. HCL’s parent company in India, HCL Technologies Ltd was, and would remain after the proposed contract novation, a co-contractor with the relevant HCL subsidiary. Cabinet was asked to approve the novation and did. However, the restructure was delayed and in the meanwhile the contract was extended, varied and the value increased by £197,334.00. The HCL group now wish to proceed. However, because of the change in the scope and value of the contract it is thought that fresh approval should be submitted as they will remain a supplier until May 2021.

Alternative options considered

Axon Solutions Ltd said that we are required to novate the contract as they are winding down the company due to a restructure.

Contract termination was considered but were unable to terminate all services as we require their scanning services until the contract end.