Issue - meetings

Report of the Corporate Director of Finance and Resources. To be presented by the Cabinet Member for Finance and Corporate

DECLARATIONS OF INTEREST MADE FOR THIS ITEM:

None

RESOLVED:

That Cabinet, after considering the information within the exempt appendices:

1.    Approved the Full Business Case for the replacement of the Council’s Enterprise Resource Planning (ERP) system, including the procurement of an integrated ERP solution, its implementation, and, if required, business integration and support services.

2.    Approved the commencement of two linked procurement activities in accordance with Contract Standing Order (CSO) 2.01(b), comprising:

3.    Delegated authority to decide whether to proceed with the procurement of Business Integration services to the Corporate Director of Finance and Resources, in consultation with the Cabinet Member for Finance and Corporate Services.

4. Approved a waiver of Contract Standing Order 6.03, pursuant to CSO 18.01.4(a), allowing the procurement to proceed with a Social Value weighting of 5%.
   
   
5. Approved the transformation element of the proposed budget, including implementation, stabilisation, licensing, support and associated costs, to be funded through the Flexible Use of Capital Receipts programme, subject to Full Council approval of the additional allocation required.
   
   
6. Noted that an increase in the revenue budget would be required when the new system became operational in July 2028. This would be considered through the 2028/29 budget-setting process and Medium-Term Financial Strategy.
   
   
7. Noted that:

·       the cost estimates were indicative and had been developed using market engagement, benchmarking, risk allowances and contingency provisions;

·       final contract values and the recommended supplier or suppliers would be subject to a future Cabinet decision; and

·       no cashable savings had been assumed at this stage, with potential benefits to be further assessed during procurement and implementation.

Reasons for the decision

The existing SAP ECC platform was approaching the end of mainstream support in December 2027. Following that date, the Council would have become increasingly dependent on third-party support arrangements and faced heightened risks relating to security, payroll operations, legislative compliance, system resilience and audit assurance.

The current system was also limiting operational efficiency. Core Finance, Procurement, Human Resources and Payroll processes relied on manual workarounds, offline spreadsheets, duplicate data entry and fragmented workflows. This increased the risk of errors, reduced efficiency and limited access to timely and reliable management information.

The recommended option was supported by a structured assessment process. The Council undertook market engagement, considered five options, and evaluated them against agreed criteria. Delivery approaches were tested through a Request for Information process and supported by a ten-year total cost of ownership assessment.

The Council was required to procure the technology, implementation, support and associated services in accordance with the Procurement Act 2023, Contract Standing Orders and relevant procurement legislation. The proposed route to market was a further competition through the Crown Commercial Service Back Office Software 2 (BOS2) framework.

The Council confirmed that it was an eligible contracting authority under the  ...  view the full decision text for item 10.