Agenda and draft minutes
PDF 188 KBContact: Felicity Foley, Committees Manager 2919, Email: felicity.foley@haringey.gov.uk
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Apologies for absence To receive any apologies for absence. Minutes: There were no apologies for absence. |
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Declarations of interest A member with a disclosable pecuniary interest or a prejudicial interest in a matter who attends a meeting of the authority at which the matter is considered:
(i) must disclose the interest at the start of the meeting or when the interest becomes apparent, and (ii) may not participate in any discussion or vote on the matter and must withdraw from the meeting room.
A member who discloses at a meeting a disclosable pecuniary interest which is not registered in the Register of Members’ Interests or the subject of a pending notification must notify the Monitoring Officer of the interest within 28 days of the disclosure.
Disclosable pecuniary interests, personal interests and prejudicial interests are defined at Paragraphs 5-7 and Appendix A of the Members’ Code of Conduct Minutes: There were no declarations of interest. |
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SAP Hosted Managed Service Contract retrospective approval to extend and variation Minutes: The Cabinet Member for Finance and Local Investment considered the report which sought approval to vary and extend the SAP Hosted Managed Service Contract with Support Revolution Ltd., for a term of 1 year from the 1st June 2022 to the 31st May 23 as allowed under the GCloud 11 framework and to vary the contract to provide for an increased cost of up to £36,000.00 for increases in the hosting charges. The contract would facilitate the continuation of critical SAP support and hosting for the Finance, Payroll, HR and Procurement systems.
The Cabinet Member asked about the length of the contract. The Supplier and Contract Manager explained that the hosted managed service contract would be a three year contract with the option to extend by one year, replacing a two year contract with an option to extend by one year and then one further year. The new contract would also run more co-terminously, or more in line, with the related arrangements for the licence support contract; this would mean that it would be easier to manage any re-procurement exercises.
The Cabinet Member RESOLVED
1. To approve, in accordance with Contract Standing Order 10.02.1b), the extension and variation to the contract with Support Revolution Ltd for a SAP hosted managed service for a period of one year (to 31st May 2023) at a cost of £266,908.00 and at an additional cost for the hosting of up to £36,000.00 to enable Support Revolution to recover losses incurred in the past year. The hosting costs are variable and the additional monthly cost is approx. £4,700.00 per month for the remaining 4 months of the year in addition to £17,100.00 already incurred by the supplier from June.
2. To note that the year 4 extension option should not be exercised and a new 3+1 year contract should instead be procured, which will allow the supplier to resize the environment to ensure costs are aligned and also allow the hosted managed service and licence support contracts to be made almost co-terminous which will make any re-procurement exercise easier to manage.
Reasons for decision
The initial 2-year term of the SAP managed service contract expired on 31st May 2022 but the Council has continued to use the service and has incurred costs during the initial extension period. It was believed that the original approval for a 2+1+1 contract along with approval for the overall financial cost for the four years provided authorisation for this continuation, however it has been clarified that a specific additional approval is needed to confirm authorisation for this continued use.
The original contract had not been sized correctly and had been running at a loss for Support Revolution over the last 3 years and with the turbulence in the market they find they are unable to sustain the business further without some adjustment to current arrangements. As a result, although there is still an option under the existing contract to do an extension contract for ... view the full minutes text for item 3. |