Agenda item

The report sought to have the current EA21 call-off contract with XMA Ltd for the supply of laptops and accessories extended by 12 months and a key decision to approve an increase in spend under the contract above £500,000.00.

The Cabinet Member was assured that value for money within the contract was checked at regular intervals.

The Cabinet Member RESOLVED

1. To approve an increase in the maximum value under the initial 2- year term of the Council’s EA21 contract with XMA Ltd for laptops and accessories (the EA21 contract), which was called off from CCS Framework RM6068, from £500,000.00 to £572,600.00 to cover an existing overspend to date as well as to cover anticipated spend up to the expiry of the initial term in December 2023;

2. To approve pursuant to Contract Standing Order (CSO) 10.02.1b), a first extension to the EA21 contract for a period of 12 months from 10December 2023 to 9 December 2024 at a maximum value of £475,440.00 for the first extension period.

3. To note that if the Council’s future digital roadmap aligns to new laptop devices, Digital Services may approach Cabinet in 2024 to seek further approval to extend the EA21 contract for a final 12-month term until 9 December 2025 and that a maximum value of £475,440.00 was currently envisaged for that extension period.

Reasons for decision

Laptops were an essential tool used by Haringey staff and integral to the successful service delivery and support of operations within the Council. Laptops align to the Council’s smart working principles and enable remote working, flexible hours, collaboration and a mobile workforce. Laptops could also reduce operational costs by saving office space, energy and maintenance.

Digital Services hold stock of laptops to allocate to end users and require a compliant procurement route to purchase sufficient devices to meet demand. The proposed call-off contract extension would permit procurements to be completed in an efficient, controlled manner, with fixed pricing for accurate budgeting monitoring.

The EA21 contract was called off in 2021 from Crown Commercial Services (CCS) Framework RM6068 following a further competition in the form of an aggregated e-auction. This further competition was permitted under the CCS framework call off rules and is considered the most cost-effective way of sourcing laptops and accessories. Twenty-nine public sector organisations took part and the savings achieved through combining demand is judged to offer a greater economy of scale, compared to the Council undertaking an independent procurement.

Under the proposed extension of the EA21contract, there would be no minimum spend commitment and the Council would be free to explore other procurement routes if it was thought the EA21 contract no longer demonstrated value for money or did not deliver products required by the Council.

The Council had procured through the EA21 contract since December 2021 and its predecessor EA16 was used to complete the laptop refresh in 2018/19. Continued use of the EA21 contract would ensure the laptops procured were consistent with models supported by Digital Services and are compatible with existing digital infrastructure and benefit from the extended on-site support solution offered under the contract.

Demand for laptops had increased over the last 24 months which is attributed to several factors including: service growth (new staff), digital inclusion for staff who had never had a laptop, support for work placement programmes, framework purchasing for Council initiatives and the replacement of out-of-warranty laptops. To minimise the need to purchase new laptops, the Council reallocated devices whenever possible, which was achieved by redeploying equipment collected through the ‘Movers and Leavers’ process. However, the stock was aging and the number of staff requiring laptops was growing and, as a result, there was an increased pressure to order new devices. The proposed maximum spend of up to £475,440.00, over the first extension for 12 months, was based on current demand and equates to approximately 10% of the total laptop estate. It also included contingency to support work placement programmes and Council initiatives through sourcing supplies under the EA21 contract.

It was anticipated that the Council would undertake a device refresh in the future and move to the Windows 11 platform. Extending the EA21 contract and approving spend of up to £475,440.00, over the proposed first 12-month extension, provided sufficient time for Digital Services to define the Council’s digital roadmap and fully scope and plan for a future refresh which demonstrates value for the Council. All new laptops procured through the EA21 contract extension will be Windows 11 compatible and could be utilised when the Council moved to the new platform.

Subject to further approval from Cabinet in 2024, the framework terms and conditions allow for a final 12-month extension from 10December 2024 to 9 December 2025. If the Council were not able to commence with the refresh by December 2024, Digital Services would do a further report recommending Cabinet approve the final extension and the Council would continue to be able to source supplies under the EA21 contract. The CCS framework ended on 9December 2025 and the Council would at that point pursue other options on how to fulfil its requirements.

Alternative options considered

Do not purchase

Without laptops staff would not be able to access the Council’s digital infrastructure. Digital Services would not have laptops to issue to end users which would impact service delivery and operational support within the Council. Further purchase of laptops and accessories was needed by the Council to resource delivery of its objectives.

Procure through other frameworks

The EA21 contract was considered the most favourable way of securing supplies as the pricing for these supplies under the contract was set against aggregated volumes. Alternative routes to market would not realise the same cost savings.