Agenda Item No
The Vale of Glamorgan Council
Cabinet Meeting: 4th January 2012
Report of the Leader
E-Business Suite System Upgrade
Purpose of the Report
1. To advise of the outcomes of upgrading the Oracle E Business Suite.
1. That the final cost and outcomes of the project are noted and approved
Reasons for the Recommendations
1. Where the original contract sum is exceeded by 10% approval of the Cabinet is required in line with the Financial Regulation 21.5.
2. The Council currently uses the Oracle E-Business Suite for its main business systems, as follows:
· Customer Relationship Management (CRM) (December 2006)
· Human Resources (December 2006) and Payroll (April 2010)
· General Ledger (April 2008)
· Procurement and Accounts Payable (April 2008)
· Accounts receivable and Advanced Collections (May 2008)
3. A major milestone in the Council’s transformation programme was reached in April 2010 when the implementation of all its major business systems on the Oracle E Business Suite was achieved. It was considered that at this point, no major implementation work should be undertaken before considering upgrading to a later release.
4. Cabinet approved on the 19th January 2011 the proposal to upgrade to the latest Release 12.1.3. funded from the E-Government Reserve. It was estimated that the technical eBusiness suite upgrade alone would cost no more than £155,000.
Relevant Issues and Options
5. Following a quotation and assessment process, Mokum, were identified as the supplier to provide the upgrade support on the project. Their best and final offer of £135,624 was inclusive of the complete upgrade of the eBusiness Suite and the database, knowledge transfer, training, 50 days towards the rebuild of any customisations necessary and post go live support.
6. The project was managed in line with the Council's project management methodology. The Council successfully went live on the 20th October as planned and have upgraded the full suite of modules currently used in paragraph 2 above.
7. During the project there were two areas where additional support were required from Mokum
· More work than anticipated to ensure that no functionality was lost as a result of the upgrade.
· Consultant advice on how to re-apply certain customised functionality in the upgraded version that no longer worked as it had previously.
Resource Implications (Financial and Employment and Climate Change, if appropriate)
8. The additional support totalled £31,000 (an increase of 22% on the original contract sum) for an additional 40 days based upon the day rates quoted as part of the best and final offer. This is above 10% the original contract sum of £135,624 and, in line with Financial Regulation 21.5, the approval of Cabinet is required.
9. The final sum for the contract is £166,624 which is £12,000 more than the original anticipated maximum cost. This remains to be significantly below the prices bid by the other suppliers who quoted for this work. The quotation of the next lowest supplier was £300,000 excluding the cost of any customisations. The cost can be met from the OneVale reserve.
10. A retention of 10% of the original quotation sum is being held pending successful completion year end financial and payroll procedures.
Legal Implications (to Include Human Rights Implications)
11. The project was subject to a legal contract agreed in consultation with The Director of Legal, Public Protection and Housing Services.
Crime and Disorder Implications
Equal Opportunities Implications (to include Welsh Language issues)
14. This project supported the objective of managing the Council’s workforce, money, information and assets efficiently and securely.
Policy Framework and Budget
15. For executive decision by Cabinet
Consultation (including Ward Member Consultation)
16. Ward member consultation was not been carried out as this project did not affect individual wards. The OneVale programme office was consulted. Periodic reports on R12 were taken to the OneVale Project Managers Group and Programme Board
Relevant Scrutiny Committee
17. Corporate Resources
Cabinet Report 19th January 2011
Gill Howells - Operational Manager Finance and Systems
Head of Strategic IT
Head of Audit and Resource Management
Head of Financial Services
Sian Davies - Director of Finance, ICT and Property