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Agenda Item No

 

The Vale of Glamorgan Council

 

Cabinet Meeting: 5th November 2012

 

Report of the Leader

 

Microsoft Software Licencing

 

Purpose of the Report

1.         To inform Cabinet of the outcome of the tender process to acquire Microsoft Licences.

Recommendations

That Cabinet note the contents of the report.

Reasons for the Recommendations

That Cabinet are made aware of the arrangements for the provision of Microsoft Licences.

Background

2.         A report was presented to Cabinet on the 11th June 2012 outlining the options available to the Council to procure Microsoft Licences.

3.         Minute C1737 resolved that delegated authority be granted to the Director of Finance, ICT and Property in consultation with the Leader to award the tender to the winning supplier for the supply of Microsoft Software and that a further report be presented to Cabinet on the outcome of the award of the contract.

4.         This is the further report as requested.

Relevant Issues and Options

5.         The tender was advertised through the Government Procurement Services Framework Agreement number RM721/Lot3. Only two of the possible suppliers responded to the tender, Insight and Computacenter.

6.         The tender document outlined a number of options for the suppliers to bid against to ensure that the Council obtained best value for money. These 5 options were outlined in the original report to Cabinet, but are repeated here for clarity.

7.         Option 1 Enterprise Agreement - Perpetual - The Council owns the software and can upgrade to whatever is the latest version during the 3 years of the contract. At the end of that time the Council has an option to take a break for say up to two years, but cannot upgrade during that period.

8.         Option 2 Enterprise Agreement - Subscription - The Council rents the software but never owns it, but can upgrade to whatever is the latest version during the 3 years of the contract. At the end of that time the Council could enter into another agreement or revert to another type of agreement or stop using the software. There is a potential penalty to moving to another type of agreement which if incurred would increase the cost of any software procured by a factor of 1.7 above the Public Sector pricing.

9.         Option 3 Select Agreement - Perpetual -The Council owns the software but has no rights to upgrade during the 3 years of the contract. At the end of this period the Council would have to buy the licences again to move to the latest version.

10.      Option 4 Select Agreement with Software Assurance - Perpetual -The Council owns the software and can upgrade to whatever is the latest version of the software during the 3 years of the agreement.

11.      Option 5 Microsoft Office 365 - Licenced - the Council rents the software on a flexible, per user, per month subscription plan with Microsoft hosting and managing the software.

12.      The tenders were evaluated following the agreed criteria of 70% cost and 30% quality and the winning bid was received from a company called Computacenter.

13.      The contract documentation has been completed and signed off and a number of pcs have been migrated to Windows 7 and Office 2010 as part of the testing and compatibility process prior to a wider roll out that will be commenced later this year.

14.      In order to obtain the prices quoted the contract documentation had to be completed by the end of June 2012. In order for this to proceed Chief Executive's Emergency Powers were used and Minute number C1816 refers.

Resource Implications (Financial and Employment)

15.      The winning bid was for Option 2 for a Microsoft Enterprise Subscription licence. This was substantially less than the indicative costs that had been obtained as part of the research prior to advertising the tender. The full details of the bids received have been included in to this report which as it contains commercially confidential financial details of the bid has been declared as a Part II document.

16.      The indicative costs identified for this option in the report to Cabinet in June were approximately £136,000 per annum.

17.      Suppliers were also asked to investigate the possibility of obtaining a rebate for the licences already owned by the Council. Only the winning supplier was able to offer this enhancement to their bid, which further reduced the cost to the Council. The effect of this is shown in the Appendix.

Sustainability and Climate Change Implications

18.      There are no sustainability and climate change implications that arise as a result of this report.

Legal Implications (to Include Human Rights Implications)

19.      There are no legal implications that arise as a result of this report.

Crime and Disorder Implications

20.      There are no crime and disorder implications that arise as a result of this report.

Equal Opportunities Implications (to include Welsh Language issues)

21.      There are no equal opportunities implications that arise as a result of this report.

Corporate/Service Objectives

22.      To exercise robust financial management and explore all opportunities to improve efficiency and service quality including collaborative working.

23.      To meet and respect the needs of customers, colleagues and future generations.

24.      To deliver OneVale, the Council’s transformational change programme and to put information and communications technology (ICT) to its most effective use in order to support service delivery.

25.      To deliver cost-effective support and service desk function to monitor performance, meet customer needs and communicate effectively

Policy Framework and Budget

26.      This report is for information only.

Consultation (including Ward Member Consultation)

27.      This project has been previously consulted on and approved as part of the ICT Strategy.

Relevant Scrutiny Committee

28.      Corporate Resources Scrutiny Committee

Background Papers

Tender documentation.

 

Contact Officer

David Vining - Head of Strategic ICT

 

Officers Consulted

Mike Walsh - Lawyer

Neil Thomas - Procurement Officer

Graham John - Infrastructure Manager

Mike Bumford - Accountant

 

Responsible Officer:

Sian Davies - Managing Director

 

 

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