Contract award notice
Results of the procurement procedure
Section I: Contracting
entity
I.1) Name and addresses
Wolverhampton City Council
Civic Centre, St Peters Square
Wolverhampton
WV1 1RL
UK
Contact person: Mr Barry Greenwood
E-mail: barry.greenwood@wolverhampton.gov.uk
NUTS: UKG
Internet address(es)
Main address: http://www.wolverhampton.gov.uk
Address of the buyer profile: http://www.wolverhampton.gov.uk
I.4) Type of the contracting authority
Regional or local authority
I.5) Main activity
General public services
Section II: Object
II.1) Scope of the procurement
II.1.1) Title
CWC21186 - Enterprise Resource Planning Solution
Reference number: DN729102
II.1.2) Main CPV code
48000000
II.1.3) Type of contract
Supplies
II.1.4) Short description
Wolverhampton City Council has awarded a contract to Unit4 Business Software Ltd for the provision of a cloud-based Enterprise Resource Planning Solution (ERP Solution). The ERP Solution will include Human Resources, Payroll, Procure to Pay, Income Management and the General Ledger for use by Wolverhampton City Council and Wolverhampton Homes, Schools, West Midlands Pension Fund, and the Local Government Pension Scheme.
The contract is for a period of 4 years with an option to extend annually for up to three years (1+1+1). The total value of the proposed contract is £4,545,615.
II.1.6) Information about lots
This contract is divided into lots:
No
II.1.7) Total value of the procurement
Value excluding VAT:
4 545 615.00
GBP
II.2) Description
II.2.3) Place of performance
NUTS code:
UKG
II.2.4) Description of the procurement
Wolverhampton City Council has awarded a contract to Unit4 Business Software Limited for the provision of a cloud-based Enterprise Resource Planning Solution. The ERP Solution will include Human Resources, Payroll, Procure to Pay, Income Management and the General Ledger for use by Wolverhampton City Council and Wolverhampton Homes, Schools, West Midlands Pension Fund, and the Local Government Pension Scheme.
The proposed contract is for a period of 4 years with an option to extend annually for up to three years (1+1+1). The total value of the proposed contract is £4,545,615.
The Council considered that the award of the contract is permitted under Regulation 32(2)(c) of the Public Contract Regulations 2015 (the PCR 2015). Regulation 32 of the PCR 2015 allows contracting authorities to award a public contract by a negotiated procedure without prior publication. Regulation 32(2)(c) permits the award of a public contract for reasons of extreme urgency brought about by events unforeseeable by the contracting authority, the time limits for the open or restricted procedures or competitive procedures with negotiation cannot be complied with.
The Council considers that due to Unit4’s unforeseeable decision on 17 October 2023 to remove support for the Council’s on-premises solution from 31 December 2024, the Council does not have sufficient time to conduct market tests, complete a full procurement exercise and implement a new solution before 31 December 2024. The award of a contract pursuant to Regulation 32(2)(c) is therefore strictly necessary, for reasons of extreme urgency, to ensure business continuity for the Council. Further details are set out in Section IV below.
II.2.5) Award criteria
Cost criterion: Price & Quality
/ Weighting: 100
II.2.11) Information about options
Options:
No
II.2.13) Information about European Union funds
The procurement is related to a project and/or programme financed by European Union funds:
No
Section IV: Procedure
IV.1) Description
IV.1.1) Type of procedure
Award of a contract without prior publication of a call for competition
Justification for selected award procedure:
Extreme urgency brought about by events unforeseeable for the contracting authority and in accordance with the strict conditions stated in the Directive
Explanation
The Council considers that the award of the contract is permitted under Regulation 32(2)(c) of the PCR 2015. Regulation 32 of the PCR 2015 allows contracting authorities to award a public contract by a negotiated procedure without prior publication. Regulation 32(2)(c) permits the award of a public contract for reasons of extreme urgency brought about by events unforeseeable by the contracting authority, the time limits for the open or restricted procedures or competitive procedures with negotiation cannot be complied with. The Council considers that its reliance on Regulation 32(2)(c) is justified for the following reasons:
The Council has a perpetual licence for the Unit4 Agresso Enterprise Resource and Planning Solution and receives annual maintenance and support from Unit4 Business Software Limited (Unit4). The data is stored on the Council's Azure infrastructure, which is an on-premises model.
On 17 October 2023 Unit4 announced that it would no longer provide maintenance and support services for perpetual licences or any on premises solutions post 31 December 2024, meaning that the Council would have to migrate the existing solution to Unit4's own cloud services and adopt a subscription-based licence model.
The ERP solution is an essential and integral part of the Council's financial systems. Unit4's announcement that it would cease to provide maintenance and support services or any on premises solutions post 31 December 2024 was not foreseeable by the Council and has given rise to a situation of extreme urgency in which the Council must ensure that its ERP systems do not become unsupported post 31 December 2024.
It is the Council's position that the time period provided by Unit4 before the ERP system becomes unsupported is insufficient to permit the Council to undertake the intricate process of compiling detailed business requirements for a new solution, perform an exhaustive market analysis, execute a comprehensive open procurement exercise, and deploy a new ERP system prior to 31 December 2024. The decision to award a contract pursuant to Unit4 pursuant to Regulation 32(2)(c) is therefore considered to be strictly necessary in a situation of extreme urgency, to ensure business continuity for the Council. This approach will also provide the Council with the necessary time to evaluate all potential options and ensure that any future procurement decisions align with the Council's best interests and value for money obligations.
IV.1.8) Information about Government Procurement Agreement (GPA)
The procurement is covered by the Government Procurement Agreement:
Yes
IV.2) Administrative information
IV.2.1) Previous publication concerning this procedure
Notice number in the OJ S:
2024/S 000-019043
Section V: Award of contract
A contract/lot is awarded:
Yes
V.2 Award of contract
V.2.1) Date of conclusion of the contract
09/07/2024
V.2.2) Information about tenders
Number of tenders received: 1
The contract has been awarded to a group of economic operators:
No
V.2.3) Name and address of the contractor
Unit4 Business Software Ltd
c/o DAC Beachcroft LLP, Portwall Place
Bristol
BS1 9HS
UK
NUTS: UKG
The contractor is an SME:
No
V.2.4) Information on value of the contract/lot (excluding VAT)
Total value of the contract/lot:
: 4 545 615.00
GBP
V.2.5) Information about subcontracting
Section VI: Complementary information
VI.4) Procedures for review
VI.4.1) Review body
Wolverhampton City Council
Civic Centre
Wolverhampton
WV1 1SH
UK
VI.5) Date of dispatch of this notice
17/07/2024