Agenda item

Report CS16009

The Portfolio Holder introduced a report seeking authorisation to agree new maintenance contracts for the existing information systems used by the Housing Division for a two year period from 1^st April 2016.

The Housing Division used two information systems to support its business.  These comprised Home Connections which offered Choice based lettings functionality, and the Northgate Housing System which provided a range of services including an online housing application form, a case management service for housing advice, homeless cases and rent accounts, and a document management system, as well as providing statutory reporting functions.  The existing maintenance contracts for these systems would end on 31^st March 2016. 

Following consideration of a Gateway Review of Housing Information Systems in January 2015, Members had agreed to fund the procurement of a new information system which would meet the current and future statutory requirements of the Housing Division.  An initial tendering exercise had been undertaken which had not been successful in attracting bids, following which a range of alternative procurement options had been explored and would be reported to Care Services PDS Committee at its meeting on 10^th March 2016.

In order to ensure that the business of the Housing Division continued to be supported during the procurement process for a new information system, it was proposed that contracts be agreed with Home Connections and Northgate for the maintenance of the existing information systems for a maximum period of two years with the opportunity to terminate on three months’ notice if the new information system was implemented at an earlier date.

In considering the report, the Chairman was concerned that the initial tendering exercise had not been successful in attracting bids.  The Assistant Director: Housing Needs reported that only a small number of providers offered the kind of system needed by the Housing Division, and that these providers had been approached for feedback following the initial tendering exercise.  This process had identified that the ability of a number of these providers to submit bids had been limited by similar tenders being run by two large national organisations during the same period and by some of the providers moving to a new IT platform.  Some comments had also been made regarding the need to streamline processes and the split between quality and pricing, and these would be taken into consideration for future tendering exercises.  The initial tender specification had been drawn up by an IT Project Manager working with the Housing Division to ensure that the system would meet the current and future statutory requirements of the service, and best practice had also been drawn from similar tender specifications by other local authorities who had successfully attracted bids. 

In discussion, Members underlined the importance of ensuring that any future tender specification was drawn up to a high standard, and queried whether there was a need for additional expertise to support this.

A Member highlighted the delay to the procurement process caused by the unsuccessful initial tendering exercise, and queried how this would impact the savings which were expected to be realised by the introduction of a new information system.  The Assistant Director: Housing Needs confirmed that a report on the recommended actions for procurement would be provided to the next meeting of Care Services PDS Committee on 10^th March 2016, and that it was hoped that any delay to the procurement process would be minimal.  The main element of savings expected from the new information system would be through a reduction in the cost of upgrades and system maintenance from 2018/19.  Further work would be undertaken with Finance Officers on how the delay in procuring a new information system would impact projected savings for forthcoming years and an update would be provided to Members following the meeting.

A Member requested that an update on the procurement process for the new Housing IT system be reported to all future meetings of Care Services PDS Committee.

RESOLVED that the Portfolio Holder be recommended to:

1)  Agree an exemption from tendering to allow contracts for systems maintenance to be awarded to the following providers:

i)  Home Connections for a two year period from 1^st April 2016 to 31^st March 2018 at a cost of £23,312; and,

ii)  Northgate Housing System for a two year period from 1^st April 2016 to 31^st March 2018 at a cost of £87,084.

2)  Agree that authority be delegated for the purchase of essential upgrades to the Northgate system to the Assistant Director: Housing Needs in consultation with the Head of IT and Portfolio Holder for Care Services.