Award

Enterprise Resource Planning (ERP) Solution

STOCKTON-ON-TEES BOROUGH COUNCIL

This public procurement record has 1 release in its history.

Award

13 Dec 2024 at 10:28

Summary of the contracting process

Stockton-on-Tees Borough Council has awarded a contract to Unit4 Business Software Ltd for the provision of a cloud-based Enterprise Resource Planning (ERP) Solution. This procurement falls under the industry category of software package and information systems (CPV: 48000000) and is classified as goods. The ERP Solution will include SaaS hosting, core accounting, and Field Service solutions, serving the region of UKC11. The contract is valued at £1,107,000 and will span a period of five years. The procurement stage for this tender is the Award stage, with the contract signed on 13th December 2024 to address urgent operational needs brought about by the supplier's earlier announcement regarding discontinuation of support for on-premises solutions post December 2024.

This tender presents significant business growth opportunities for IT firms specialising in ERP solutions. Companies with expertise in cloud services and software-as-a-service (SaaS) hosting, particularly those with capabilities in core accounting and field service solutions, can benefit from this contract. The decision to award this contract through a negotiated procedure without prior publication, recognised for its necessity due to extreme urgency, highlights the seriousness of the Council's requirement for a seamless transition and business continuity. Large-scale software firms or those experienced in rapid deployment and integration of cloud-based ERP systems would be well-suited to compete in similar tenders. This demonstrates critical market opportunities, particularly for businesses positioned to respond swiftly to unforeseen demands.

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Notice Title

Enterprise Resource Planning (ERP) Solution

Notice Description

This notice sets out Stockton On Tees Borough Council's intention to award 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 SaaS hosting, core accounting and Field Service solutions use by Stockton On Tees Borough Council. The proposed contract is for a period of 5 years. The total value of the proposed contract is PS1,107,000.

Lot Information

Lot 1

This notice sets out Stockton on Tees Borough Council's intention to award a contract to Unit4 Business Software Limited for the provision of a cloud-based Enterprise Resource Planning Solution. The ERP Solution will include SaaS hosting, core accounting and Field Service solutions for use by Stockton On Tees Borough Council. The proposed contract is for a period of 5 years. The total value of the proposed contract is PS1,107,000. The Council considers 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.

Procurement Information

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 site 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 virtual server 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 Page 6 to 7 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.

Publication & Lifecycle

Open Contracting ID
ocds-h6vhtk-04c7ca
Publication Source
Find A Tender Service
Latest Notice
https://www.find-tender.service.gov.uk/Notice/040209-2024
Current Stage
Award
All Stages
Award

Procurement Classification

Notice Type
Award Notice
Procurement Type
Standard
Procurement Category
Goods
Procurement Method
Limited
Procurement Method Details
Negotiated without publication of a contract notice
Tender Suitability
Not specified
Awardee Scale
Large

Common Procurement Vocabulary (CPV)

CPV Divisions

48 - Software package and information systems


CPV Codes

48000000 - Software package and information systems

Notice Value(s)

Tender Value
Not specified
Lots Value
Not specified
Awards Value
Not specified
Contracts Value
£1,107,000 £1M-£10M

Notice Dates

Publication Date
13 Dec 20241 years ago
Submission Deadline
Not specified
Future Notice Date
Not specified
Award Date
13 Dec 20241 years ago
Contract Period
Not specified - Not specified
Recurrence
Not specified

Notice Status

Tender Status
Complete
Lots Status
Not Specified
Awards Status
Active
Contracts Status
Active

Contracting Authority (Buyer)

Main Buyer
STOCKTON-ON-TEES BOROUGH COUNCIL
Contact Name
Not specified
Contact Email
corporateprocurement@stockton.gov.uk
Contact Phone
Not specified

Buyer Location

Locality
STOCKTON-ON-TEES
Postcode
TS17 6BJ
Post Town
Cleveland
Country
England

Major Region (ITL 1)
TLC North East (England)
Basic Region (ITL 2)
TLC3 Tees Valley
Small Region (ITL 3)
TLC31 Hartlepool and Stockton-on-Tees
Delivery Location
TLC11 Hartlepool and Stockton-on-Tees

Local Authority
Stockton-on-Tees
Electoral Ward
Mandale & Victoria
Westminster Constituency
Middlesbrough and Thornaby East

Supplier Information

Number of Suppliers
1
Supplier Name

UNIT 4 BUSINESS SOFTWARE

Open Contracting Data Standard (OCDS)

View full OCDS Record for this contracting process

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The Open Contracting Data Standard (OCDS) is a framework designed to increase transparency and access to public procurement data in the public sector. It is widely used by governments and organisations worldwide to report on procurement processes and contracts.

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