Direct Award for Finance System replacement

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            "id": "GB-COH-4263691",
            "name": "Two Rivers Housing",
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    "buyer": {
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            "id": "2023/54",
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        "title": "Direct Award for Finance System replacement",
        "description": "The requirement of this direct award is within the scope of Schedule 5 of the Procurement Act 2023, and in line with the Section 44 the same. The award is for the provision of a Financial Cloud based, Software as a Service system (SAAS) incorporating a Purchase to Pay solution to MRI Software Limited. This contract enables the organisation to transition from the current server-based OpenAccounts finance system to an integrated, modern, cloud-hosted platform with the same supplier. The cloud-hosted system is the replacement for the current server-based system, which is no longer being developed. The existing contract commenced in October 2021. Contract Scope Current Two Rivers Housing finance system is a suite of three standalone but interfaced modules consisting of: OpenAccounts, eBIS and Version One. All three products are owned by OneAdvanced and provided by MRI Software. The replacement system will be one fully integrated system that is cloud based. The move to the cloud-based system will also result in on-premises savings such as servers, backups, and disaster recovery costs. Essentially, the contract being awarded, concerns the supply of goods and services by the existing supplier which are intended as an extension to, or partial replacement of, existing goods and services in circumstances where: (a) a change in supplier would result in the contracting authority receiving goods, services or works that are different from, or incompatible with, the existing goods, services or works, and (b) the difference or incompatibility would result in disproportionate technical difficulties in operation or maintenance. The award will be for a period of 41 months commencing from December 2025, including a five-month implementation period at zero cost. The scope of the contract will include the implementation, licensing, and ongoing maintenance of the following components of the Financials suite: * Core Financials base engine * Project Management module * Air Approvals (mobile approval workflow) * Business Tax Portal * Purchase Invoice Automation The annual fee is PS99,500 including VAT, subject to a 5.5% annual inflationary uplift for three years, bringing the total contract value to PS315,218. Included within the contract is a Right to Use Licence for Open Accounts which would have otherwise incur a cost of PS123,910 over 7 years",
        "status": "complete",
        "procurementMethod": "direct",
        "procurementMethodDetails": "Direct award",
        "procurementMethodRationale": "Urgent replacement of unsupported system: The current version of OpenAccounts (8.5) is now unsupported. Continued usage jeopardises Two Rivers Housing's Cyber Essentials accreditation, which requires systems to be no more than two versions behind current releases. * Non-viable upgrade option: Upgrading to the latest OpenAccounts version (10.1) would require a significant investment, including an upgrade of the Progress Database. OpenAccounts is being phased out and no longer has a product roadmap beyond legislative updates, this would not represent value for money for a short-term solution. * Alignment with organisational strategy: Transitioning to a SaaS-based finance system aligns with Two Rivers Housing's digital and technology strategy to reduce reliance on onpremises infrastructure. * Natural graduation from the current system: Cloud Financials is the replacement for OpenAccounts and will be managed and supported by the same system owners and support providers * Cost of change: The cost of supplier replacement will include, demobilisation of existing system, user training and onboarding, data cleansing and migration which will increase overall cost and as such not aligning with the Group objective to reduce waste of all forms and ensure value for money. * Familiarity and reduced training requirement: The Financials product uses similar processes to the existing OpenAccounts system, reducing training needs. MRI consultants already understand Two Rivers Housing's business processes, supporting a smooth and efficient implementation. * Operational efficiencies: Replacing three separate systems (OpenAccounts, eBIS, and Version One) with one integrated solution will reduce system interfaces and provide operational efficiencies. Moving to a cloud-based system will also reduce on-premises costs such as server maintenance, backups, and disaster recovery. Future Procurement Plans Two Rivers Housing will use the time opportunity availed through this award to re consider finance solutions for the growing needs of the organisation, with the intention to conduct a full competitive tender for its finance system to go live in May 2029.",
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