Decision details

Consideration was given to proposals for a new IT system (asset database) to enable all of the Council’s property and finance information to be managed effectively.

The Council owned and managed circa 4000 property assets. In a typical year, it collected and processed in excess of a thousand rental receipts and made thousands of payments to contractors and suppliers. It undertook approximately 100 rent reviews each year, granted 25 to 30 new leases and would see around 60 leases expire in a typical year.  In order to manage all of this effectively and efficiently, it was crucial that accurate and up-to-date information was held on the entire estate which provided links to other Council software, including Building Services payment systems and building records, terrier / land ownership records, etc. 

When assets were being valued, the valuers needed access to all the above information and the auditors needed to be satisfied that the information was accurate, up-to-date and easily available in order to be satisfied that the valuations were robust.

Reasons for Decision

Grant Thornton’s March 2021 Audit Findings Report highlighted an urgent need to improve the Council’s systems and practices particularly with regard to the maintenance of property information.

The Council’s current system (Atrium) would cease to be operational from December 2022 and a replacement was therefore sought. 

It was agreed to approve the acquisition of a new IT system (asset database) to enable all the Council’s property and finance information to be managed effectively.

Alternative Options

An options appraisal was considered in order to determine the best course of action for the Council.

·               Staying with the current provider was considered, as data migration would be easier. However, given the fundamental change to their offer and their charges, a direct award would not comply with procurement rules.  

·               Manage without a system. The council could not effectively manage the property estate without a system to replace. 

·               Full OJEU procurement had been considered, but the timescales were prohibitive.

Agreed:-

(1)          that approval be given to the acquisition of a new IT system (asset database) to enable all the Council’s property and finance information to be managed effectively;

(2)          that in connection with Resolution (1) above, the Director of Regeneration and Growth and the Director of Finance be authorised to commence a procurement process using the Crown Commercial Services G- Cloud 12 Framework or such other process as the Director of Regeneration and Growth and the Director of Finance Section 151 Officer considers appropriate;

(3)          that the Director of Regeneration and Growth and the Director of Finance and Section 151 Officer be authorised to oversee the procurement process for the acquisition of a new IT system (asset database) to enable all the Council’s property and finance information and to approve the selection of a system provider, to approve the terms of the contract and to award and enter into contract with the selected provider;

(4)          that an exemption, in accordance with the Council’s Procurement and Contract Procedure Rues (Rule 15), be made in the absence of a minimum of 3 tenders being obtained;

(5)          that the Director of Law and Governance and Monitoring Officer be authorised to execute any documentation necessary to enable the course of action referred to in Resolution (3) above to proceed.