Agenda item

To approve a contract for Mobysoft’s RentSense product to deliver an efficient and effective arrears recovery process.

         Approval was sought to award a contract for Mobysoft’s RentSense product to deliver an efficient and effective     arrears recovery process.

Approval was sought to award a contract for Mobysoft’s RentSense product to deliver an efficient and effective arrears recovery process.

Whilst the Chair of the Safer Neighbourhoods and Active Communities Scrutiny Board agreed that the software was multi-purpose, he questioned whether the contract had been put out to tender and how many companies had submitted bids.

In response, the Cabinet Member for Housing stated that the contract had not been put out to tender and had been done as an exemption to procurement rules as there were no other suppliers in the market who could offer the Council this product and service. The return on investment for the contract had been proven in the initial two-year contract procured from Mobysoft which was now coming to an end.

Furthermore, officers had benchmarked what was being paid for the software and service with other Mobysoft Customers and were satisfied that Sandwell Council were getting value for money. The efficiency gains included an increased capacity within our existing team resources which had freed them from the manual checking of rent accounts ensuring their time and expertise was focused on interventions to collect rent and providing advice and assistance to tenants in financial hardship, so they could maintain their tenancies.

                  Reasons for Decision

Mobysoft’sRentSense product would enable the service to deliver an efficient and effective arrears recovery process that maximised cash collection, prevented tenants from getting into debt, supported tenancy sustainment and reduced homelessness.

The value and return on investment had clearly been demonstrated during the existing contract term in delivering greater caseload accuracy, a more manageable caseload enabling officers to focus on tenants most in need, reduced arrears, fewer tenants in debt, fewer evictions and in supporting tenant wellbeing and tenancy sustainment.

Alternative Options Considered

Option 1 – Use Capita’s Open Housing Management System: there was no guarantee moving forward that any future version upgrade would deliver on the functionality required to reduce arrears, increase cash collection and manage the escalating demands of universal credit.

Option 2 - Procure a new Housing Management System:

The current contract with Capita expired March 2023 and approval was being sought to commence a system review. The end to end process to review, procure and implement a new housing management system would not be completed until approximately 2025.

                  Option 3 - Enter into a new contract with Mobysoft                      Limited:

This would not require any additional resources and Mobysoft had delivered on the projected outcomes which included a reduced arrears caseload, capacity gain enabling officers to focus on complex arrears cases and mitigate the impact of universal credit, increased cash collection and a reduction in arrears.

Agreed:-

(1)          that the Director of Housing be authorised to enter into a direct award contract via Crown Commercial Services G-Cloud Framework Agreement with Mobysoft Limited for RentSense software for a period of two years with the option to extend for a further two years when the existing contract expires on 23 February 2022 given no further extension provision exists within the current contract, at a total cost of £905,356, should the two year option to extend be exercised;

(2)          that in connection with Resolution (1) above, the Director of Housing be authorised to enter into a new two-year contract with the option to extend for a further two years with Mobysoft Limited from 24 February 2022 to 23 February 2026;

(3)          that the Director – Law and Governance and Monitoring Officer be authorised to execute any documentation necessary to enable the course of action referred to in Resolution (1) above;

(4)          that any necessary exemptions be made to the Council’s Procurement and Contract Procedure Rules to enable the course of action referred to in Resolutions (1) and (2) above to proceed.