Official UK procurement notice
CWC21186 - Enterprise Resource Planning Solution
Authority: Wolverhampton City Council (Local council)
What is being bought
Published requirement descriptionWolverhampton City Council has awarded 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 Human Resources, Payroll, Procure to Pay, Income Management and the General Ledger for use by Wolverhampton City Council and Wolverhampton Homes, Schools, West Midlands Pension Fund, and the Local Government Pension Scheme.
The contract is for a period of 4 years with an option to extend annually for up to three years (1+1+1). The total value of the proposed contract is £4,545,615.
CPV: Software package and information systems
The lotProcurement structure
single lot · no lot value publishedLot #1Wolverhampton City Council has awarded a contract to Unit4 Business Software Limited…Awarded
Wolverhampton City Council has awarded a contract to Unit4 Business Software Limited for the provision of a cloud-based Enterprise Resource Planning Solution. The ERP Solution will include Human Resources, Payroll, Procure to Pay, Income Management and the General Ledger for use by Wolverhampton City Council and Wolverhampton Homes, Schools, West Midlands Pension Fund, and the Local Government Pension Scheme.
The proposed contract is for a period of 4 years with an option to extend annually for up to three years (1+1+1). The total value of the proposed contract is £4,545,615.
The Council considered 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.
Procedure terms & legal framework
From the official record- Procedure method
- Award procedure without prior publication of a call for competition
- Legal basis
- CELEX · 32014L0024 Public Contracts Regulations 2015 (Directive 2014/24/EU)
- Procurement category
- Goods
- Notice status
- Awarded without competition
- Procurement threshold
- Unspecified in notice
- Regulatory regime
- Standard
- Commercial structure
- Stand-alone contract (no framework)
- Competition type
- Direct award (no call for competition)
- GPA / WTO covered
- Yes (GPA)
- Recurring procurement
- Unspecified in notice
- First published
- 20 Jun 2024, 13:48 BST
- Last source update
- 17 Jul 2024, 12:05 BST
- Authority reference
DN729102- FTS notice number
2024/S 000-022014- Classification (CPV)
- Delivery area
- Official registry OCID
ocds-h6vhtk-04717dFind a Tender
- Why no open competition
Extreme urgency brought about by events unforeseeable for the contracting authority/entity and in accordance with the strict conditions stated in the directive
- Published justification
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 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 Azure 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 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.
Commercial outcome & contract awards
Published awards, contracts and bid statistics, not a forecast| Awarded to | Value | Date | Status |
|---|---|---|---|
| UNIT4 Business Software Limited | £4,545,615 †same award published again · counted once | — | Awarded |
| UNIT4 Business Software Limited | £4,545,615 † | — | Awarded |
Contracts
Contract 022014-2024-1 · UNIT4 Business Software Limited
- Signed
- 9 Jul 2024
- Value
- £4,545,615
- Status
- active
Contract 019043-2024-1 · UNIT4 Business Software Limited
- Signed
- 20 Jun 2024
- Value
- £4,545,615
- Status
- active
Bid statistics published by the authority
| Bids | SME | VCSE | Valid bid range |
|---|---|---|---|
| 1bids | — | — | — |
Contracting authority & participating public bodies
Bidders & participating suppliers
2 commercial parties on the notice- Unit4 Business Software LtdAwarded supplier
- Unit4 Business Software LtdAwarded supplier
Official documents & specifications
Official links; attachments are not copiedNo document links were published on the notice.