Hosting and Basis Managed Service Contract

The public contract concerns the supply of goods, services, or works by the existing supplier which are intended as an extension to, or partial replacement of, existing goods, services, or works 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. Specifically, moving to another hosting provider would incur additional costs and require significant resources, which is not feasible during the ongoing review of our existing SAP system (Future of SAP Project).

As part of the work undertaken by an external consultant organization for the SAP replacement project, they have been reviewing our systems architecture and consolidating this into an options proposal which will soon be presented to IWC. Changes to the existing landscape will cause parts of this proposal to be incorrect or inaccurate, undermining the Future of SAP project.

(b) The difference or incompatibility would result in disproportionate technical difficulties in operation or maintenance. Staying with the current provider ensures continuity and compatibility, allowing us the necessary time to make a decision on the future of SAP and take any subsequent actions.

Many areas make up and link to our SAP architecture, including Finance, Procurement, Human Resources, and Payroll. There would be significant technical challenges in changing our landscape in advance of any outcome from the Future of SAP project. The purpose of the Future of SAP project is to outline the best available options for the system and its dependencies that meet the IWC requirements. Making significant changes to the SAP landscape would have a major impact on the Future of SAP Project and the cost/benefit analysis that will be part of that project.

1. Minimized Disruption: Changing suppliers during the review of the SAP system could cause significant disruption to ongoing operations. Maintaining the current provider ensures stability and minimizes the risk of operational downtime.
2. Expertise and Familiarity: The current provider has in-depth knowledge and expertise with our existing SAP system. Their familiarity with our specific setup and requirements allows for more efficient and effective support, reducing the learning curve and potential errors that a new provider might face.
3. Cost Efficiency: Transitioning to a new provider would not only incur additional costs for the migration but also potential hidden costs related to integration, and roubleshooting. Staying with the current provider avoids these expenses and ensures cost efficiency.
4. Strategic Alignment: The current provider is already aligned with our strategic goals and has been involved in the Future of SAP Project. Their continued involvement ensures that the project progresses smoothly without the need for re-alignment or re-briefing a new provider.
5. Risk Mitigation: Introducing a new provider at this stage could introduce unforeseen risks and challenges. The current provider has a proven track record of reliability and performance, which mitigates the risk of project delays or failures.
6. Regulatory Compliance: Ensuring compliance with regulatory requirements is critical. The current provider is already compliant with our regulatory standards, and switching providers could complicate compliance efforts and introduce potential risks.