Governance & Transformation Cabinet Member – Minutes – 20 December 2016

40      (40)    JOINT PROCUREMENT WITH NORTH EAST LINCOLNSHIRE COUNCIL FOR AN INTEGRATED HUMAN RESOURCES AND PAYROLL SYSTEM – The Director of Policy and Resources submitted an urgent report which sought approval for a procurement plan for the supply of an integrated human resources (HR) and payroll system, which would be procured as a single solution with North East Lincolnshire Council.

This matter was considered urgent as a long lead time was required to allow both councils sufficient time to develop, test and ensure users were suitably skilled to use the system effectively.

The council currently operated the HR Professional system provided by FMP, (formerly Bond), for human resources transactions and accesses the MHR Itrent system via a supported service through East Riding of Yorkshire Council (ERYC), for payroll.  The current arrangement with ERYC did not allow the council to undertake payroll for external organisations (including academies) and therefore HR cannot generate income by selling payroll services commercially.

The single solution for two councils would allow a degree of rationalisation by the supplier which was anticipated would bring efficiencies in the longer term, mindful that implementation would need to be adequately resourced.

Both councils’ current contracts expire in June 2018, allowing the councils sufficient time to develop, test and ensure users were suitably skilled to use the system effectively by April 2018 with dual operation to provide assurance of effective operation.

Under the Shared Services agenda, similar activity would be required to integrate the Finance systems.

An open tender process would be conducted, in compliance with EU procurement legislation.

A project team of officers from both councils had developed a specification of needs to allow growth and flexibility and to meet future needs, based upon aligned and streamlined processes.

It was anticipated that evaluation activity would be undertaken in February 2017.

The cabinet member would be notified of the award recommendation which was anticipated in March/April 2017.

The intention was to build and implement the integrated system and processes throughout the financial year 2017/18; the new solution was required to be operating as the live system for the financial year 2018/19.

The tenders would be evaluated in accordance with the following weighting

  • Cost    60%
  • Quality  40%

The tender was being released on the basis of a five year contract term with further possible extensions to a maximum of three years.

Resolved – (a) That the open tender be approved to undertake a joint procurement with North East Lincolnshire Council, leading to the appointment of a single system provider as set out in sections 1.3 and 2 of the report, and (b) that an information report detailing the outcome of the joint procurement for an integrated human resources and payroll management system be submitted to the cabinet member following the award of contract.