PAPER D3
Purpose: For
Decision
Committee: EXECUTIVE
Date: 10 SEPTEMBR 2002
Title: REPLACEMENT
COMPUTER SYSTEM FOR LOCAL LAND CHARGES
PORTFOLIO HOLDER –
RESOURCES
To request
that Standing Orders as to Contracts be waived with respect to the purchase of
a replacement computer system for Local Land Charges.
·
Local Land Charges has been computerised since April
1998 with a system supplied by ESRI (UK) Ltd and has continued to operate very
successfully from that date.
·
Computerisation has reduced search turnaround times to
an average 5-6 working days, which is well within the national guideline of 10
working days.
·
80% of historical entries held on the former Medina
Borough and South Wight Borough Local Land Charges Registers have been entered
onto the computer system to date. The
Registers are now maintained entirely on computer.
·
The supplier of the current system is due to withdraw
system support at the end March 2003, in favour of their newer product, Total
Land Charges (TLC).
·
The replacement system is designed to further assist
Local Authorities in achieving various e-government targets, specifically the
National Land Information Service (NLIS).
The Local Land Charges department will not be able to fully achieve this
target unless this replacement system is purchased.
·
The ICT department have assisted Local Land Charges in
preparing a Project Brief outlining the various possible replacement options
for the existing computer system.
·
The Project Team are unanimous in believing that there
is a very strong case for proceeding directly to contract negotiations with the
current supplier and that the disadvantages of the open tender process heavily
outweigh the advantages as summarised below:-
Disadvantages:
o
Longer implementation timescale for alternative
product / supplier
o
Existing system will have to run unsupported by
supplier
o
Very high risk of loss of LLC service
o
Jeopardises completion of current data capture of LLC
Register
o
High risk of problems migrating data to an alternative
product
Advantages:
o
Implementation timescale allows for completion of data
capture of LLC Register by end September 2003
o
Existing system will continue to be supported by
supplier until end September 2003 and probably until new system is in place
o
Very low risk to LLC service
o
Reduced training, data migration, consultancy and
maintenance costs over time.
o
The existing system supplier has stated that if an
order is placed with them by end of March 2003 for a replacement system, they
will continue the existing system support arrangements until the end September
2003, when the remaining historical capture of the LLC Register entries will
have been completed.
·
The supplier proposes replacement of the current
system with their newer product at an estimated cost of £65,450, with an annual
maintenance cost of £5,000.
·
A maximum of £10,000 additional expenditure could be
required to meet the cost of hardware upgrades, if necessary.
·
Standing Orders as to Contracts 2.8,
require formal tender for a contract of this value.
·
The purchase consultancy process could produce a
reduced overall cost:
a)
lower training needs resulting from staying with the
same supplier
b)
ease of data migration within a known format to the
supplier.
·
In addition, not undergoing the formal tender process
will save the Council £16,000.
·
Purchase of the proposed replacement system will
result in a saving of £18,000 per annum maintenance (currently £23,000 reducing
to £5,000). Over the 5 year life of the
project, this will result in a total saving of £90,000.
·
Total savings to the Council if the existing service
supplier is selected is therefore £106,000.
·
Funding of the new product will come from the same
revenue stream as used to fund the existing system (ie the projected search
income over the next 5 years).
·
Once negotiations with ESRI
(UK) Ltd have been completed a full
business case will need to be approved by the Project Board prior to completion
of the contract.
LEGAL
IMPLICATIONS
·
The Council is legally obliged to reply to Local
Authority Search Requisitions (LLC.1) and Enquiries of the Local Authority
(Con.29)
·
The maintenance of a Local Land Charges Register is a
statutory obligation on Local Authorities
1.
To follow Standing Orders to Contracts and run a
formal tender exercise for replacement of the existing LLC computer
system. This is unlikely to be
completed in time to prevent running on an unsupported system from end March 2003
(see Background bullet point 4).
2.
To waive Standing Orders as to Contracts 2.8 and enter
into contract negotiations with ESRI (UK) Ltd for replacement of the existing
LLC computer system with their new product, TLC, subject to the approval of a
full business case by the Project Board, in compliance with Best Value, prior
to completion of the contract.
3.
To do nothing and continue to use the existing LLC
computer system beyond the supplier=s system
support deadline (ie end March 2003) running the risk that total system failure
will cease services and destroy the good reputation currently held.
That the
Executive approve Option 2.
None
Contact
Point: Caryl Murphie
|
M J A FISHER Strategic Director Corporate and
Environment Services |
R R BARRY Portfolio Holder - Resources |