Contract Award – Application Management Services

This paper requests the approval to award a contract for the provision of Application Management Services with a maximum term of £8 years and a maximum value of £85.99m.

• Total Technology Programme Infrastructure Application Management Services full business case;
• Award of an 8 year contract to Accenture for the provision of Application Management Services with a value total value of £85.99m

Introduction and background

1. Following approval of the Total Technology Programme Infrastructure Outline Business case in December 2014 the MPS have carried out an OJEU compliant competitive procurement process to award a contract for the provision of Application Management Services.

2. In August 2015 eight Pre-Qualification Questionnaire responses were received with five taking part in the invitation to tender stage which. Following this competitive process Accenture scored the highest on both price and technical. Accenture has been selected as the preferred supplier.

Issues for consideration

3. By undertaking a formal competitive exercise value for money has been maximised. Accenture have demonstrated they have the corporate stability, depth of capability and breadth of experience to be a stable provider of the AMS service.

Financial Comments

4. The cost of the proposed contracts will be funded from within existing budgets.

5. The contract will deliver annual revenue saving of £2.5m.

6. The Outline Business Case included a provision of £92m for Application Management Services; following a competitive process the contract with Accenture requires an investment of £86m.

Legal Comments

7. The recommendation can be lawfully approved in accordance with MOPAC Contract Regulations and EU/UK Procurement law.

8. In accordance with the MOPAC Scheme of Delegation and Consent (4.8), the DMPC must approve all requests to go out to tender for contracts that exceed £500,000.

9. Full details are contained within the reports attached.

Equality Comments

10. There are considered to be no negative equality or diversity implications arising from this procurement process. The applicants short listed were evaluated for acceptable equality and diversity statements as well as their ability to meet MPS requirements under the Equality Act 2010 as a supplier to MOPAC. The evaluation exercise considers the applicants ability to act as a responsible employer and meet employment obligations deemed commensurate with wider GLA objectives.