DMFD235 Replacement Finance and Purchasing System

1.1.    Report LFC-24-016 to the London Fire Commissioner (LFC) explains that there are around 5,500 employees at London Fire Brigade (LFB) many of whom use the current finance and procurement system. It is imperative that they are able to use good, easy to use intuitive systems in their day-to-day activities.

1.2.    It has been identified that LFB’s Finance department struggles to recruit and retain staff as the current finance system (Masterpiece) needs updating and requires considerable manual intervention and workarounds resulting in control risks (as highlighted in internal audit reports) as well as demotivation and high turnover of finance staff. There are similar issues with the LFB’s current procurement system Purchase Order Management System (POMS), which LFB report is not fit for purpose in the modern era and has not been for many years.  The current user experience is very poor with end users, especially at the fire stations, getting frustrated with processes that should be simple when trying to order uniform or equipment.

1.3.    In 2021, DMFD135 approved expenditure for a new system. Approval is now sought for additional funding to align with the actual cost of the contact over 10 years. This is needed to ensure there is a robust system in place to support the high level of users and the move to more modern ways of working.

1.4.    LFC is required to collaborate with other Fire and Rescue Services as well as across the Greater London Authority Group. The ideal solution will be consistent with group related organisations wherever possible allowing for collaborative opportunities. Discussions are ongoing to this effect.

1.5.    All financial costs are currently commercially sensitive, as the tender process has not yet completed, and are shown in Part Two of this report, which is confidential for this reason.

1.6.    The option to do nothing and remain with the existing Masterpiece core system was considered in the previous report, including the procurement POMS application. This is not considered to be a viable option as we have been advised that the current system is approaching end of life and clearly no longer meets the strategic needs of the LFC.  Continuing with the current system poses a significant risk to the delivery of core finance and purchasing services, limits LFC’s ability to deliver its strategic objectives, due to its age and lack of modern technological functionality. 
 

2.1    The objectives and expected outcomes for this additional funding for a replacement Finance and Purchasing system remain the same as stated in the previous decision (DMFD135) which was approved by the Deputy Mayor in 2021. These include:

•    Development of a fit for purpose specification for an off the shelf, configurable Finance and Purchasing system instead of a bespoke and heavily customised option;

•    At a minimum, functionality in the following areas: core finance, budget monitoring, E-invoicing, purchasing, contracts, catalogues, operations support group, integration and document management;

•    The possibility of including budget management and warehouse management into a single solution;

•    Enhanced capabilities over the existing system including reporting and analytics, self-service, workflow automation and mobile access;

•    Procurement of a software solution that is easy to use, maintain and support. Adopting standard integration methods for data capture and transfer where required and be accessible across different LFC access points. Additionally, it will integrate with Microsoft 365 suite of applications and services to provide an excellent user experience for all staff groups.

Benefits

2.2    As part of the LFC’s project/programme governance, the Finance and Purchasing System Project Team has considered the benefits of this project and a benefits management approach.

2.3    Expected benefits and how they will be measured are listed below:

3.1    The LFC and the Deputy Mayor for Fire and Resilience are required to have due regard to the Public Sector Equality Duty (section 149 of the Equality Act 2010) when taking decisions. This in broad terms involves understanding the potential impact of policy and decisions on different people, taking this into account and then evidencing how decisions were reached.

3.2    It is important to note that consideration of the Public Sector Equality Duty is not a one-off task. The duty must be fulfilled before taking a decision, at the time of taking a decision, and       after the decision has been taken.

3.3    The protected characteristics are: age, disability, gender reassignment, pregnancy and maternity, marriage and civil partnership (but only in respect of the requirements to have due regard to the need to eliminate discrimination), race (ethnic or national origins, colour or nationality), religion or belief (including lack of belief), sex, and sexual orientation.

3.4    The Public Sector Equality Duty requires decision-takers in the exercise of all their functions, to have due regard to the need to:

•     eliminate discrimination, harassment and victimisation and other prohibited conduct.
•    advance equality of opportunity between people who share a relevant protected characteristic and persons who do not share it.
•    foster good relations between people who share a relevant protected characteristic and persons who do not share it.

3.5    Having due regard to the need to advance equality of opportunity between persons who share a relevant protected characteristic and persons who do not share it involves having due regard, in particular, to the need to:

•    remove or minimise disadvantages suffered by persons who share a relevant protected characteristic where those disadvantages are connected to that characteristic.
•    take steps to meet the needs of persons who share a relevant protected characteristic that are different from the needs of persons who do not share it.
•    encourage persons who share a relevant protected characteristic to participate in public  life or in any other activity in which participation by such persons is disproportionately low.

3.6    The steps involved in meeting the needs of disabled persons that are different from the needs of persons who are not disabled include, in particular, steps to take account of disabled persons’ disabilities.

3.7    Having due regard to the need to foster good relations between persons who share a relevant protected characteristic and persons who do not share it involves having due regard, in particular, to the need to:

•    tackle prejudice 
•    promote understanding

3.8    An Equality Impact Assessment has been completed and the impact of the integrated and accessible system like this one proposed is very positive for all, so also for protected characteristics. As part of any tendering process, LFB requests an Equality Statement, Modern Slavery Statement, and more specific policies, such as a trans policy.

3.9    The new system would promote inclusion because it will better utilise accessibility tools enabled in the system and compliment accessibility tools provided by the new LFC desktop and Microsoft 365.This benefit would also be enhanced by the more widespread use of tablets /laptops (outside of Citrix) where accessibility tools such as dictation, voice control and speech recognition will be able to run locally offering enhanced functionality.

3.10    It is expected to benefit those with neurodiversities to select the viewing option most appropriate for their specific needs and all training provided on the system will be inclusive, considering neurodiverse communication, different learning styles, training documents handouts for training sessions as appropriate etc.

3.11    Microsoft package also includes 'text to audio' and 'enlarge screen' options, which would serve as adjustments for people with sight and hearing problems. Altogether, the proposal has a very positive impact on accessibility and cognitive processing of finance and purchasing.

3.12    Whilst the Finance and Purchasing system is used by a relatively small group of staff, the procurement element (i.e. POMS replacement) could in theory be used by the majority of the organization.

3.13    The software itself has not yet been selected, however, the project team will welcome the opportunity to ensure any requirements from the equality groups are captured.
 

Workforce comments

4.1.    Engagement with staff, consistent with Local Digital Declaration principles will be required, to meet principle 1 which is: ‘We will go even further to redesign our services around the needs of the people using them. This means continuing to prioritise user needs above professional, organisational and technological silos’.

4.2.    During Phase 1 of the project (development of business requirements) there were a significant number of stakeholder workshops and engagement sessions involving staff from various teams in Finance and Procurement, as well as staff from OSG, ICT, Fleet, Fire Stations and Property. The stakeholders who have contributed to the workshops will be involved in every further stage of the project to ensure that the software produced meets their requirements and is easy to use.

Sustainability comments

4.3.    At present no specific sustainability implications have been identified in relation to this procurement.

Procurement comments 

4.4.    Procurement comments are contained within Part Two of the report.

Conflicts of interest

4.5.    There are no conflicts of interest to declare from those involved in the drafting or clearance of this decision.
 

5.1    Finance comments are contained within Part Two of the report. There are no direct financial implications for the GLA.

6.1    This report seeks authority to commit expenditure set out in Part 2 allowing the LFC to award a contract up to 10 years for a new Finance and Purchasing system.

6.2    Under section 327D of the Greater London Authority Act 1999, as amended by the Policing and Crime Act 2017, the Mayor may issue to the Commissioner specific or general directions as to the manner in which the holder of that office is to exercise his or her functions.

6.3    By direction dated 1 April 2018, the Mayor set out those matters, for which the Commissioner would require the prior approval of either the Mayor or the Deputy Mayor for Fire and Resilience (the "Deputy Mayor"). In particular, paragraph (b) of Part 2 of the said direction requires the Commissioner to seek the prior approval of the Deputy Mayor before “[a] commitment to expenditure (capital or revenue) of £150,000 or above as identified in accordance with normal accounting practices…”. The value of proposed contract, as set out in the Part 2, exceeds this threshold, therefore the prior approval of the Deputy Mayor is required in accordance with the aforementioned direction. 

6.4    Report LFC-24-016 to the LFC, as reviewed and commented upon by LFC’s General Counsel, confirms an open and transparent tender process has been undertaken in accordance with the Public Contract Regulations 2015. The contract award decision is delegated to the Assistant Director of Procurement and Commercial Services. 

6.5    These comments have been adopted from those provided by the LFC’s General Counsel Department in report LFC-24-016 to the LFC.