Purpose

This report is being presented to the
Corporate Procurement and Innovation Committee (CPIC) for approval.
This is in accordance with council standing orders, and your
approval will allow us to begin the procurement steps for the
aforementioned.

Content

RESOLVED:
1. 
To approve the procurement of Google Workspace licences
through the Crown Commercial Services G-Cloud 14 Framework
Agreement Digital Marketplace (RM1557.14) for a term of up to three
(2+1) years.
 
Reasons For Decision 
 
This report seeks authorisation to procure
Google Workspace licences, replacing the existing ones that expire
on 31st December 2025. The procurement will be conducted through
the G-Cloud Digital Marketplace Lot 2 Cloud
Software, for a maximum three-year term.
 
The key issues for decision-makers to consider
are:
 
· 
Continued Access to Essential Services: Google
Workspace has been the Council's primary software platform and
central Identity Access Management (IAM) solution since December
2018. Securing new licences is crucial to ensure uninterrupted
access to these core productivity tools and prevent service
disruption.
· 
Affordability and Best Value: The proposed
procurement strategy leverages the pre-vetted G-Cloud Digital
Marketplace and a formal pricing exercise to introduce competition
among pre-approved vendors. This approach aims to drive down costs,
ensure a favourable price, and achieve best value for money. The
three year contract term is also
expected to provide long-term price stability and potential
volume-based discounts.
· 
Meeting Business Needs: The recommendation directly
addresses the critical business need for continued access to Google
Workspace, ensuring business continuity and avoiding disruption to
day-to-day operations. The use of the specified CCS framework lot
ensures a structured, compliant, and efficient procurement
process.
· 
Measurable Benefits: The strategy offers
quantifiable benefits, including cost savings (measured against
available current or list prices), price certainty (measured
against budget forecasts), operational efficiency (measured by lack
of downtime or user complaints), and compliance (measured against
audit requirements and governance policies).
· 
Rejected Alternatives:
§ 
Mini Competition: Due to strict timelines and
imminent contract expiry, a proposed mini-competition for Google
Workspace licences was rejected. An internal assessment concluded
that the risk of service lapse was unacceptably high. To mitigate
this and ensure value for money, an exhaustive market pricing
evaluation confirmed the current licensing arrangement was the most
cost-effective and timely solution, justifying proceeding with the
evaluated provider.
§ 
Direct Award: A direct award for the Google
Workspace licence renewal was rejected on the basis that it does
not constitute a compliant procurement route and would have made it
challenging for the council to demonstrate value for money.
§ 
Migration to Microsoft 365: Taking on this option
right now would be a significant risk. We need more time to make
the right decision and create a platform that's truly future-proof
and will enable us to meet our long-term objectives. By taking the
time to carefully evaluate our options, we can avoid these risks
and ensure we implement a solution that's sustainable and supports
our goals for years to come.
 
This report aims to outline a strategic and
compliant approach to procure essential software licences, ensuring
continued operational efficiency, achieving best value, and
mitigating significant risks associated with alternative options.
It is being placed before the Cabinet Procurement and Insourcing
Committee to seek the necessary authorisation to proceed with the
recommended procurement process.
 
Alternative Options
Considered and Rejected
 
Mini-Competition
– Rejected
 
In light of the strict timelines set by the
imminent contract expiry dates, a proposed mini-competition for the
reprocurement of Google Workspace
licences was rejected. A comprehensive internal assessment
concluded that the risk of running out of time was unacceptably
high, a scenario that would have resulted in a significant lapse of
critical communication and collaboration services for the entire
council. To mitigate this risk while still ensuring the council
achieved the best value for money, an evaluation of marketplace
pricing was conducted. This process, which was based on a review of
published offerings, confirmed that the current licensing
arrangement represented the most cost-effective and timely solution
available, thereby justifying the decision to forgo the
mini-competition and proceed with the most cost effective evaluated
provider under the prevailing constraints.
 
Direct Award –
Rejected
 
Directly awarding Google Workspace licences to
a supplier is not recommended. It lacks transparency and fails to
ensure value for money, conflicting with the UK's Procurement Act
2023, which mandates fair competition and accountability for public
funds. Bypassing using Frameworks or the Digital Marketplace risks
overpaying, missing better alternatives, and facing scrutiny.
Direct awards are only for extreme urgency or technical
exclusivity, neither of which applies to Google Workspace.
 
Facilitate the
migration of the Council's digital infrastructure from Google to
Microsoft. – Rejected
 
Given the current time constraints, proceeding
with this particular option at this juncture would introduce a
considerable degree of risk. A more prudent approach dictates that
we allocate additional time for thorough deliberation and strategic
planning. This extended period will enable us to arrive at a
well-informed decision and meticulously construct a platform that
is not only resilient and forward-compatible but also perfectly
aligned with our long-term strategic objectives.
 
By consciously opting to dedicate sufficient
time to meticulously evaluate all available options, we can
proactively mitigate any inherent risks. This strategic pause will
empower us to implement a solution that is not only sustainable and
robust but also one that will reliably support our organisational
goals and operational requirements for many years into the future,
ensuring long-term success and stability.
 
The cost of potentially migrating to Microsoft
would cover
(1) the cost of licensing, and
(2) the cost of migration from the
current platform.
 
Migration costs include data migration, cloud
re-platforming, identity and access management, single sign-on for
specialist systems, as well as the requirement for specialist
technical capacity to implement the transition, change management,
architecting and training. These costs, which cannot be fully
clarified without further detailed discovery due to our current
workarounds in Google Workspace.
 
Cost Comparison
between Google and Microsoft
A preliminary analysis suggests that a
comparable Microsoft licensing package would be more expensive than
our current Google Workspace costs.
 
It is important to note that the price for
Google Workspace licenses has increased due to the inclusion of
Gemini AI as standard for all Google Workspace Enterprise
Licences.
 
We are continuing to monitor and understand
the expected change in pricing of Microsoft licences. The current
pricing for E3 basic licences with enhanced security features is
estimated in Exempt Appendix A which provides a comparison to
Google Workspace Enterprise standard licences:
 
Exempt Appendix 'A':  LB Hackney - ESA Renewal + E5 SU & Ramp
Final