Content

RESOLVED:
 
To approve the
direct award of a contract to Polaris Software for a total amount
of £3,000,000. This contract, through the G-Cloud 13
framework, is set for an initial term of two years with the
possibility of extending for an additional one-year term and covers
the provision of parking permits, parking enforcement and other
associated IT systems.
 
 
Reasons For Decision
 
1. 
Hackney Council has been using the supplier’s Liberator
system since 2014 to manage parking permits, visitor vouchers, and
Penalty Charge Notices (PCNs) as mandated under the Traffic
Management Act 2004 and other associated services. The system
supports crucial functions including parking permit management,
enforcement, and customer services, facilitating over £25
million annually.
 
See graph of Parking and Market
Income 2015-24 within report.
 
2. 
The direct award of the contract to Polaris Software for a
2+1 year term is driven by the need to
ensure continuous service following the expiration of the current
contract in December 2024, for which there are no extension options
available. This interim solution prevents any potential disruption
of crucial systems beginning January 2025.
3. 
Initially, a business case was prepared in 2022; however, since
then, both the technological and legislative landscapes have
evolved significantly, prompting the Council to revise its
approach.
4. 
Therefore, the direct award will allow Hackney Council ample time
to prepare for an open procurement process which seeks a contract
duration of 5+3+2 years, and is aligned with the new Procurement
Act 2023, to ensure compliance with more transparent and
competitive bidding requirements.
5. 
Continuing with Polaris Software under a direct award allows the
Council to maintain high levels of service delivery, manage the
statutory duties effectively, and support the objectives outlined
in the PEP.
6. 
Over the past decade, the Liberator system has facilitated the
online transition of Council parking services and recently,
supported the implementation of:
· 
A revised emissions-based charging structure in line with DVLA
vehicle tax rates, and the introduction of emissions-based charging
on estates, to encourage vehicle owners to switch to less polluting
vehicles and choose more sustainable travel options.
· 
The introduction of a year-on-year increase to the diesel
surcharge.
· 
Reduced visitor voucher usage through pricing and allocations
including estates, and a revised short-stay parking fee structure
that takes into consideration how much pollution vehicles
produce. 
· 
The introduction of maximum stays in all-electric vehicle charging
points, to make them accessible.
· 
The introduction of a demand-led enforcement service and additional
duties when the Road and Traffic Enforcement Officers (also known
as Civil Enforcement Officers) are patrolling the streets, estates
and off-street car parks.
· 
Making permit holder parking bays available to Hackney Blue Badge
holders who have the highest priority in the Council’s
hierarchy of parking needs.
 
7. 
Under the direct award for the next three years, the Liberator
system will continue to support Business As Usual (BAU) and the commitments outlined in the
PEP, with further focus on closing any gaps between the original
specification and the current state, and potentially transition to
a cloud-based environment if the opportunity arises, which will
provide auto-scaling, better cost analysis and security.
 

Milestone
 

Due by

CPIC direct award

October 2024

Direct contract award to Polaris Software

November 2024

FPolaris Software
contract start

January 2025

System review and requirements gathering

September 2024

Market analysis

October 2024

Draft BC and specs open procurement sign
off

November 2024

CPIC BC open procurement

January 2025

Tender out

February 2025

Tender evaluation and supplier selection

May 2025

Award report open procurement sign-off

August 2025

CPIC award report

October 2025

Contract negotiation and award

November 2025

Implementation planning

January 2026

Installation and testing

June 2026

User training and system handover

November 2026

System go live

April 2027

Post-implementation review

July 2027

First-year review

April 2028

 
8. 
During the three-year contract period, a comprehensive discovery
phase is planned for the first year, allowing ample time to assess
the available options, initiate a tender exercise and implement a
new system.
 
 
Alternatives
Considered and Rejected
 
1. 
In determining the best approach for the procurement of the Parking
IT systems, Hackney Council previously evaluated several options as
part of the initial business case developed in 2022.
2. 
These included conducting looking at framework options, engaging
new suppliers on short-term contracts, considering in-house
development, and exploring hybrid solutions involving multiple
vendors. Each of these options was assessed with the intent of
optimising system performance, cost-efficiency, and compliance with
regulatory requirements.
3. 
However, they were found to be less feasible due to various
constraints such as the high risk of service disruption, the
significant costs associated with switching or developing new
systems, and the lengthy timelines required which would not meet
the urgent need for continuity in parking management services.
4. 
At that time, in an effort to mitigate the potential setup costs
and ensure a long-term solution, the council considered awarding a
5+5+5 year contract to the existing
supplier, Polaris Software. This approach was seen as a means to
stabilise service delivery over an extended period, minimising the
financial impact associated with supplier changes.
5. 
Nonetheless, this option also carried risks, particularly in terms
of locking the council into a long-term arrangement with limited
flexibility to adapt to changes.
6. 
Given the rapid advancements in artificial intelligence and
legislative changes introduced by the new Procurement Act 2023, the
landscape in which these options were considered has since shifted.
The new Act emphasises the need for a competitive process, ensuring
that procurements are conducted in a transparent and fair manner to
encourage innovation.
7. 
The council now proposes a more conservative direct award strategy
for a 2+1 year term as an interim
solution. This approach will allow the council to manage risks
during potential system transitions and ensure future procurement
aligns with current technological advancements and legislative
frameworks.
8. 
This interim direct award is critical for maintaining
uninterrupted, high-quality service delivery, particularly in light
of the Council’s commitments under the PEP. The Liberator
system is integral to the council’s operations, supporting
statutory functions and generating significant revenue.
9. 
Opting for this temporary solution provides the necessary stability
while the council prepares for a more comprehensive procurement
process aligned with the latest requirements and technological
capabilities.