Content

Salford City Council – Record of
Decision
 
I Paul Dennett, City Mayor, in exercise of the powers contained within the
Council Constitution
do hereby approve:
 
·     
approve the extension of the Contract forMicrosoft
Licensing.
 

Detail required

Answers

Title/Description of Contracted
Service/Supply/Project

Microsoft Licensing

Name of Successful
Contractor

Phoenix Software

Supplier Registration Number

(to be supplied by Corporate
Procurement)

S1080

Type of organisation

(to be supplied by Corporate
Procurement)

Private Limited Company

Status of Organisation

(to be supplied by Corporate
Procurement)

Non-SME

Contract Value (£)

£         
2,211,558

Contract Duration

24 months

Contract Start Date

01/06/2023

Contract End Date

31/05/2025

Optional Extension Period 1

N/A

Optional Extension Period 2

N/A

Who will approve each Extension
Period?

Procurement Board (extension >
£150k)

Contact Officer (Name &
number)

Matt Wall – 0161 793 3993

Lead Service Group

Service Reform & Development

How the contract
was procured?

(to be supplied by
procurement)

Framework Call-Off (Mini Competition)

Framework Details (where
applicable)

(procurement body, framework reference
& title, start/ end date

Crown Commercial Services
Technology Products and Associated
Services
RM6068 – Lot 3
Start 10/12/19
Ends 09/12/21

Funding Source

Revenue Budget

Ethical Contractor (EC): Mayor’s
Employment Charter

 

EC: Committed to sign Charter

 

EC: Accredited Living Wage
Employer

The
Council Microsoft Licensing is approaching the end of its current
procured contract, which has been running for 36 months since June
2020 where we have been running on the Microsoft Ramp Pricing
programme, which has seen significant savings in the years achieved
allowing the organisation to finically adjust the digital
subscription licensing, as part of the procurement it was factored
in an extension option of a further 24 months; extension options
were initially factored into allowing Digital, Data and Technology
the ability to monitor and understand the subscription approach to
licensing as a service. The technology sector has been growing at
expediential rates and becoming part of all services in most if not
all, functions of everyday life.
 
Digital Data and Technology seeks to extend the licensing
contract for 24 months. This is vital to the digital growth and
digital maturity of the services and offerings internal and
external, directly impacting employees and the ability to deliver
digital solutions for the residents of Salford.
 
Throughout the current 36-month contract, we have successfully
navigated a global pandemic, returned to the workplace, and
improved digital and data through virtual collaboration and live
data sets linked into all organisational applications giving
precise data on key statutory areas of the authority’s
functions (Social Care, Finance, Human Resources, Governance). In
addition, Digital, Data and Technology have vastly improved the
Cyber Security posture of our organisation; this has been done
through the full use of the products included in our Microsoft
licensing solution. Ensuring that the investment incurred by
Salford has been used to the maximum potential.
 
Within the original procurement report dated 10th of
June 2020, Digital, Data and Technology advised that simplifying
our licensing model and introducing a modern approach would, in
turn, benefit the organisation; this has been evident in how we
operated digitally throughout a global pandemic in being
fundamental in keeping statutory functions functional and allowing
our workforce to continue to service residents of the City of
Salford.
 
The
extension of the contract is highly recommended for the following
reasons:

·     
Industry Enhanced Cyber Security
Assurance

·     
Directorates reliance to deliver services internally
and externally.

·     
Digital licensing/offerings is the 4th
utility to the authority, just as important as Gas, Electricity and
Water, paramount to the successful operation of the
council.

·     
Digital growth/enhancement and maturity

·     
Safe interconnectivity to wider partner
organisations

·     
Data presentation and digest
 
Over
the years one, two and three, we have seen growth in the
organisation and also digitally enabling more employees that have
been digitally excluded in the past; the growth in numbers is
represented below:
 

Product

2020 qty

2023/24 qty

growth

Microsoft E5
Licence

2300

3040

740

Microsoft F3
Licence

1

226

225

Teams Calling
plans

1

2400

2399

Teams Room
Pro

0

72

72

Visio

1

15

14

Project Plan
1

1

80

79

Project Plan
3

1

21

20

Project Plan
5

1

16

15

 
The
cost for the above reflects on the current digital user base and is
subject to change based on growth or reduction of employees, the
projected costs of the services per annum is detailed below:
£1,105,778.52 per annum.
 
Over the 36 months of
the initial contract Phoenix Ltd has become a sponsor partner of
HOST in helping to deliver programmes aligned to skills and
awareness; this is part of the social value management of digital
procurements that DDaT leverage and
promote with suppliers in achieving meaningful social
value.
 
One example of this
was Phoenix delivered alongside our HOST operators IN4.0 our HOST
CyberFirst programme to 500-year 8
female pupils at the AJ Bell Stadium. The activity used the
Microsoft Minecraft Education platform and the Frozen Planet2
module, to teach students how technology can help the planet. The
session was 50% informative and 50% interactive, whereby the
students took on the character of a mother polar bear who had to
keep her cubs safe.
 
Some key information
from the outcome of these programmes was:
·     
82% of girls that attended are now considering a
career in Cyber Security
·     
65% now considering pursuing a Computer Science GCSE
(nationally only 21% of girls take up this subject)
·     
97% of the girls attending on the day enjoyed the
session.
 
The above shows how
impactful our digital contract procurements can be and achieve true
social value outcomes.
 
Options considered and rejected
were:
Salford do have the option to reduce the licensing model down to
a lower offer called E3; this does reduce the annual spend to
£800,251.32 per annum, however, this comes with a reduction
of services and increased risk to the authority, it is Digital,
Data and Technology’s professional recommended opinion to not
procure this option, due to the significant risks and loss of
services that include:

·     
Teams Phone Calling.

·     
Dial-Out for Audio Conferencing – reduced
hybrid working.

·     
Power BI Pro – Risk to the organisation to
present data.

·     
Personal insights – Viva.

·     
Reduced Information Protection – A security
risk.

·     
Advanced Message Encryption – A security
risk.

·     
Virus/malware defender protection
reduced.

·     
Reduced cyber threat protection.

·     
Reduced data life cycle management.

·     
Privileged Access Management – Technical
requirement for safe administrative elevation for
changes.

·     
Endpoint management – control of
laptops
 
ASSESSMENT OF RISK:  HIGH
Salford City Council are operating on Microsoft products, and
without renewing, we would become non-compliant from a licensing
model and would stop Salford’s enablement from delivering
digital services effectively.
 
Failure to extend this licensing would result in all SCC digital
solutions expiring and all digital offerings no longer working and
potential fines for statutory agreements and non-licence
conformity.
 
It
would also remove the cyber security protection, increasing the
risk level to the organisation further beyond the current
government level. “SEVERE means an attack is highly
likely” without any mitigation to protect, defend or stop a
cyber security attack. This poses a significant operational and
reputational risk to the authority and broader to our data
regarding our residents.
 
Salford relies on the availability of our systems on a daily
basis. A secure online environment is essential to Salford City
Council, providing an ever-increasing number of online services to
Salford citizens and businesses. The ability to conduct online
transactions securely is central to the delivery of public and
commercial services and communications to the people of
Salford.

 
The source of funding
is:
Revenue Expenditure
 
Legal Advice obtained - Yes
 
Financial Advice
obtained - Yes
 
Procurement Advice obtained -
Yes
 
HR Advice obtained –
N/A
 
Climate Change Implications
obtained – N/A

Contact Officer: Matt Wall
Telephone number: 0161 793 3993
 
Please delete from the bullets
below any which are not relevant
 
This matter is also subject to
consider by the Lead Member for Service Reform. The Lead Member has
been consulted and is supportive of the proposed
contract.
 

Signed:     Paul
Dennett     Dated:    24 May 2023.
           
       City
Mayor
 

FOR DEMOCRATIC SERVICES USE
ONLY
*          
This decision was published on 25 May 2023
*          
This decision will come in force at 4.00 p.m. on 1 June 2023
unless it is called-in in
accordance with the Decision Making
Process
Rules.