Decision Maker: Cabinet Procurement and Insourcing Committee

Outcome: For Determination

Is Key Decision?: Yes

Is Callable In?: No

Date of Decision: October 6, 2025

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