Decision Maker: Cabinet Procurement and Insourcing Committee

Outcome: For Determination

Is Key Decision?: Yes

Is Callable In?: Yes

Date of Decision: October 7, 2024

Purpose:

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.