Councillor Dana Carlin, Cabinet Member for Finance and Corporate Services, approved a new contract for the Council's Microsoft Enterprise Subscription Agreement. This decision was made under urgent procedures due to the impending expiry of the current agreement and the need to ensure continuity of service.

Microsoft Enterprise Subscription Agreement - New Contract Award

Councillor Dana Carlin approved the award of a new three-year contract for the Council's Microsoft Enterprise Subscription Agreement (ESA) to Bidder A, with a maximum value of £5,445,000. This decision was made under urgent procedures because the current contract expires on 30 April 2026, and a new agreement is required to ensure the continued provision of Microsoft licence subscriptions. The procurement process, conducted through a further competition under the Crown Commercial Services (CCS) framework RM6098, was delayed, necessitating an urgent decision to meet statutory standstill periods and ensure the allocation of a purchase order before the deadline. Failure to do so would have resulted in significant disruption to council operations.

The Council's current Microsoft ESA contract was due to expire with no option for extension. A compliant procurement process was undertaken, involving a mini-competition that ran from 13 January 2026 to 5 February 2026. Sixteen suppliers viewed the tender, and four submitted final bids. These bids were assessed based on 70% price, 20% quality, and 10% social value. Bidder A was successful, offering the most advantageous bid.

The decision to award the contract was made under special urgency, with the agreement of the Chair of the Overview & Scrutiny Committee, as outlined in Part Four, Section D, Paragraph 17.1 of the Council's constitution. This was deemed necessary because any delay caused by the standard call-in procedure would seriously prejudice the Council's interests.

Councillor Carlin sought clarification on the implementation timeframe and was assured that internal approvals, including from the Spending Control Panel and the Section 151 Officer, were in place. She also expressed satisfaction that a competitive bidding process had been used. Discussions also covered the licensing strategy, with officers confirming a blend of licences would continue, with E5 as the default for core functionality and security. The use of Microsoft Teams telephony was also highlighted as a move away from legacy systems.

A key point of discussion was the social value criteria. Councillor Carlin requested assurances that the contract would align with Haringey's local priorities, such as employment. Officers explained that they had been working with the Council's digital inclusion manager to align the contract with the Council's digital inclusion policy, including aspects like technology refurbishment, recycling, and training. They committed to building on this with the new contractor, with Councillor Carlin emphasising the desire to leverage the contract to enhance local residents' employability through apprenticeships.

The report noted that the Council relies heavily on Microsoft technologies, which align with its Digital Roadmap. Alternative options, such as switching to Google or Open Source software, were considered but deemed too disruptive and risky given the extensive reliance on Microsoft products and the time required for implementation. A direct award was also considered less optimal than a further competition.

The new contract will support the Council's sustainability goals by providing tools for carbon reduction and energy efficiency, particularly through the use of Microsoft Azure data centres, which are significantly more energy-efficient than traditional on-premises servers. Microsoft's commitment to becoming carbon negative by 2030 was also highlighted.

The decision was made in accordance with Contract Standing Orders 0.08 and 2.01.c, which permit the Cabinet Member to approve contract awards valued at £500,000 or more. The procurement process was also compliant with the Public Contracts Regulations 2015.

The report can be found in the Public reports pack 16th-Mar-2026 14.00 Urgent Decisions, and the Printed minutes 16th-Mar-2026 14.00 Urgent Decisions provide the full details of the decision.