The Urgent Decisions committee of Haringey Council was scheduled to consider a new contract award for Microsoft Enterprise Subscription Agreements. This was deemed an urgent matter due to the impending expiry of the current contract and the need to ensure continuity of essential council services.

Microsoft Enterprise Subscription Agreement - New Contract Award

The meeting was scheduled to discuss the award of a new contract for the council's Microsoft Enterprise Subscription Agreement (ESA). The current agreement was due to expire on 30 April 2026, with no option for extension, necessitating a new contract to ensure the continued provision of Microsoft licence subscriptions. The procurement process, conducted under the Crown Commercial Services (CCS) framework RM6098, Technology Products and Associated Services 2, Lot 3, involved a mini-competition where 16 suppliers viewed the tender and four submitted final bids. These bids were assessed based on 70% price, 20% quality, and 10% social value.

The report pack indicated a recommendation for the Cabinet Member for Finance and Corporate Services to approve an award of contract to Bidder A for a three-year period, from 1 May 2026 to 30 April 2029, with a maximum value of £5,445,000. This decision was considered urgent as the procurement process needed to be completed by 31 March 2026 to allow for a statutory 10-day standstill period before the contract formally commenced and for the allocation of a purchase order. Failure to meet these deadlines would have resulted in significant disruption and potential loss of service across council operations.

Alternative options considered included not renewing the contract, which was deemed not viable due to the cessation of essential Microsoft services and severe impact on the council's digital infrastructure. A direct award was also considered but deemed less likely to provide optimal value compared to a further competition. Switching to non-Microsoft software was also assessed as highly disruptive and risky, given the council's heavy reliance on Microsoft technologies and its existing digital roadmap.

The report highlighted that the council's digital technology strategy is based on Microsoft products and services within the E5 suite, which underpins both the current technology stack and future digital roadmap. The advanced security services within E5 are considered fundamental to protecting the council's digital infrastructure. Independent reviews by Gartner and 31ten Consulting endorsed the council's procurement approach under CCS RM6098 SPA24 as effective for achieving best value.

The use of Microsoft Azure was noted as supporting the council's sustainability goals, with Microsoft data centres designed for high efficiency and transitioning to 100% renewable energy. Azure data centres are significantly more energy-efficient than traditional on-premises data centres. The ESA also enables hybrid work models through Microsoft Teams, potentially reducing commuting-related emissions. Microsoft's commitment to being carbon negative by 2030 and removing all historical emissions by 2050 was also mentioned.

The report also noted that the core component of the agreement is funded within the existing Digital Services revenue contracts budget, with a contingency provision for additional licences requiring a separate request. The potential adoption of further Microsoft technologies in the future would require appropriate technical and financial approval processes. The procurement process was led by Strategic Procurement and carried out in line with Contract Standing Orders, using a Crown Commercial Services framework, which is permitted under the council's CSOs. The Director of Legal and Governance confirmed there were no reasons preventing the Cabinet Member from approving the recommendations. The report also stated that the proposals took account of the council's Public Sector Equality Duty under the Equality Act 2010.

Part of the discussion, relating to exempt information concerning the financial or business affairs of any particular person, was scheduled to be considered in private, with the press and public excluded.