AGENDA ITEM 4
Cabinet
CAB/031/09
Key Decision Ref FP/189/06/09.
Date: 1 December 2009
EssexWorks: Customers First Transformation Programme
Report by Lord Hanningfield, Leader of the Council
Enquiries to Officer Nick Bell, Deputy Chief Executive and Executive Director for
Finance.
Purpose of report
To update Cabinet regarding the position of the procurement process and make
them aware that the period of contractual clarification has ended. Cabinet is also
asked to note the contract structure of the master (partnership) agreement and
the details regarding the initial works that are proposed to be undertaken under
the new strategic partnership.
Decision Areas
Cabinet are asked to take a decision on appointing IBM as our Strategic Partner
and signing the contract, and whether to undertake and fund the initial 3 work
streams to be delivered in partnership with IBM.
Recommendation
That the detailed report in Part II CAB03609 be agreed.
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Contents Background and Progress Summary
EssexWorks: Customers First, Transformation Programme In June 2009, Cabinet selected a preferred bidder to work with us to deliver our
Transformation Programme EssexWorks: Customers First. The selection of a
transformation delivery partner will help us continue to transform into an
organisation that delivers world class customer service, outstanding value for
money and achieve our overall corporate vision of providing the best quality of
life in Britain.
Section 8 of EssexWorks noted that the increased future demand for our
services, coupled with a tightening fiscal climate would result in a funding gap of
£200m per annum by 2013. Given that information, and following the global
economic crisis, there is cross-party consensus about the need for cuts in public
spending during the next few years. The Council’s funding gap is now likely to be
closer to £300m per annum.
The EssexWorks: Customers First Transformation Programme will enable us to
divert £300m per annum away from processes, property and procurement
increasing our ability to invest into front line services. This will be achieved by
identifying commonality, eliminating duplication and embedding an ethos of
focusing all of our efforts on increasing customer satisfaction. To build on these
ambitious goals, we required the additional capacity, capability and skills of a
delivery partner to help us deliver this change.
From 11 initial bidders, senior Members and senior officers selected two
companies to enter into detailed dialogue to further develop and evaluate their
proposals, senior Members from both the opposition parties also got the
opportunity to question the bidders.
In April 2009, the Council delegated power to the Cabinet to select a preferred
bidder.
In June 2009, Cabinet selected IBM as the preferred bidder. The Council then
entered an interim arrangement for early works with IBM with a view to enter into
the full Partnership Agreement at the appropriate time. During this period, the
Council has sought contractual clarification in order to secure mutually
acceptable contractual positions relating to price, scope and exit arrangements.
This period of clarification has now ended and the next step is to either reject or
sign the partnership agreement with IBM. On October 13th 2009 Council
delegated powers to Cabinet to make this decision. This report will provide all the
information required for Cabinet to make this decision. If the recommendations of
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this report are accepted IBM and ECC will formally enter a strategic alliance for 8
years and continue to work together towards achieving the outcomes set out in
our EssexWorks: Customer First programme and realise our vision of providing
the best quality of life in Britain.
Background papers
1. Council Paper dated 21st April 2009: EssexWorks Section 8, Our
Modernisation Agenda: Improving Our Services.
2. Cabinet Paper dated 23rd June 2009: CAB/025/09 (Part II)
EssexWorks: Customers First Delivery Programme
3. Key Decision dated 18th August 2009: FP/188/06/09 Interim Arrangement:
Essex Works Customer First
4. Council Paper dated 13th October 2009: Update - EssexWorks: Customers
First Transformation Programme.
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