Oracle - Agreement with Knowsley Metropolitan Borough Council.

The request was successful.

Dear Knowsley Metropolitan Borough Council (KMBC),

I am writing regarding financial systems that are utilised by KMBC.
It is my understanding that Oracle™ is currently in operation for use by staff on sites either owned, leased or managed by KMBC.

In view of this please advise the following:

When was Oracle™ implemented by KMBC?
What organisation is contracted to provide Oracle™ services to KMBC?
How was the contract advertised?
What was the evaluation process, including weightings?
What is the annual value, in English pounds, of the Oracle™ contract?
What is the term, in months, of the Oracle™ contract?
How many contract reviews are scheduled to be performed per annum?
How many contract reviews are actually performed per annum?
Does the contract contain a minimum service specification, such as a Service Level Agreement*?
What is the notice period, for either party, to terminate the contract?
When is the Oracle™ contract scheduled to be re-advertised?
How many Oracle™ licences are utilised by KMBC?
How many Oracle™ users are registered by KMBC?
What is the annual spend on maintenance** on the Oracle™ system?
What is the projected downtime*** per annum for the Oracle™ system?

Under current United Kingdom legislation Value Added Tax (VAT)**** is set by Her Majesty’s Revenue and Customs (HMRC) and is generally paid as an additional cost for goods and services that may be provided from one party to another.

In view of this:

Does KMBC reclaim any VAT from HMRC for services provided under the Oracle ™ contract?
If VAT is reclaimed, how does KMBC reinvest the reimbursement?

For the avoidance of doubt definitions are as follows:

*SLA - an agreement between the provider of a service and its users, which quantifies the minimum quality of service which meets business needs.
**Maintenance - the process of keeping something in good condition.
***Downtime - time during which a machine, especially a computer, is out of action or unavailable for use.
**** VAT - a tax on the amount by which the value of an article has been increased at each stage of its production or distribution.

Unless otherwise stated all questions contained herein will relate to when the contract became live.
For the purposes of this request live will be deemed to be when a Heads of Agreement or any other contractual document was signed that bound both parties to a legally binding contract, which was not subsequently rescinded.

I hereby acknowledge the use of a trademarked name in this Freedom of Information request.

Whilst I do not have to declare an interest, I am requesting this information as a private individual, and not as a representative or agent of any commercial organisation.

Yours faithfully,

Wayne Tully

Freedom of Information, Knowsley Metropolitan Borough Council

Dear Mr Tully,

Thank you for your email received on 9 September 2016 requesting information about Oracle.

I have recorded your request for information under reference F2016.09.2696.

This has been passed to the relevant service and you will receive a response by 7 October 2016.

In line with guidance published by the Information Commissioner’s Office, the council may make a charge for the provision of information – for example in order to cover the costs of postage (in line with the relevant postal charges) or charges for printing and copying (which will reflect photocopying charges levied by the council’s public libraries) or if this falls within the regulations of an EIR (Environmental Information).

You will be informed if a fee is to be applied before information is to be provided.

If you need further information please contact me.

Kind regards,

Freedom of Information
Knowsley MBC
Archway Road
Huyton
Knowsley
Merseyside
L36 9UX

show quoted sections

Freedom of Information, Knowsley Metropolitan Borough Council

Dear Mr Tully

 

Freedom of Information request F2016-09-2696

 

We have looked into your request for information about Oracle and our
response is detailed below:

 

 

·         When was Oracle™ implemented by KMBC? 1996

·         What organisation is contracted to provide Oracle™ services to
KMBC? Oracle DBA support (for Oracle Financials but also other council
Oracle database applications) is part of a larger managed service, which
also covers hardware leasing, management and operating system support.
Application support (access to upgrades, patches and technical support) is
included in the annual renewal of technical support services with Oracle
Corporation.

·         How was the contract advertised? Procurement of the managed
service was conducted using Further Competition using Crown Commercial
Service framework RM 1054 Technology Products Lot 1, so was advertised to
all eligible suppliers on that framework.

·         What was the evaluation process, including weightings? The
Further Competition was evaluated in line with the requirements of the
RM1054 framework.

·         What is the annual value, in English pounds, of the Oracle™
contract? The Oracle DBA support is part of a larger ‘platform’ managed
service, which also covers hardware leasing, management and operating
system support and therefore costs cannot be provided exclusively for this
element.

·         What is the term, in months, of the Oracle™ contract? The
managed service contract containing the DBA service is for 60 months.

·         How many contract reviews are scheduled to be performed per
annum? The managed service contract requires 4 contract reviews per annum
to be scheduled.

·         How many contract reviews are actually performed per annum? The
managed service contract delivers 4 contract reviews per annum.

·         Does the contract contain a minimum service specification, such
as a Service Level Agreement*? The managed service contract includes an
SLA.

·         What is the notice period, for either party, to terminate the
contract? The managed service contract is fixed term for 5 years.

·         When is the Oracle™ contract scheduled to be re-advertised? The
managed service contract is scheduled to be re-advertised in 2019.

·         How many Oracle™ licences are utilised by KMBC? 120 concurrent
for the Oracle Application Suite modules.

·         How many Oracle™ users are registered by KMBC? 1350 named users
of Oracle database / application server.

·         What is the annual spend on maintenance** on the Oracle™ system?
Application maintenance is included in the technical support services
annually renewed with Oracle Corporation (last year’s renewal was
£0.031m), DBA support costs are included in a managed service contract and
cannot be separated.

·         What is the projected downtime*** per annum for the Oracle™
system? 0.05%

·         Under current United Kingdom legislation Value Added Tax
(VAT)**** is set by Her Majesty’s Revenue and Customs (HMRC)  and is
generally paid as an additional cost for goods and services that may be
provided from one party to another. 

o   In view of this:

§  Does KMBC reclaim any VAT from HMRC for services provided under the
Oracle™ contract? Yes

§  If VAT is reclaimed, how does KMBC reinvest the reimbursement? The
Council does not budget for VAT as the amounts reclaimed are cost neutral,
we are merely reclaiming vat expenses already paid.

 

If you need further information please see contact details below.

 

Kind regards,

 

Freedom of Information

Knowsley MBC

Archway Road

Huyton

Knowsley

Merseyside

L36 9UX

 

This e-mail and any attachments are confidential. It may contain
privileged information and is intended for the named recipient(s) only. It
must not be distributed without consent. If you are not one of the
intended recipients, please notify the sender immediately and do not
disclose, distribute, or retain this email or any part of it and do not
take any action based on it.
Unless expressly stated, opinions in this email are those of the
individual sender, and not of Knowsley MBC. Legally binding obligations
can only be created for, or be entered into on behalf of, Knowsley MBC by
duly authorised officers or representatives.
Knowsley MBC excludes any liability whatsoever for any offence caused, any
direct or consequential loss arising from the use, or reliance on, this
e-mail or its contents. We believe but do not warrant that this e-mail and
any attachments are virus free. You must therefore take full
responsibility for virus checking and no responsibility is accepted for
loss or damage arising from viruses or changes made to this message after
it was sent. Knowsley MBC reserves the right to monitor and/or record all
e-mail communications through its network in accordance with relevant
legislation.

Dear Freedom of Information,

Thank you for your response, published on September 26th 2016. Please accept my apologies for my delayed acknowledgement.

However, based on your answers I wish to clarify a couple of points. I have reproduced your responses and placed my questions below to make the process easier.

· When was Oracle™ implemented by KMBC? 1996
· What organisation is contracted to provide Oracle™ services to
KMBC? Oracle DBA support (for Oracle Financials but also other council
Oracle database applications) is part of a larger managed service, which
also covers hardware leasing, management and operating system support.
Application support (access to upgrades, patches and technical support) is
included in the annual renewal of technical support services with Oracle
Corporation.
Was a cost analysis and business case presented in relation to lease versus buy options for hardware leasing?
· How was the contract advertised? Procurement of the managed
service was conducted using Further Competition using Crown Commercial
Service framework RM 1054 Technology Products Lot 1, so was advertised to
all eligible suppliers on that framework.

How many vendors are on Service Framework RM1054?
How many vendors responded to the advertisement?
How many vendors were shortlisted to provide a presentation , as to their capability to perform services for KMBC?
How many KMBC employees made up the project team?
Was a procurement professional the lead on the project team?
· What was the evaluation process, including weightings? The
Further Competition was evaluated in line with the requirements of the
RM1054 framework.
Are the weightings available for public viewing?
· What is the annual value, in English pounds, of the Oracle™
contract? The Oracle DBA support is part of a larger ‘platform’ managed
service, which also covers hardware leasing, management and operating
system support and therefore costs cannot be provided exclusively for this
element.

Based on this answer am I to assume that a “lump sum” is paid for services each month and KMBC do not have each element of the contract clearly identified in a payment schedule?
How can VAT be apportioned correctly?
Surely ORACLE has the capability to provide “catalogues” allowing for all contract items to be clearly identified and allow for a full audit trail on costs?
· What is the term, in months, of the Oracle™ contract? The
managed service contract containing the DBA service is for 60 months.
· How many contract reviews are scheduled to be performed per
annum? The managed service contract requires 4 contract reviews per annum
to be scheduled.
· How many contract reviews are actually performed per annum? The
managed service contract delivers 4 contract reviews per annum.
· Does the contract contain a minimum service specification, such
as a Service Level Agreement*? The managed service contract includes an
SLA.
If the contract has a SLA, why aren’t payments released in accordance with the services provided, as opposed to being “lumped together?”
· What is the notice period, for either party, to terminate the
contract? The managed service contract is fixed term for 5 years.
If I am correct you are stating that this contract does not have any clauses allowing either or both parties to repudiate or terminate the contract. Surely that cannot be correct?
By definition, the termination date of the contract would be at the end of the sixty (60) month term. I would expect this to be inserted into a contract, regardless of what the parties to the contract assume.
· When is the Oracle™ contract scheduled to be re-advertised? The
managed service contract is scheduled to be re-advertised in 2019.
When in 2019? There should be a project plan already in place for the procurement, or will this be actioned in 2019?
· How many Oracle™ licences are utilised by KMBC? 120 concurrent
for the Oracle Application Suite modules.
· How many Oracle™ users are registered by KMBC? 1350 named users
of Oracle database / application server.
· What is the annual spend on maintenance** on the Oracle™ system?
Application maintenance is included in the technical support services
annually renewed with Oracle Corporation (last year’s renewal was
£0.031m), DBA support costs are included in a managed service contract and
cannot be separated.
Why can’t costs be separated? Surely KMBC operates a transparent procurement function and as such, each segment of a contract should have a value attributed to it. How else would any person reviewing a contract understand if they are achieving value for their end users.
· What is the projected downtime*** per annum for the Oracle™
system? 0.05%
Has the Oracle system exceeded the downtime projection?
If yes, what liquidated damages are inserted into the contract and available to KMBC to impose on the contractor?
· Under current United Kingdom legislation Value Added Tax
(VAT)**** is set by Her Majesty’s Revenue and Customs (HMRC) and is
generally paid as an additional cost for goods and services that may be
provided from one party to another.
o In view of this:
§ Does KMBC reclaim any VAT from HMRC for services provided under the
Oracle™ contract? Yes
How? If KMBC does not segregate costs, how can KMBC reclaim VAT?
§ If VAT is reclaimed, how does KMBC reinvest the reimbursement? The
Council does not budget for VAT as the amounts reclaimed are cost neutral,
we are merely reclaiming vat expenses already paid.
I am aware that VAT is cost neutral. However, the funds do return, so where do they go, in terms of KMBC funding streams?

Yours sincerely,

Wayne Tully

Freedom of Information, Knowsley Metropolitan Borough Council

Dear Mr Tully,

Thank you for your email received on 27 September 2016 requesting information about Oracle Agreement.

I have recorded your request for information under reference F2016.09.2748.

This has been passed to the relevant service and you will receive a response by 25 October 2016.

In line with guidance published by the Information Commissioner’s Office, the council may make a charge for the provision of information – for example in order to cover the costs of postage (in line with the relevant postal charges) or charges for printing and copying (which will reflect photocopying charges levied by the council’s public libraries) or if this falls within the regulations of an EIR (Environmental Information).

You will be informed if a fee is to be applied before information is to be provided.

If you need further information please contact me.

Kind regards,

Freedom of Information
Knowsley MBC
Archway Road
Huyton
Knowsley
Merseyside
L36 9UX

show quoted sections

Wayne Tully left an annotation ()

queries to f2016.09.2696 have been allocated a new foi number:

Oracle -Agreement with Knowsley Metropolitan Borough Council - follow up to f2016.09.2696

reference: F2016.09.2748

Freedom of Information, Knowsley Metropolitan Borough Council

Dear Mr Tully
 
Freedom of Information request F2016-09-2748
 
We have looked into your request for information about IT Systems and our
response is shown below
 
 
·         When was Oracle™ implemented by KMBC? 1996
·         What organisation is contracted to provide Oracle™ services to
KMBC? Oracle DBA support (for Oracle Financials but also other council
Oracle database applications) is part of a larger
managed service, which also covers hardware leasing, management and
operating system support. Application support (access to upgrades,
patches and technical support) is included in the annual renewal of
technical support services with Oracle Corporation.
                SQ1 Was a cost analysis and business case presented in
relation to lease versus buy options for hardware leasing? Yes
·         How was the contract advertised? Procurement of the managed
service was conducted using Further Competition using Crown Commercial
Service framework RM 1054 Technology Products Lot 1, so
was advertised to all eligible suppliers on that framework.
SQ2 How many vendors are on Service Framework RM1054? This information is
publically available on the Crown Commercial Services website
SQ 3 How many vendors responded to the advertisement? Nineteen suppliers
responded to the expression of interest with one supplier submitting a
full bid
SQ 4 How many vendors were shortlisted to provide a presentation, as to
their capability to perform services for KMBC? One
SQ 5 How many KMBC employees made up the project team? Three
SQ 6 Was a procurement professional the lead on the project team? Yes
·         What was the evaluation process, including weightings? The
Further Competition was evaluated in line with the requirements of the
RM1054 framework.
SQ 7 Are the weightings available for public viewing? The bid was scored
against the predetermined weighting process with 66 technical and
compliance questions (covering major platform requirements; supplementary
platform requirements; implementation and migration; managed service;
commercial, value add and other considerations; and case studies) and
scored 48% of the 60% available. The remaining 40% of the evaluation
related to cost and the Council made a 25% saving on the previous cost for
the lease and support.
·         What is the annual value, in English pounds, of the Oracle™
contract? The Oracle DBA support is part of a larger ‘platform’ managed
service, which also covers hardware leasing, management and
        operating system support. Support is a single figure that covers
all databases for applications hosted on the servers; therefore costs
cannot be provided exclusively for the Oracle element.
SQ 8 Based on this answer am I to assume that a “lump sum” is paid for
services each month and KMBC do not have each element of the contract
clearly identified in a payment schedule? The payment is split between
leasing and support, with the latter covering all aspects of support
including Solaris and Oracle DBA for all applications hosted on the
platform. Support cannot be split to specific applications. Payments are
annual.
SQ 9 How can VAT be apportioned correctly? VAT is coded to a central
code and the service elements are charged with the net amount. The payment
is split between type of service delivered and therefore can be
apportioned correctly.
SQ 10 Surely ORACLE has the capability to provide “catalogues” allowing 
for all contract items to be clearly identified and allow for a full audit
trail on costs? The payment is split between leasing and support, with
the latter covering all aspects of support including Solaris and Oracle
DBA for all databases hosted on the platform. Support cannot be split to
specific applications.  
·         What is the term, in months, of the Oracle™ contract? The
managed service contract containing the DBA service is for 60 months.
·         How many contract reviews are scheduled to be performed per
annum? The managed service contract requires 4 contract reviews per annum
to be scheduled.
·         How many contract reviews are actually performed per annum? The
managed service contract delivers 4 contract reviews per annum.
·         Does the contract contain a minimum service specification, such
as a Service Level Agreement*? The managed service contract includes an
SLA.
SQ 11 If the contract has a SLA, why aren’t payments released in
accordance with the services provided, as opposed to being “lumped
together?” The support payments cover all aspects for Solaris and Oracle
DBA for all applications hosted on the platform. Support cannot be split
to specific applications.  
·         What is the notice period, for either party, to terminate the
contract? The managed service contract is fixed term for 5 years.
SQ 12 If I am correct you are stating that this contract does not have any
clauses allowing either or both parties to repudiate or terminate the
contract. Surely that cannot be correct? The contract was awarded for a
month 60 period with lease payments split across the entire term. The
standard RM1054 contract does contain provisions for early termination
under certain circumstances and a model contract can be viewed on the
Crown Commercial Service website.
SQ 13 By definition, the termination date of the contract would be at the
end of the sixty (60) month term. I would expect this to be inserted into
a contract, regardless of what the parties to the contract assume. The
contract term of 60 months is included in the contract.
·         When is the Oracle™ contract scheduled to be re-advertised? The
managed service contract is scheduled to be re-advertised in 2019.
SQ 14 When in 2019? There should be a project plan already in place for
the procurement, or will this be actioned in 2019? Procurement routes
will be discussed in quarter 3 or 4 of 2018 with the contract
re-advertised in quarter 1 or quarter 2 of 2019.
·         How many Oracle™ licences are utilised by KMBC? 120 concurrent
for the Oracle Application Suite modules.
·         How many Oracle™ users are registered by KMBC? 1350 named users
of Oracle database / application server.
·         What is the annual spend on maintenance** on the Oracle™ system?
Application maintenance is included in the technical support services
annually renewed with Oracle Corporation (last year’s
        renewal was £0.031m), DBA support costs are included in a managed
service contract and cannot be separated.
SQ 15 Why can’t costs be separated? Surely KMBC operates a transparent
procurement function and as such, each segment of a contract should have a
value attributed to it. How else would any person reviewing a contract
understand if they are achieving value for their end users. Oracle
licensing is split and the figure has been provided for Oracle Financials.
The support payments cover all aspects for Solaris and Oracle DBA for all
applications hosted on the platform, support cannot be split to specific
applications.
·         What is the projected downtime*** per annum for the Oracle™
system? 0.05%
                 SQ 16 Has the Oracle system exceeded the downtime
projection? No
                SQ 17 If yes, what liquidated damages are inserted into
the contract and available to KMBC to impose on the contractor? Not
applicable
·         Under current United Kingdom legislation Value Added Tax
(VAT)**** is set by Her Majesty’s Revenue and Customs (HMRC)  and is
generally paid as an additional cost for goods and services
        that may be provided from one party to another.
                In view of this:
                Does KMBC reclaim any VAT from HMRC for services provided
under the Oracle™ contract? Yes
                 SQ 19 How? VAT on all invoices is coded to a central
code and then the total amount on this code is reclaimed on the Council’s
monthly VAT return to HMRC.
                 SQ 20 If KMBC does not segregate costs, how can KMBC
reclaim VAT? See answers SQ9 and SQ19 above.
                If VAT is reclaimed, how does KMBC reinvest the
reimbursement? The Council does not budget for VAT as the amounts
reclaimed are cost neutral, we are merely reclaiming VAT expenses already
            paid.      
SQ 21 I am aware that VAT is cost neutral. However, the funds do return,
so where do they go, in terms of KMBC funding streams? Service Budgets
are set on the net amounts.  All VAT is charged to a central code and once
the vat is reimbursed it offsets the expenditure on this central code. 
VAT does not form one of the Council’s funding streams.
 
 
If you need further information please see contact details below.
 
Kind regards,
 
Freedom of Information
Knowsley MBC
Archway Road
Huyton
Knowsley
Merseyside
L36 9UX
 
 
 
This e-mail and any attachments are confidential. It may contain
privileged information and is intended for the named recipient(s) only. It
must not be distributed without consent. If you are not one of the
intended recipients, please notify the sender immediately and do not
disclose, distribute, or retain this email or any part of it and do not
take any action based on it.
 
Unless expressly stated, opinions in this email are those of the
individual sender, and not of Knowsley MBC. Legally binding obligations
can only be created for, or be entered into on behalf of, Knowsley MBC by
duly authorised officers or representatives.
Knowsley MBC excludes any liability whatsoever for any offence caused, any
direct or consequential loss arising from the use, or reliance on, this
e-mail or its contents. We believe but do not warrant that this e-mail and
any attachments are virus free. You must therefore take full
responsibility for virus checking and no responsibility is accepted for
loss or damage arising from viruses or changes made to this message after
it was sent. Knowsley MBC reserves the right to monitor and/or record all
e-mail communications through its network in accordance with relevant
legislation.
 

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