Consideration was given to the report of the Managing Director, oneSource, detailing the arrangements for One Oracle after July, 2018.

The Director of Finance (oneSource) outlined the current and proposed position to Cabinet.

The current contract with Capgemini for the provision of Havering’s One Oracle Finance, HR and Payroll system expires in July 2018 and so alternative arrangements as details in the report are required.

There is an additional cost of £30,000 per year and a lump sum set up cost of £55,000. This will be funded from the Havering’s 2018/19 ICT revenue funding.

Other options have been considered as follows:

• The potential option of an open tender process for the One Oracle R12.1 solution was discounted as there was insufficient time to run such a process and for an alternative provider to reprovision the solution onto their own infrastructure before July 2018. It was unlikely that the market would be interested in responding to such a process as the Oracle R12.1 solution will not be maintained by Oracle after December 2021 and so the lifespan of any R12.1 contract would be severely limited.
• A further potential option of oneSource hosting the One Oracle R.12 solution within its own ICT infrastructure was also considered but discounted. This would require a new procurement exercise to be undertaken, similar to the one undertaken by Brent already, to find a partner to facilitate the transfer from Capgemini. There was insufficient time available to undertake such procurement. There was also insufficient time to design, cost and implement an on-premises solution within oneSource’s ICT infrastructure. There was no assurance that the cost of such a solution would be less than the cost of the service on offer from Capgemini.

For the reasons set out in the report,

Cabinet:

• AGREED that Havering enter into a contract with Capgemini, if possible through a Crown Commercial Services G-Cloud framework for the One Oracle R12.1 solution for a period of at least one year.

• AGREED that the resources in relation to Havering’s One Oracle Shared Applications Support Team be transferred to oneSource at the appropriate time.

• AGREED The additional budget required per annum of £210,000 will need to be identified from the oneSource ICT budget (currently under review) in relation to the additional cost above base budget of the new contract with Capgemini, due to an ongoing shortfall in the current budget for One Oracle (the shortfall is being met from one-off funding from the Strategic Reserve in 2017/18)

• DELEGATED to the Managing Director, oneSource, authority to finalise the contractual arrangements with Capgemini.