Agenda item - Oracle upgrade to Fusion

Agenda item

Oracle upgrade to Fusion

Decision:

Cabinet:

 

1.     Approved the implementation and upgrade from our current Oracle version to the Oracle Cloud to Go Live by April 2020.

 

2.     Approved a budget and allocation of funding of £4.5 million from the capital programme to be funded through the government’s Flexible Use of Capital Receipts scheme for Transformation Projects that deliver an ongoing saving.

 

3.     Approved the award of :

-Oracle Fusion Subscription licence to Oracle as a direct award with VEAT which would be a 10 year contract for a total value of £4.343m   

-A Contract to Evosys off G-Cloud 10 framework  as implementation partner to implement the upgrade for a total value of £1.490m

 

4.     Approved entering into a shared support arrangement with London Borough of Lambeth to provide expert support at the cost of £0.2m.

 

5.     Delegated authority to the Council’s Chief Financial Officer (s151 Officer)

- to award a change management contract to embed the Clouds new ways of working in  Havering, as assessment of this will be made once the project is under way and a decision will be made to see if external support is required, £0.3m is budgeted for this activity

- in consultation with the Monitoring Officer to approve the final forms of contract and entering into such agreements necessary to give effect to the recommendations detailed in this report.

 

 

 

 

Minutes:

The report was introduced to Cabinet by the Cabinet Lead Member for Finance and Property, Councillor Roger Ramsey. This detailed the contract award in relation to the upgrade from the current Oracle Corporate Enterprise Resource Planning (ERP) system platform to the next generation platform known as Fusion, Oracle’s cloud product.  The Oracle system is currently used by the Council to manage business critical functions such as paying staff and suppliers.

The full business case for the upgrade of the system is set out in Appendix A of the report.

 

Currently the Oracle software is hosted by Capgemini as part of the One Oracle T-Gov2 agreement created when six London Boroughs signed a hosting agreement in 2012.  Newham joined as the seventh partner subsequently.  Newham and Havering are now the only remaining parties to that agreement as the other Boroughs have moved over to Fusion Cloud leaving the cost of the platform to be borne by Havering and Newham only.

 

The new Fusion Cloud system will allow for a standardisation of processes, resilience in technology and certainty in relation to costs.  It allows an increased integration of systems which will support Havering’s efficiency agenda. It will also provide an improved user experience and enhance internal control.  The Cloud is now a well-established way of hosting software.

The options available have been evaluated and a direct award to Oracle via a VEAT notice is recommended to Cabinet for the Oracle Software subscription for a period of five years plus an option to extend for a further five years.

 

Over a period of ten years, it is expected that the project will save between £5 million and £11.5 million.  Cabinet went through the business case and project costs as set out in the report.

 

Cabinet:

 

1.     Approved the implementation and upgrade from our current Oracle version to the Oracle Cloud to Go Live by April 2020.

 

2.     Approved a budget and allocation of funding of £4.5 million from the capital programme to be funded through the government’s Flexible Use of Capital Receipts scheme for Transformation Projects that deliver an ongoing saving.

 

3.     Approved the award of :

-Oracle Fusion Subscription licence to Oracle as a direct award with VEAT which would be a 10 year contract for a total value of £4.343m   

-A Contract to Evosys off G-Cloud 10 framework  as implementation partner to implement the upgrade for a total value of £1.490m

 

4.     Approved entering into a shared support arrangement with London Borough of Lambeth to provide expert support at the cost of £0.2m.

 

5.     Delegated authority to the Council’s Chief Financial Officer (s151 Officer):

 

 

·       to award a change management contract to embed the Clouds new ways of working in  Havering, as assessment of this will be made once the project is under way and a decision will be made to see if external support is required, £0.3m is budgeted for this activity

 

·       in consultation with the Monitoring Officer to approve the final forms of contract and entering into such agreements necessary to give effect to the recommendations detailed in this report.

 

 

 

 

Supporting documents: