Atos Contract Scope Extension – Software Licence Management

Reference code: 
PCD 120
Date signed: 
09 January 2017
Authorisation name: 
Sophie Linden, Deputy Mayor, Policing and Crime

Executive summary

This paper requests approval to extend the Service Integration and Management (SIAM) contract with Atos to implement a software licence management service and approve funding of £1.86m over the extension period of 49 months.

Recommendation

The DMPC is asked to approve the contract extension of the SIAM contract with Atos for a period of 49 months from January 2017 and to approve funding of £1.86m to cover the cost of the extension.

Non-confidential facts and advice to the Deputy Mayor for Policing and Crime (DMPC)

1.    Introduction and background

1.1.    The MPS’s current software licence management solution is the minimum service, as prescribed by the contract. The MPS acknowledges that this inadequate and that a solution is required that will reduce the MPS’s risk of non-compliance and provide a service that will meet current and future needs.

1.2.    To address this the MPS is proposing to develop a solution consisting of three stages:

•    The set up and run of an interim compliance service
•    A Strategic Assessment Project and;
•    Run a full software management service

The above will provide the MPS with the ability to achieve better long term management of its software licences, with the potential to create savings in the future.

2.    Issues for consideration

2.1.    There have been a number of audits performed by the MPS’s software suppliers, which have identified gaps in the MPS’s software licence management. This has resulted in liabilities of over £1m. The MPS’s has an increased risk of further liabilities as their corporate licensing agreements are also used by their suppliers.

3.    Financial Comments

3.1    There is no budget provision for this contract extension to provide an enhanced software licence management service in the current or future years. 

The financial implications are shown below:

 

 

£000

£000

£000

£000

£000

£000

 

2016/17

2017/18

2018/19

2019/20

2020/21

Total

Interim service

102.9

291.7

291.7

291.7

243.1

1,221.1

Full managed service

321.3

66.6

88.8

88.8

74.0

639.5

 

424.2

358.3

380.5

380.5

317.1

1,860.6

3.2    Digital Policing are working with specialist advisors to identify savings from the fixed line telecoms contract and these potential savings are estimated to be in excess of £1m per annum. In addition, application rationalisation is likely to yield further savings in the region of £1m. It is proposed that these potential savings will be used to fund the £1.86m.

3.3    Digital Policing and Commercial Services will produce an Action Plan to confirm how the potential savings will materialise. Progress will be reported through regular financial monitoring.

3.4    The cost profile is based on the interim service beginning in January 2017 and running for three months, with the full service starting in July 2017.

4.    Legal Comments

4.1.    There are no legal implications arising from this report.

5.    Equality Comments

5.1.    There are no direct equality or diversity implications arising from this report

6.    Background / supporting papers

6.1.    None.