Procuring and implementing new Financial and/or Line of Business software solutions is a challenge for any organisation. These are typically once in a decade expenditure that demand more than just a replacement of an existing system if they are to provide a return on what is a large investment. They demand changes in business processes and sometimes structural and cultural changes as part of a wider business transformation. The process of agreeing the vision, forming the Client-side team, defining business need in the right way, and then procuring the right solution and implementation partner is crucial to success.
The skills required for this project initiation and procurement stage are diverse. Expertise in the Business strategy, business operations, Financial management, IT solutions, IT operations and procurement are all required.
For Third Sector organisation there can be an added complexity, Public sector procurement rules. When Public sector bodies procure goods and services, they must comply with UK legislation that applies the European Union’s rules on public procurement.
Certain Third Sector bodies may come within the definition of a contracting authority. Contracting authorities include organisations that exist “for the specific purpose of meeting needs in the general interest, not having an industrial or commercial character” and are mainly financed by or subject to “management supervision” by another contracting authority. The rules also apply to charities whose boards have more than half their members appointed by another contracting authority. Each NFP must work out whether it is in such a relationship.
If Public sector procurement rules do apply then there is the challenge of deciding what is the best vehicle to procure the solution. This is far from easy.
At the highest level there is a decision to be made about whether to find and use an existing, accessible framework agreement, which may sound appealing as it can shorten and simplify the procurement process. But what if the solution that would best meet your requirements is not on available frameworks? The IT solutions market changes rapidly so a framework can quickly become outdated. What if rules around using the framework and contracting through the framework do not lend themselves to finding and contracting appropriately with the best vendor for the type of solution required. G-Cloud 11, for example, while being targeted as a comprehensive framework for Cloud based solutions, has many restrictions that do not sit easily with those seeking to procure high value, long term Enterprise software solutions. These may or may not be addressed in G-Cloud 12.
In some instances it may be best to avoid the lure of frameworks and undertake a direct OJEU procurement. There is then the decision on what is the most appropriate procurement approach: Open procedure, Restricted, Competitive Negotiated or Competitive Dialogue? The answer of course is ‘it depends’. The secret to success is understanding clearly what you want in the promised land and the available routes to getting there.
If you recognise these challenges and would like to discuss how ITSS Limited can help you procure and transform your business with IT solutions then please get in touch.
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