Agenda item

Report attached.

Councillor Joyce Plummer, Portfolio Holder Resources, reported on a proposal to waive standing order G7, as to contracts over £75,000, to upgrade the Council’s Payments and Income Management System.  The contract would be for a period of five years.

Approval of the report was not deemed a key decision.

Reason for Decision

The existing software supplier is unable to support the outdated Paris software beyond the 12^th January 2020 and the tight timescale to implement and test a new software system with the same functionality that also meets the requirements of the Payment Card Industry Data Security Standard (PCI DSS), means that officers have to identify a successful supplier by the 30^th September 2019.

The report refers to the corporate software known as Paris used throughout the Council for the collection of debit and credit card payments via the Council’s website, mediated payments processed by Council staff over the phone and the 24/7 automated telephone service.  Additionally the software receives and processes all payment files from the Council’s bank accounts, Pay Points, Enforcement Agents and the Department for Work and Pensions.  The processing of these files includes validation and production of separate cash files for numerous services and systems in use throughout the Council, including an interface to the main accounting system.  The overall annual income that is processed is over £180m, which includes significant amounts in Council Tax and business Rates on behalf of the major preceptors, the Government, Lancashire County Council, the Lancashire Police and Crime Commissioner and the Lancashire Combined Fire Authority.

This area of business is subject to the ever increasing demands of the Payment Card Industry Data Security Standard (PCI DSS) and the upgrade will result in the provision of a fully hosted (by the supplier) solution which will meet the required standards and reduce the burden on the Council to demonstrate on-going compliance with these requirements through the required annual self-assessment process which is required by the Council’s Merchant Acquirer (Worldpay).  The consequences of any data breach could involve an imposition of significant fines on the Council, cause reputational damage, and even lead to the withdrawal of the Councils’ ability to process debit and credit card payments.

To improve the Council’s PCI DSS compliance and protect both the Council and its customers from potential data breaches, it is necessary to upgrade both the Payments and Income Management systems.

Upgrading the Payments and Income Management systems will provide the Council with the tools to better consolidate all its payment processes and improve compliance to PCI DSS going forward, as well as satisfying a number of other business requirements which the current systems do not meet.

Failure to place a contract for a replacement system by 30^th September will almost certainly place the Council in a position where it cannot accept debit and credit card payments from 13^th January, 2020 for an unknown period.  This is a category 1 risk to the Council from a financial and reputational perspective.

The report included further information on the following matters;

• Current contract and existing system;
• Proposed replacement solution;
• Evaluation of quotations;
• Main issues and procurement options; and
• Financial / budget implications.

Alternative Options considered and Reasons for Rejection

Alternative methods of procuring a supplier were considered not acceptable due to the restrictive timescale and the lack of alternative providers beyond the three from whom quotations are to be sought.

Resolved                      (1)  That the Cabinet waive contract standing orders G7 (for contracts with a value of over £75,000) in not using the open tendering procedure with regard to this purchase on the grounds that it represents best value for money for the Council and the timescale does not allow a full tendering process.

(2)  Authorise the Deputy Chief Executive to accept the most economically advantageous proposal from three quotations and to award the successful supplier with a contract for a period of five years.