Subject:
|
Housing Asset Management IT System
Replacement
|
Date of Meeting:
|
22 September 2021
7 October 2021 – Policy & Resources Committee
|
Report of:
|
Executive Director Housing,
Neighbourhoods & Communities
|
Contact Officer Name:
|
Ododo Dafe / Mo Lawless
Tel: 01273 295975
|
Email:
|
Ododo.dafe@brighton-hove.gov.uk
mo.lawless@brighton-hove.gov.uk
|
Ward(s) affected:
|
All
|
FOR GENERAL
RELEASE
1
PURPOSE OF REPORT AND POLICY CONTEXT
1.1
The Council Housing Revenue Account
(HRA) Asset Management Strategy acts as a link between
Housing Strategy priorities and investment programmes and reflects
the Housing Committee Work Plan 2019-23. The key objectives
of the current Asset Management Strategy are to:
·
Provide a framework for investment and maintenance of homes and
neighbourhoods to provide safe, good quality housing and support
services.
·
To invest in zero carbon initiatives to support the city’s
commitment of becoming carbon neutral by 2030.
·
Ensure financial viability of the HRA in the long and the short
term.
1.2
An asset management IT system is required
to manage stock information on various asset types, including
dwellings, blocks, garages, plant, and equipment. It is used to
record details of the asset, the life of the asset and its
components, to record the condition of assets and plan future
investment and repairs.
1.3
The Housing service is seeking approval
to delegate authority to the Executive Director, Housing,
Neighbourhoods and Communities to procure a new asset management IT
system and award a contract to the preferred supplier. A
compliant procurement process to replace the current Rowanwood
asset management IT system (APEX) is required and the council needs
to ensure it is getting the best value for money and is using the
most efficient system to manage its council housing stock.
1.4
We require the asset management IT system to:
i)
Hold key information on housing assets to enable the council to
plan, resource, fund and manage the condition of all its assets,
for example estates, blocks of flats, individual properties, and
property elements such as boilers and water heaters.
ii) Give an
in-depth, real-time view of the council’s housing stock
information in one place, and enable timely, confident, and
accurate decision making in forecasting and financial
planning.
iii)
Ensure properties meet current
legislative, compliance, regulatory and corporate standards with
efficient and effective automated processes.
iv) Support
the council in delivering on its’ asset management strategy
and the council’s objective of being carbon neutral - linked
to energy and environment sustainability.
1.5
This report also seeks approval of the
estimated project costs required to procure and implement a new
asset management system.
2
RECOMMENDATIONS:
2.1
Housing Committee agree and then recommend to Policy &
Resources Committee:
2.2
That the Executive Director Housing,
Neighbourhoods & Communities is granted delegated authority
to:
i)
Procure a new asset management IT system
for the councils’ housing service.
ii)
Award a contract with the preferred
supplier for a period of five years, with an option to extend by
two years subject to satisfactory supplier performance.
2.3
Approval of a £0.515m budget to be
added to the Housing Revenue Account (HRA) capital programme for
the project’s procurement and implementation
activity.
3
CONTEXT / BACKGROUND
INFORMATION
Strategic Approach – IT and Housing
3.1
As previously reported to Housing Committee, key to the
Housing service IT transformation
programme is the replacement of the councils’ lead housing
management system. The first phase of this work was implemented in
July 2021. Other priorities include to replace the current works
management system provided by Mears as part of the repairs
insourcing, and to replace the asset management system.
In procuring a replacement asset management IT system it is
important that there is an interface with other Housing IT
systems.
3.2 The
following corporate and departmental principles and priorities are
driving Housing’s IT transformation
programme:
i)
A Modernising Council - to
have effective and efficient IT solutions that are robust and integrated in delivering
services, streamlined to improve customer services, provide value
for money and technological innovation.
ii)
Our Customer Promise
– having joined-up integrated
systems ensures services are provided right first time to improve
customer satisfaction.
iii)
To ‘Make our city carbon
neutral by 2030’ – good asset information will
help the Council plan for and meet the challenges of retrofitting
its housing stock to contribute to being carbon neutral by
2030.
iv)
To ‘Improve access to good
quality housing - a city to call home’ – robust
information and data management will help manage risk and ensure
compliance.
3.3 The current contract with
Rowanwood is an interim arrangement to allow time to carry out the
procurement and project implementation activity.
3.4
Procuring a new system presents
opportunity to modernise and deliver automated and more efficient
ways of working. A new system with provide better mobile
working capabilities for staff and contractors as well as improving
our asset management data and interfacing into other housing
systems, bringing information together to better manage strategic
planning and provide full active asset management functionality
whilst also ensuring effective day-to-day management and
maintenance. This will support greater intelligence-based
asset management decisions giving a greater understanding of the
needs of our customers and their homes.
Procurement Approach
3.5
Procurement advice has been sought to
ensure that the Council achieves value for money and is compliant
with both The Public Contracts Regulations 2015 and the
Council’s Contract Standing Orders (CSOs).
3.7 The
estimated costs of purchasing, implementing the new system and the
project team is £0.515m for which budget approval is being
sought at recommendation 2.3. The national framework
agreements procurement terms and conditions are based on a
five-year contract, plus option to extend a further 2 years.
3.8
The council has undertaken soft market
testing of asset management systems where key Housing and ICT staff
have observed demonstrations from both leading and emerging
software providers in the market that has shown that there are many
IT systems already available to buy. Planning, specification, procurement and
implementation of the asset management IT system is being led by
a Housing Systems Project Manager working as part of our
wider Housing Systems Programme Team with the support of relevant
corporate services. This work is overseen by a wider Housing
ICT Programme Board.
3.9
The specification for the system
will fit with the emerging corporate IT strategy and comply with
corporate data and accessibility standards. These will
require data integration, system interoperability and inclusive
accessibility.
3.10 If recommendations are
approved, based on using the framework agreement procurement route,
the following provisional timescales will apply.
i)
winter
2021
procurement activity starts
ii)
spring to summer
2022
procurement tender and
evaluation
iii)
summer
2022
contract awarded and
mobilisation
iv)
summer 2022 to spring
2023
pre-implementation activities
v)
spring
2023
go-live with a new system
4
COMMUNITY ENGAGEMENT &
CONSULTATION
4.1
This is not required as this is not a
customer facing IT system.
5
CONCLUSION
5.1
The Council has a requirement to ensure that its systems and
software are fit for purpose and to manage its housing stock
effectively and efficiently.
5.2
Procurement of a new system will lead to
strategic and operational improvements in the Council’s
council housing asset management responsibilities.
5.3
Due to the length of the current contract the service is bound to
test the market and ensure a compliant procurement process is
carried out.
6
FINANCIAL & OTHER
IMPLICATIONS:
Financial Implications:
6.1
Procurement of this new IT system will
enable the service to secure a system which is fit for purpose and
ensures value for money for the landlord service.
6.2
The HRA contains over 14000 council
dwellings and other commercial properties as well as plant and
equipment valued at over £900m. An asset management system is
required to manage stock information on various asset types,
including dwellings, blocks, garages, plant, and equipment. It is
used to record details of the asset, the life of the asset and its
components, to record the condition of assets and plan future
investment and repairs. Managing and maintaining council housing to
a good standard and investing in its longer-term sustainability is
integral to the long-term sustainability of the HRA and informs the
HRA 30-year business plan.
6.3
The estimated costs of purchasing,
implementing the new system and the project team is £0.515m
for which budget approval is being sought at recommendation
2.3. This will be added to the HRA capital programme and
funded by either HRA reserves, direct revenue funding, borrowing or
a combination thereof.
6.4
Funding is already built into the HRA
revenue budget for the annual support and maintenance of the
current system. These on-going costs are not expected to be
significantly higher than the current support and maintenance costs
(estimates of a maximum increase of £8,000 per year). Any
additional budget requirements when a new system is implemented
will be reviewed and included as part of the annual budget setting
process. The benefits of a new integrated asset management system
should ensure that any extra costs annual support and maintenance
costs will be good value for money for the HRA.
Finance Officer Consulted: Monica
Brooks
Date: 03/09/21
Legal Implications:
6.5
The authority of Policy & Resources
Committee is required for matters with corporate budgetary
implications, such as the award of a contract for a new asset
management IT system by the Council where it is proposed to use a
proportion of HRA reserves.
6.6
The Council’s CSOs require that
authority to enter a contract valued at £500,000 or more be
obtained from the relevant committee prior to commencing
procurement activity and inviting expressions of interest from
potential bidders.
6.7
The procurement of contracts through
framework agreements must comply with all relevant UK public
procurement legislation as well as the Council’s
CSOs.
Lawyer Consulted:
Barbara Hurwood Date
16-06-2021
Equalities
Implications:
Sustainability Implications:
6.9
A new asset management IT system would
have the following sustainability implications:
·
Improved asset information will help the Council plan for and meet
the challenges of retrofitting our housing stock to contribute to
being carbon neutral by 2030.
·
Improved our asset management data and interfacing into other
housing systems, assists our strategic planning and provides full
active asset management functionality whilst also ensuring
effective day-to-day management and maintenance. This will mean
that we are more aware of when items are due for maintenance,
meaning that where possible they can be maintained/repaired rather
than replaced.
Public Health
Implications:
6.10
None arising directly from this
report.
Crime & Disorder
Implications:
6.11
None arising directly from this
report.
Risk and Opportunity Management
Implications:
6.12
None arising directly from this
report.
Corporate / Citywide
Implications:
6.13
None arising directly from this
report.
SUPPORTING
DOCUMENTATION
None