Renewal of contract for Council HR/Payroll system

The Director of Law and Corporate Services has decided to approve the award of a new contract to Zellis UK Ltd for HCM (Human Capital Management) & Payroll software and associated services for a 3 year term with an additional 1 year option by way of a direct award through a Call-Off Contract via the G-Cloud 13 Framework Agreement (RM1557.13) at a total cost over the 3 years of £1,003,500.

1.1  The contract for the Councils’ current Payroll & HR system runs until December 2024 after which time it needs to be renewed if employees, members and commissioning schools employees are to be paid after this date. The renewal at that time was planned to be through Call-Off Contract for the G-Cloud 13 Framework Agreement (RM1557.13).

1.2  The annual pricing structure of the G-Cloud 13 Framework Agreement is cheaper than our current contract annual price. Zellis have agreed to allow the council to transfer to the G-Cloud 13 contract early which creates a financial saving of £100k per annum and allows the council to implement additional functionality sooner which in turn will provide further operational efficiency opportunities.

2.1  Do nothing. There is a requirement for this contract to be renewed before January 2025. If renewed later in 2024 the G-Cloud 14 catalogue will be in place which will almost certainly be more expensive due to inflation.