Agenda item

Report of Corporate Director for Growth and City Development

Councillor Hayes, Executive Member for Housing and Planning, introduced the report.

Tony Sowter, Technical Innovation Manager, presented the report and stated the following;

a.  The existing works scheduler NEC console, used to allocate jobs for customers and assign trade colleagues to jobs, is not fit for purpose and needs replacing as soon as possible with an alternative works order management solution.

b.  The NEC scheduler (console) was implemented in October 2023 as part of a wider NEC enterprise project initiated by Nottingham City Homes. The objective being to reduce the number of IT systems used to manage and deliver the Housing property service.

c.  All of the intended property services work streams have not yet been migrated to NEC scheduler due to ongoing system and user issues that have emerged since go live, meaning we are still operating the Property service across multiple IT platforms. This continues to create issues for our customer service centre, other housing staff and customers, particularly on visibility of data, clear audit trails on what actions are being taken by who and when, and difficulties with agility of resources.

d.  The NEC works scheduler is underdeveloped, not fully dynamic, its configurability does not support our operating delivery model and, at times, is unstable, resulting in having to use paper-based run sheet schedules as a business continuity fall back.

e.  The NEC scheduler lacks automation, and we are using additional staffing resource to plan customer appointments, schedule trade colleagues to jobs and move works through different stages of the repairs journey process. We are unable to retrieve reliable and accurate performance data and works orders do not consistently close down after works are completed, meaning we are not confidently able to articulate what the repairs service actual performance is like.

f.  Due to system issues, we are trying to manage the performance of a service based on 25,000 properties, and an annual works order volume of 170,000 across all workstreams, on an excel spreadsheet which is both inefficient and ineffective. The majority of these issues were not evident in the project testing phase due to us not at the time operating on the latest version of NEC to test on. We were four versions behind due to our historical approach to implementing upgrades. NEC as a company despite lots of words of assurance have not provided us as a key housing client with the speed and level of support required to address the issues identified resulting in a loss of confidence in the partnership.

g.  This combination of factors is having a significantly negative impact on the Property service we are delivering including the levels of customer perception which has dipped since we went live with the NEC scheduler. The wellbeing of the team is being affected with increased refence being made to our internal IT systems as a reason for absence due to work related stress. Our existing arrangement is not sustainable, and we need to do something at speed to enable the wider transformation activities outlined in our service plan to take place and prevent any further deterioration of service.

h.  Due to the critical operational we have through our procurement colleagues proposed the use of G-Cloud as an existing OJEU compliant framework as a procurement solution rather than NCC completing its own tender process which will take time and resources.

i.  We have completed a range of activities with staff to identify key requirements for a replacement WOM system using the learning from the past few months. This has including viewing of a range of WOM systems available from other WOM supplies in G cloud framework. We created a resulting minimum criteria, used to shortlist potential systems and as the basis to complete an evaluation against work order management providers on the G-Cloud framework. The outcome resulted in the decision to recommend we procure the Total Mobile Ltd, WOM solution.

j.  This provides an established tried and tested works order management solution within the social housing sector and will provide the basics we need to give the Property service stability. In additional to the fully dynamic works order management solution the proposal will support the provision of video diagnostic, lone worker solution and data analytics.

k.  The company has a roadmap to service and product enhancement, including the use of artificial intelligence, which would support the NCC wider improvement agenda, linked to improved efficiency and effectiveness through automation of process.

l.  NCC have previously had a contract with Total Mobile Limited for a corporate lone worker system and one of our external contractors we are using to provide capacity for damp and disrepair uses  which has provide an opportunity to see system capabilities already on our own stock.Having previously worked with Total Mobile Limited we already have a number of data security and IT interfaces in place which will assist with timescales during the mobilisation stages.

m.  The Housing proposal will be funded initially during the remainder of the 2024/25 budget year through the use of Housing revenue account (HRA) reserves. Then we will include a revenue growth item in the annual budget setting process for 2025/26 to ensure that any recurring costs are built into annual budgets to ensure all costs for the WOM solution are in place. Delivery against the proposed annual efficiency saving of £1.9m/annum will form part of the success measures of the contract with Total Mobile Limited.

n.  This proposal to funding the housing element has been supported by the chief executive and HRA finance. The proposal will be included within the period 6 finance reporting paper to executive leadership. The contract is for a proposed total of 4 years as permissible under the framework agreement.

o.  The commercial model of Total Mobile Limited within the current version of G-Cloud is based on a percentage discount against volume of users, bundle of package purchased. Due to the size of the property service and scope of the works management solution this could be up to a 40% discount against the base rate.

p.  There is scope to include the NCC corporate lone worker solution which could provide further cost efficiencies on the overall contract price. As Total Mobile Limited use G-Cloud as the route to market for most of their public sector contracts they offer their most commercial offer through this route. Delays to approval of the proposal would result in cost increases as Total Mobile Limited have agreed to honour the current commercial model costs which would have been subject to an increase as of November 2024.

q.  Replacing the existing works scheduler will support NCC culture change ambitions. Total Mobile Limited has the functionality to provide a technological system to support works delivery through approved processes so we operate more efficiently and effectively. It will provide a performance management tool to facilitate agility of resource and demonstrate greater accountability. All can contribute to enhancing the customer and staff experience of the service.

Resolved to

(1)  approve funding of an up-to 4-year contract, at an estimated cost of £1.85m (£1.77m HRA and £88k General Fund), for a replacement works order management solution;

(2)  delegate authority to the Director of Property Services (Housing) to:

(a)  procure and award a contract of up to 4 years (on a 1+1+1+1 basis) to Total Mobile Limited for utilising the G-Cloud (version 13 Framework) for the provision of a works order management solution;

(b)  set up the required Contract Purchase Agreements to cover the works to be delivered;

(c)  raise purchase orders under the signed contract for the duration of the contract;

(3)  note the proposed efficiency savings over the potential contract term and that these are included as success measures within the contract with Total Mobile Limited;

(4)  explore opportunities within the contract terms for other service areas across the Council to gain potential financial benefits through volume discounts from Total Mobile Limited commercial model offered through G-Cloud.

Reasons for recommendations

r.  The proposed procurement route of Crown Commercial Services G Cloud 13 Framework agreement is FTS compliant and supports the need to move at pace to implement a works management solution that supports the delivery of the property service.

s.  The use of the G-Cloud framework provides a transparent pricing framework and ability to develop opportunities for efficiency and effectiveness as a means of further demonstrating value for money. This will include using the proposed efficiency savings as a success criterion within the contract document with Total Mobile Limited to ensure a focus on their delivery is sustained and contract extensions given.

t.  Funding from HRA reserves is requested as this proposal was not funded within the existing business as usual budget lines. It cannot be totally funded at present from any identified efficiency savings within approved budgets so will be reported as an overspend against agreed budgets. HRA reserves are in excess of £100m.

u.  The proposal outlined in the report takes into account applying lessons learnt form the implementation of the NEC enterprise project so for example the funding requests reflects the need to provide dedicated project staff and a fully developed project implementation plan.

v.  The Property team have the expert knowledge and self-awareness of current operating issues and would be able to work with the proposed project team and Total Mobile Ltd to implement a new works order management system that meets service needs and supports wider NCC improvement aspirations.

w.  The recommendations ensure that appropriate NCC internal governance and financial requirement are adhered to.

Other options considered

x.  We considered going out to open market tender rather than use of an existing framework as a means of driving down costs. Although cost is a clear criterion, we need to ensure this is not to the detriment of the product. Continuing with NEC would be cheaper than using Total Mobile Limited, but it does not provide a product that is fit for purpose and supports our service needs.

y.  We considered moving all services back to DRS works order management system as some of the services are still using this. As we are not operating on the latest version this would still require a significant upgrade. The latest version of DRS does not meet the minimum operating criteria we agreed for a replacement WOM system.

z.  Not doing anything is not an option as would lead to deterioration in overall service delivery. Based on current data it is likely that there would be increased absence from the workplace linked to system issues and work related stress. Staying as we would require increased staffing levels to manually manage resources and move works orders through the different stages of the repairs journey and to maintain multiple WOM systems. It would cost additional monies to continue with other IT systems as migrating all of our services to NEC scheduler in its current reiteration is not viable.