Decision details

Novation Of ICT Contracts From Serco Ltd To Peterborough City Council As Part Of The Serco Exit Plan - JUN20/CMDN/07

Decision Maker: Cabinet Member for Digital Services and Transformation

Decision status: Recommendations Approved

Is Key decision?: Yes

Is subject to call in?: Yes


The Cabinet Member is recommended to:


1.    Approve Peterborough City Council’s option to novate from Serco Ltd to the Council, any Third-Party contracts or licences as required for the efficient continuation of IT services by the Council upon expiry of the Serco Managed ICT Contract with effect from 1 October 2020, or earlier where essential, to ensure continuity of service delivery. .


Reasons for the decision:

On 1 October 2009 Peterborough City Council entered into the Managed ICT Contract with Serco Ltd, a long term partnership for the provision of IT services and wider business transformation by Serco for a contract period of 11 years. The Managed ICT Contract expires on 30 September 2020.


Upon commencement of the Managed ICT Contract a number of IT contracts between the Council and third parties were transferred to Serco. They became responsible for the performance of all obligations in relation to these IT services.   Over the duration of the Managed ICT Contract, Serco Ltd have procured further IT contracts in relation to upgrading of systems and infrastructure and the overall delivery of infrastructure and technologies to ensure delivery of the IT service to the Council.


Upon expiry of the Managed ICT Contract the Council will be delivering the IT service in-house.  The Council and Serco are presently in the Exit Phase of the Managed ICT Contract and working together to ensure an orderly and timely transfer of responsibility from Serco to the Council with the minimal interruption to IT Services.  As part of this exit phase, the work-stream of ‘licences and contracts’ has identified those IT contracts held by Serco which support the delivery of the IT service and where applicable have arranged for their novation to the Council.


The Council has the option to novate any such Third Party contracts or licences the Council requires for the efficient continuation of the IT services.  Whilst these IT contracts shall be novated to the Council to maintain continuity of IT service, there is procurement planning underway within the Council to ensure procurement of those contracts that are due to expire after the IT service is delivered in-house with effect from 1 October 2020.


Alternative options considered:

For the Council not to novate any Third Party contracts from Serco this would mean the Council having to simultaneously re-procure all of the IT services covered by these Third-Party contracts. This could lead to service disruption where such a move resulted in a large number of changes of system and/or removal of support on 1 October 2020. To ensure an orderly and timely transfer of responsibility from Serco to the Council with minimal interruption, disruption or degradation of IT services the provision included within the Managed ICT Contract to novate Third Party contracts required for the efficient continuation of the IT services shall be relied upon and exercised.


Interests and Nature of Interests Declared:


Background Documents:


Publication date: 24/06/2020

Date of decision: 24/06/2020

Effective from: 30/06/2020

Accompanying Documents: