Councillor Dana Carlin, Cabinet Member for Finance and Local Investment, approved the extension of a contract for secure printing and postal services with DSI Billing Services Limited. This extension will provide these services for Revenues, Benefits, and Housing-related statutory services for up to two years, with a total contract value of £1.6 million.

DSI Billing Contract Extension

Councillor Dana Carlin approved the extension of a contract with DSI Billing Services Limited for secure printing and postal services. This decision allows for a one-year extension from 31 January 2024 to 30 January 2025, with an annual cost of £400,000, bringing the cumulative contract value to £1.2 million. Furthermore, authority has been delegated to the Assistant Director, Corporate and Customer Services, in consultation with Councillor Carlin, to approve a further one-year extension from 31 January 2025 to 30 January 2026, also for £400,000 per annum, potentially reaching a total contract value of £1.6 million.

The current contract had expired on 31 January 2024. DSI Billing Services Limited specialises in high-volume mail solutions for Revenues, Benefits, and related services, handling the printing of Council Tax, Business Rates, and Housing Benefit overpayment bills and recovery notices, as well as printing for the Housing Service.

The report presented to Councillor Carlin highlighted that the contract extension would maintain a fixed unit cost for production, shielding the council from index-linked price increases and preserving economies of scale even as the volume of outbound correspondence decreases. The only variable cost is postage, which is determined by Royal Mail. The unit cost for the service under the new contract remains the same as the current one. This procurement aligns with the council's wider digital strategy, allowing other services to potentially benefit from this hybrid mail offer.

An alternative of a full tender exercise was discounted due to the time required for implementation, with procurement through the CCS G-Cloud 12 framework¹ being seen as a more efficient route that leverages accumulated pricing. The option to do nothing was not feasible as the existing contract had expired and the council has a statutory obligation to issue notices for Revenues and Benefits under the Local Government Finance Act 1992².

During the meeting, Councillor Carlin queried whether this was the best contract available. Officers assured her that several other local authorities also procured services from the same supplier. They also stated that a detailed analysis would be conducted before the next renewal to ensure it remains the most advantageous contract for the council's needs. It was also explained that this contract operates on a pull-down basis, meaning the council only pays for the services used, and figures had come in below the maximum contract value.

The funding for this contract extension is covered by the existing service budgets for Revenues, Benefits, and Housing. The decision contributes to the Corporate Delivery Plan 2022-2024, specifically supporting outcomes related to effective resident communication and ease of digital interaction. While the volume of posted letters has a carbon impact, the council communicates electronically where possible and offers digital notification options. A new customer account and e-form suite is planned for delivery by August 2024, alongside an e-notification campaign, which is expected to further reduce the carbon footprint associated with postal deliveries.