CGI deal extension not universally welcomed amongst elected members

The council administration claims that the extension, one of the longest in the IT firm’s history, will help the region realise its vision of becoming the UK’s first “Smart Rural Region”, although the leader of the SNP-led opposition, Stuart Bell, has accused the council administration of a “lack of transparency”, saying he believes the contract with the Canadian firm to be far too long.

CGI will open a new office in Tweedbank in 2021, which the company says will become a “centre of excellence”.

In a joint statement, the firm and the council said: “Together, CGI and Scottish Borders Council will lead the way in creating a smart, connected rural region, which will digitally connect all Borders communities, supporting innovation, empowering a flexible workforce, advancing truly integrated partnership working, and providing solutions to allow greener, low carbon ways for a sustainable future.

“They will do so by advancing cutting-edge digital systems and processes for all the Borders’ citizens and employees in key areas such as social care, health, its world-class education IT programs, employment, the environment and sustainability.”

The council sealed a 13-year £92m deal with the Canadian technology giant in 2016, to run until 2029. However, the council exercised a six-year contractual extension and have now agreed an extra five years, to the tune of £13m.

The overall spend, from 2016 to 2040, is expected to be in the region of £179m.

Cllr Shona Haslam, leader of the council, said: “This extension shows the trust we have in CGI as a valuable strategic partner, sharing our long-term commitment to providing cutting-edge digital solutions to improve our public services, benefiting the council, our community planning partners and our citizens.

“Together, we aim to make the Borders the most technologically advanced rural area in the UK.

“Beginning with our Fit for 2024 transformation programme, we will ensure the Borders is in the best shape to meet future challenges, attract new business to the region, take advantage of new opportunities and deliver the best possible outcomes for our communities.”

Lindsay McGranaghan, CGI’s vice-president and business unit leader for Scotland, said: “Together, our vision will enhance the council’s relationship with its citizens, bringing cutting-edge digital solutions to provide real benefits to citizens and meet the demands of 21st century living.”

However, Mr Bell said this week: “Whilst I am content that Scottish Borders Council continues its working relationship with CGI as an IT partner; whilst I think that improvements over the last four years of our contract with CGI have resulted in a more efficient and effective provision of services by this council, I do not think it is either prudent or transparent for the council to sign up in secret to a 20-year contract with this IT supplier.

“It is a matter of public record that in the first three-and-a-half years of the current CGI contract the council and its partners failed to deliver over £5m of targeted digital savings.

“Lessons have been learned, but the CGI contract to date has not been without its challenges.

“Discussions by councillors of the phenomenal contract extension just announced were conducted under the confidentiality requirements of the Local Government (Scotland) Act of 1973.

“So I am not currently at liberty either to inform my constituents of the details of what has been agreed, nor to tell the Borders public the millions of pounds of their money which has been signed off in this binding commercial contract. Council administrations only run for five years and this Tory-led administration have approved an agreement that not only commits the next administration to increased expenditure (and I am currently not allowed to say anything about that); but it has also committed the next four administrations to a contractual relationship with CGI that to quote them is ‘.. the longest in CGI’s history’.

“I also cannot even tell the Borders public exactly what benefits they can expect to see from this contract.

“All that council tax payers are allowed to know are the broad sweeping statements in a press release.  

“Two years ago, this Tory-led Administration agreed to spend over £10m of public money to buy a small estate but all that so far has happened on that land at Lowood is that the grass has been cut.

“Again, this was decided in secret.

“CGI have been awarded a record-breaking contract, and whilst I applaud CGI for their successful negotiation; whilst I believe that council officers have behaved with integrity. I despair of how the current council administration privately conducts its affairs in deciding how to spend public money.”