Peter Kawalek, Manchester Business School, Booth Street West, M15 6PB [Date] Dear Peter Appointment This letter sets out the terms and conditions upon which Salford City Council (“the Council”) acting on behalf of the Partnership (see below) will appoint Manchester Business School (“the Consultant”) as consultant to its role in specifying, developing and deploying specified products and services forming part of the National CRM Programme, sponsored by the Office of the Deputy Prime Minister (ODPM). Salford City Council will provide grant funding up to a maximum sum of £200,000 (“the Grant”) to the Consultant to enable you to deliver the Project deliverables (“the Products”) contained in this agreement (see section 2 for the terms of this agreement) As context to this agreement, the following section 1 describes the overall CRM programme as it is contained in the approved Programme Definition Document: SECTION 1: BACKGROUND AND SCOPE OF NATIONAL CRM PROGRAMME Background Local Government Online (LGOL), Pathfinders and the implementing of electronic government process have begun to clarify the “big picture” for local eGovernment, bringing a focus on the vision, business case and partnerships, including supporting technologies. To assist and promote this process, the Office of the Deputy Prime Minister (ODPM) has commissioned a number of National Projects and Programmes, of which this National CRM Programme is one. These national initiatives are designed to help local authorities and public partnerships to accelerate the implementation of eGovernment modernisation and service improvement objectives to achieve local government eTargets by 2005. The ODPM, supported by the Office of the eEnvoy (OeE), through the LGOL Enterprise Programme, have approved a £4.275m budget for the National CRM Programme to facilitate the development outlined within this document and delivery of a range of published products designed to give practical guidance and support to local authorities wishing to exploit CRM strategies, approaches and techniques across their services. The Programme will be delivered by a Local Authority partnership (“the Partnership”) led by the London Borough of Tower Hamlets and includes The London Borough of Brent, the London Borough of Newham, Salford City Council, Hull City Council, and Knowsley Metropolitan Borough Council, including representation from District and County Councils MW/Salford @dvance/Ver 02/ July 03 Page 1 of 10 The National CRM Programme commenced in January 2003, and is scheduled to be completed by the end of March 2004. The Programme will publish findings and outcomes for dissemination at appropriate intervals throughout the Programme lifecycle. Delivery of the Programme’s published findings and outcomes will be made available FREE of charge to Local Authorities and other public sector bodies. Programme Scope The programme will focus on providing practical guidance and support to help local authorities exploit CRM strategies, solutions and techniques as part of the eGovernment agenda and cover: o A Vision Statement for CRM in local government. o A flexible, non-prescriptive, Blueprint(s) outlining the structure and composition of the options (CRM ‘models’) that will support the capabilities expressed in the CRM vision. This will cover the services, technology, operations, process, and people aspects of CRM at the three strategic levels of Customer, User and Management across a Local Authority and, where appropriate, partnerships. o A CRM transformational change framework incorporating, where appropriate, OGC best practice. The framework will include programme, project, and business process re-design methodologies, guidelines, and toolkits to assist quality assurance, diagnostic self-assessments and planning decisions. o Development of quality learning and training materials for electronic publication. o Development of diagnostic and self-assessment toolkits that support informed discussion making. o Establishment of Supplier Forums with systems integrators, consultancies, software vendors and legacy system vendors. o Implementation and support of a small number of Proofs of Concept (CRM Showcases) to validate the outcomes and products produced by the programme’s project portfolio. o Establish a Centre of Excellence for CRM in local government (The CRM Academy). MW/Salford @dvance / Ver 01 / July 03 Page 2 of 10 SECTION 2: THE APPOINTMENT This appointment will commence on ------------- and conclude at the completion of the products in accordance with the stipulated timescales in the agreed project documentation referred to below and is made on the following conditions: 1. THE PROJECT (PRODUCTS) 1.1 The consultant will be required to contribute to the development of products and services relating to Awareness Raising and Knowledge Base, Transformation Toolkit and Skills Development and to will lead on the development of the SelfAssessment Toolkit and the Change Management, BPR and Implementation Toolkit. 1.2 More specifically, the actual products and timescales for their delivery under the above headings are set out in the accompanying documentation: Appendix 1:Project Initiation Document (PID) Appendix 2: Product Descriptions 1.3 The Project shall not be varied without the prior written approval of the Council and Programme Board and the consultant is responsible for the day- to -day organisation, management and delivery of the Products 1.4 The consultant is responsible for obtaining and complying with all permissions, consents and licences to deliver the Products 1.5 The consultant shall ensure that the production of the products is carried out: 1.6 In accordance with the provisions of the agreement all of the Partners have joined, for the delivery of the LGOL National Project for Customer Relationship Management set out in their joint Project Definition Document In co-operation with national programme partners as necessary Using all reasonable skill and care In accordance with all applicable legislation So as not to infringe any third party rights In a way which does not or is not likely to bring stakeholder members into disrepute In relation to the products, the Consultant shall regularly inform, consult and report to the City Council’s Project Manager and National Programme Board, on progress in achieving the product targets and outputs, and shall supply copies of all relevant written material, relating to the products, that the Programme Board shall reasonably require and which are defined in the Programme Standards document, available from the Project Manager. Specifically, the Consultant shall supply to the Project Manager and Programme Board, monthly Highlight Reports, Financial position statements, Issues Logs and Risk Logs as defined in the Programme Standards document available from the Council MW/Salford @dvance / Ver 01 / July 03 Page 3 of 10 1.7 Products will be deemed accepted as meeting requirements, following agreement by the Programme Board representative (M Brooks) at the following key stages: Stage 1. Scoping Agreeing the overall purpose, scope and content of the products 2. Specification Agreeing the detailed features, characteristics and functions of the products 3. Draft Development Agreeing the 1st Draft development and any subsequent changes necessary 4. Final Development Agreeing the final version development 5. Handover Handover of the completed final product 2. FINANCIAL ARRANGEMENTS 2.1 The Consultant shall ensure that the Grant is not used for ineligible expenditure, namely: Expenditure on items not specified in the Project Initiation Document and Product Descriptions Expenditure supported from other Government sources, local authority grants, or EC funds, to the extent that the support totals more than 100% of the product costs Recoverable input VAT incurred Any liabilities incurred which are not directly related to the proper delivery of the Project Payments for unfair dismissal or redundancy The Consultant must consult with the Council if there is any doubt as to whether any costs are eligible for the Grant. 2.2 Payment of the Grant is to be quarterly in arrears against expenditure already incurred. Claims by the Consultant and Payment by the Council will be in accordance with a grant claiming and payment mechanism specified by the Council. 2.3 The Consultant shall submit to the Council via the Project Manager: An expenditure profile setting out likely pattern of expenditure for the duration of the project arriving at the total value of the grant Claims for payment shall be accompanied by all necessary invoices, receipts or other evidence of defrayed expenditure. MW/Salford @dvance / Ver 01 / July 03 Page 4 of 10 2.4 The Council does not accept any liability in respect of the loss attributable to any delay in the payment of the Grant for reasons beyond the control of the Council 2.5 All sums received by the Consultant from the Council must be fully and separately accounted for. 2.6 The Consultant shall at all times upon request by the Council, the Office of the ODPM or the District Auditor allow inspection and copying without charge of all records of expenditure including original invoices, receipts and other relevant documents. The Consultant shall keep all such records for at least 6 years after completion of the Project. The Consultant shall co-operate fully with all requests for information or enquiries from the Council, the ODPM or the District Auditor. 2.7 The Consultant must comply with all terms and conditions set out in its own financial regulations, administrative procedures and controls from time to time. Copies of these documents shall be supplied to the Council on request. 2.8 The Consultant must be able to demonstrate value for money in the procurement of goods and services for the purposes of the Products 2.9 The Consultant shall notify the Council immediately if any financial irregularity in the use of the Grant is suspected and indicate the steps being taken in response. Irregularity means any fraud or other impropriety, mismanagement or use of funds for purposes other than that approved. 2.10 In the event of the Grant paid to the Consultant exceeding actual expenditure by the Consultant on the Products, the Consultant shall forthwith notify the Council and repay the amount of Grant paid in excess of actual expenditure within 28 days of such notice unless the Council agrees otherwise in writing. 3. PUBLICITY 3.1 The Consultant shall co-operate with the Programme Board and its partners and other agencies in providing positive publicity for the Products 4. INTELLECTUAL PROPERTY RIGHTS 4.1 Ownership of all intellectual property rights in any materials produced as part of the Products and including development of future versions (including, without limitation, copyright, trade marks, patents and design rights) shall vest in the Partnership 4.2 Salford City Council however, hereby grants a perpetual non-exclusive license to the Consultant to use without restriction and free of royalty, these products for purposes of research and dissemination. The Consultant is further entitled to develop in conjunction with the Council, further versions of the products in the future 4.3 For the avoidance of doubt, all intellectual property in the BPR methodology and toolkit (known as SPRINT, including all of its versions to the present version 3) as MW/Salford @dvance / Ver 01 / July 03 Page 5 of 10 documented on WWW.SPRINT.Gov.UK remain separate and shall not be affected by this agreement 4.4 The consultant must not infringe any third party rights and obtain all necessary licenses and permissions required in carrying out this project 5 BREACH OF CONDITIONS AND RECOVERY OF FUNDS 5.1 6 The Council may reduce, suspend or withhold Grant payment, or require all or part of the Grant to be repaid, if: The Consultant commits or allows to be committed a material breach of any term of this Agreement which is capable of remedy provided that: The Council has served notice in writing on the Consultant specifying details of the breach, the steps the Consultant must take to remedy the breach and the period in which the Consultant has to remedy the breach which shall be not more than 28 days; and At the end of the period given to remedy the breach, the Consultant has not remedied the breach or the breach is incapable of remedy. The Consultant commits or allows to be committed any material breach of any term of this Agreement which is incapable of remedy. NATURE OF THIS AGREEMENT These terms and conditions relate only to funding of the Products and shall neither constitute either party to it as the agent of the other, nor shall they constitute or be deemed to constitute a partnership between the parties. 7 TRANSFERS AND ASSIGNMENT The Consultant shall not assign or transfer any of its rights or interests in relation to the Grant, including, without limitation, the right to receive payment, without the written consent of the Council (which consent the Council may in its absolute discretion withhold) save transfer or assignment as deemed necessary for administrative reasons, to the Consultants successor institution following the upcoming merger with UMIST, so long as the development of products and use of grants is in no way affected 8 NOTICES Any notice to be given by either party shall be given in writing and shall be delivered to such address or facsimile number as that party may have notified for the purposes of this agreement. MW/Salford @dvance / Ver 01 / July 03 Page 6 of 10 9 SUCCESSION 9.1 References to “the Council” or the “Programme Board” includes reference to any successor body or person to which shall fall the right to enforce the benefit of this Agreement and/or the right to receive repayment of any monies payable to the Council hereunder or whether by way of Act of Parliament, Statutory Instrument, express agreement or deed or otherwise. 9.2 References to “the Office of the Deputy Prime Minister” includes reference to any successor body or person to which shall fall the right to receive payment of any monies payable to the Office of the Deputy Prime Minister or whether by way of Act of Parliament, Statutory Instrument, express agreement or deed or otherwise. 10 THIRD PARTY RIGHTS This agreement is not intended and does not give any person who is not a party to it any right to enforce its provisions under the Contracts (Rights of Third Party) Act 1999 If you wish to accept this offer of the Grant, you must return the attached copy offer letter signed by an authorised signatory no later than [ ] 2003. I look forward to hearing from you. Yours sincerely MW/Salford @dvance / Ver 01 / July 03 Page 7 of 10 COPY LETTER The Consultant accepts the Grant and the terms and conditions attached to it as detailed in this letter. I confirm that I am duly authorised to sign this acceptance on behalf of the Consultant. Signature: Name: Position: Date: MW/Salford @dvance / Ver 01 / July 03 Page 8 of 10 Appendix 1 Project Initiation Document (PID) MW/Salford @dvance / Ver 01 / July 03 Page 9 of 10 Appendix 2 Product Descriptions MW/Salford @dvance / Ver 01 / July 03 Page 10 of 10