Procurement Requests August 2015

This paper requests approval for procurement related activity for 2 projects, with an estimated multi-year value of up to £17.15m

The DMPC is asked to approve the:
l. Request to instruct Crown Commercial Services to conduct a procurement exercise for the renewal of Call-off contracts for the Supply of Liquid Fuel via the existing Supply of Liquid Fuel Framework;
2. Initiation of the procurement of three 2 year Call-Off contracts for the Supply of Liquid Fuel via the Supply of Liquid Fuel Framework with an estimated value of £6.15m;
3. Renewal of the Customer Access Agreement with Crown Commercial Services for the procurement of energy from April 2016 to March 2021;
4. Award of three 5 year contracts for the provision of electricity and gas with an estimated value of
£111m.

1. Introduction and background

1.1 As part of the on-going process of managing contracts and tendering/re-tendering for goods and services, Procurement Services Identifies contracts which require DMPC approval for either extension or to initiate contract action to tender or re-tender for goods or services or to award contracts.

2. Issues for consideration

2.1 The following items are requested to be considered for approval :

Supply of Bulk Fuel
The provision of bulk fuel plays a key role in support of the day to day operation of the MPS fleet and also contributes to the contingency plans for all London's emergency services during any fuel shortages or disruption to the fuel supply chain .
The MPS are seeking approval to instruct CCS to conduct a procurement exercise for the renewal of
Call-off contracts for the Supply of Liquid Fuel and the initiation of the procurement of three 2 year
call off contracts for the Supply of liquid Fuel at an estimated value of £6.15m.

Supply of Energy
The procurement of energy has been outsourced to CCS who act as a Central Purchasing Body for 5 years, over this period MOPACs leverage it more effective by aggregating its volumes with other contracting authorities.
The MPS are seeking approval to renew the Customer Access Agreement with CCS for the procurement of energy from 1 April 2016 to March 2021 and the award of three 5 year contracts for
the provision of electricity and gas with an estimated value of £111m.

3. Financial Comments

3.1 The cost of the proposed contracts will be funded from within existing budgets.

3.2 Full details are contained within the reports attached.

4. Legal Comments

4.1 The recommendation can be lawfully approved in accordance with MOPAC Contract Regulations and EU/UK Procurement law.

4.2 In accordance with the MOPAC Scheme of Delegation and Consent (4.8), the DMPC must approve all requests to go out to tender for contracts that exceed £500,000.

4.3 Full details contained within the reports attached.

5. Equality Comments

5.1 Suppliers will be assessed prior to entering into agreements to ensure they comply with relevant legislation. It will be the responsibility of user departments to ensure that the MPS Equality and Diversity policies are adhered to through the life of the contract.

5.2 Suppliers may be asked to sign up to the Diversity Works for London Programme which assesses suppliers against the Equality and Diversity framework.