DMFD97 Inflatable Rescue Boats and Outboard Motors

1.1. Report LFC-0435y explains that Babcock Critical Services Limited are London Fire Brigade’s (LFB’s) maintenance and service provider and manage the Vehicles and Equipment contract on behalf of the LFB. This contract was awarded in 2014 and runs until 2035. As part of this contract, Babcock Critical Services Limited replace, service and repair all items listed within the Vehicle and Equipment contract. All vehicles and equipment have a life schedule, at the end of which they must be replaced. Extensions to the life of vehicles and equipment can be agreed by the LFB Engineering Fleet Manager if it is possible for these vehicles or equipment to be safely maintained. All additional asset life costs remain constant and will be managed via the 2014 Vehicles and Equipment contract provided by Babcock Critical Services Limited.

1.2. This report is seeing approval to commit capital expenditure of up to £287,100 and place orders under the vehicles and equipment contract with Babcock Critical Services Limited for 16 Inflatable Rescue Boats (IRBs) and 14 Outboard motors

1.3. Following a tender process in 2017, run by Babcock Critical Services Limited, Survitec Group Limited were the chosen manufacturer to supply five IRBs with an option to purchase the remaining 16 at a later date to coincide with the build of the replacement Fire Rescue Unit (FRU). The replacement of the Inflatable Rescue Boats (IRBs) was split into two stages. The first stage saw five IRBs purchased and delivered to the Flood Rescue team in 2018 with the second stage of 16 due to be purchased and delivered for the Fire Rescue Unit (FRU) capability in 2021, in line with the replacement FRU vehicles. The existing inflatable boats on the current FRU are at the end of their serviceable life and require replacement to ensure that the LFB can continue to provide a water rescue capability.

1.4. The purchase of the IRBs was undertaken in two stages as the current FRUs are unable to accommodate the new larger IRBs, so the second stage was postponed to coincide with the replacement of the FRU fleet. The IRBs that were purchased in 2018 and these further 16 IRBs are larger in size than the previous IRBs, this is to comply with the requirements of the Port of London Authority (PLA) and the Marine Coast Guard. In order to be certified as a rescue boat on the River Thames, the IRB’s need to be capable of a minimum 10 knots against the tide, which the existing IRBs would not achieve.

1.5. The outboard motors power the IRBs and 14 are due for replacement in 2021, in line with the replacement FRU vehicle workstream. The LFB already have eight similar outboards (weight, power output and dimensions) as part of its flood response and these additional outboards will complement that number. The existing eight outboards were gifted by DEFRA (Department for Environment, Food & Rural Affairs) in 2011 for use as part of National Resilience flood rescue response to Fire and Rescue Services who agreed to be listed on the national flood asset register. Fire and Rescue Services listed on this register agree to provide a national response in the event of an emergency.

1.6. The Outboards that the LFB currently have were chosen as they met the equipment specifications which were drawn up by the CFOA (Chief Fire Officers Association, now National Fire Chiefs Council) Inland Water Technical Group and would meet the minimum capacity to drive upstream against 10mph flow with six persons. In order to meet this specification a 2-stroke, 30 horsepower (hp) high output outboard motor is required to deliver the appropriate power to weight ratio; similar outboards are in use for similar reasons by the Royal National Lifeboat Institution (RNLI) and the military. The required outboard is only available for purchase by the military and emergency services and EP Barrus Limited are the main UK agent who are allowed to purchase and sell this level of outboard and therefore Babcock Critical Services Limited have procured these from EP Barrus Limited.

1.7. Best value for money has been secured by following the product evaluation carried out by the MOD and RNLI which has demonstrated the performance and reliability of these engines in very arduous conditions, this coupled with LFB’s own in service trials of the existing eight outboards gives assurance that the outboard selected has a proven performance and reliability record.

1.8. The marketplace for low weight high power small outboards is limited to a small number of suppliers, however the special product division of EP Barrus Limited are the only specialist providers of marine propulsion units (outboards) who supply the emergency services, the Ministry of Defence, and the RNLI. These specialist outboards meet the requirements as set out in paragraph 1.6.

1.9. Selecting an engine with comparable performance and characteristics to the eight we already have in service means it will reduce the training burden by removing the need to familiarise crews with a new outboard.

1.10. The 14 new Outboard Motors will be the same as the 8 existing outboards, similar in weight and dimensions and power output, and will be designed into the stowage of the new FRU, thus avoiding modification costs for the FRU replacement vehicle project.

1.11. LFB currently have eight x 30hp outboard motors within the fleet. The purchase of the additional 14 outboard motors will be identical in performance, control, and handling to be interchangeable with the current outboard motors. The purchase of the IRBs and the Outboard Motors will create a stock of 21 IRBs and 22 Outboards. The additional outboard provides resilience and an enhanced flood response capability by providing interchangeable outboards for the 22 x FRB390s (a larger rigid canoe-type boat) used for major flood rescue, where an IRB may puncture due to debris within the flood water. Babcock Critical Services Limited and LFB technical leads are therefore advising a like for like replacement of the equipment.

1.12. The IRBs and Outboard Motors work together as one kit to carry out water rescue operations.

2.1. The objective of this proposal is to seek the approval for the London Fire Commissioner to commit expenditure to place orders under the vehicles and equipment contract with Babcock Critical Services Limited for £287,100. This will permit the LFB to meet its obligations to provide a water rescue capability to the people of London. Lead times

2.2 Survitec Group Limited have advised a lead time of 16-weeks for the remaining IRBs and a lead-time of 12-weeks is expected for the Outboards from the time of order. Alternative Options Considered and Consultation

2 .3 There is a requirement and a duty to the people of London for LFB to provide water rescue equipment, in particular, in the River Thames which is tidal. Therefore, in 2017, a full tender process was conducted by Babcock Critical Services Limited on behalf of the LFB, to 4 potential bidders to supply the new IRB’s. As a result of this, two of the suppliers were removed prior to the operational testing, as they were either too expensive or their product didn’t meet the required specifications. The scores for the remaining two, Survitec Group Limited and Safequip, following the operational testing are set out overleaf.

2.4 As a result of this evaluation LFB purchased five IRBs from the winning tender (Survitec Group Limited) and these were delivered in 2018. Within this contract, Survitec Group Limited gave LFB the option to purchase a further 16 at the same price (including indexation) at a later date to ensure that this coincided with the procurement of the new Fire Rescue Units (FRUs) due to be delivered in June 2021 – thereby removing the need for modifications to the current FRUs to accommodate the larger IRB. The LFB is proposing exercise this right and purchase the remaining 16 IRBs from Survitec Group.

3.1 The London Fire Commissioner and decision takers are required to have due regard to the Public Sector Equality Duty (s149 of the Equality Act 2010) when exercising our functions and taking decisions.

3.2 It is important to note that consideration of the Public Sector Equality Duty is not a one-off task. The duty must be fulfilled before taking a decision, at the time of taking a decision, and after the decision has been taken.

3.3 The protected characteristics are: Age, Disability, Gender reassignment, Pregnancy and maternity, Marriage and civil partnership (but only in respect of the requirements to have due regard to the need to eliminate discrimination), Race (ethnic or national origins, colour or nationality), Religion or belief (including lack of belief), Sex, and Sexual orientation.

3.4 The Public Sector Equality Duty requires us, in the exercise of all LFC functions (i.e. everything the LFC does), to have due regard to the need to:
a) eliminate discrimination, harassment and victimisation and other prohibited conduct;
b) advance equality of opportunity between people who share a relevant protected characteristic and persons who do not share it; and
c) foster good relations between people who share a relevant protected characteristic and persons who do not share it.

3.5 Having due regard to the need to advance equality of opportunity between persons who share a relevant protected characteristic and persons who do not share it involves having due regard, in particular, to the need to:
a) remove or minimise disadvantages suffered by persons who share a relevant protected characteristic where those disadvantages are connected to that characteristic;
b) take steps to meet the needs of persons who share a relevant protected characteristic that are different from the needs of persons who do not share it; and
c) encourage persons who share a relevant protected characteristic to participate in public life or in any other activity in which participation by such persons is disproportionately low.

3.6 The steps involved in meeting the needs of disabled persons that are different from the needs of persons who are not disabled include, in particular, steps to take account of disabled persons' disabilities.

3.7 Having due regard to the need to foster good relations between persons who share a relevant protected characteristic and persons who do not share it involves having due regard, in particular, to the need to:
a) tackle prejudice; and
b) promote understanding.

3.8 Officers from the LFB’s Technical and Commercial department have completed an equality impact assessment. The procurement of a similar outboard and IRBs mean that no additional equalities impacts have been identified. The Output Based Specification (OBS) was written as part of the LFB’s requirement so that the market could tender against specific requirements and the LFB could fairly evaluate each individual response with the end users’ needs in mind.

3.9 In addition, the Babcock Critical Services Limited contract requires Babcock Critical Services Limited and any sub-contractor they may engage, to conform to equality legislation and LFB equalities protocol. Babcock Critical Services Limited also assess all of their providers approach to equality and ensure they are satisfied that they meet appropriate protocols, prior to them listing those companies as approved providers. Therefore, it is considered that there is an appropriate approach to equalities through the supply chain in respect of this procurement.

Strategic drivers

4.1 The replacement of the existing IRB and outboard motors is consistent with the LFBs requirement to serve and protect the people of London, by providing an effective water rescue capability that can be used on rivers, open water and at times of flooding.

4.2 The replacement programme will see an improvement in the current water rescue capability with both the new IRBs and larger outboard motors giving a capability that can operate more effectively on the river Thames as required.

Procurement

4.3 Following the market engagement and assets evaluation for the replacement of 21 IRBs in 2017, Babcock Critical Services Limited awarded a contract to provide the replacement of 5 of the 21 Inflatable Rescue Boats currently held on the FRU’s to Survitec Group Limited at the price offered for 21. Five were delivered and paid for in 2018 for the flood response team. Survitec Group Limited agreed to offer the remaining 16 IRBs to the LFB at the same price, subject to indexation, at a time that coincided with the replacement of the FRU. The procuring of the IRBs was done in two parts to coincide with the new FRU build which commenced in early 2021 and to ensure continuity of equipment already held by the LFB. This approach represents value for money as there will be no further LFB operational training requirements or the need for additional parts stock to be held by Babcock Critical Services Limited. When the original order for five IRBs was placed in 2018 Babcock Critical Services Limited agreed a reduced price for the remaining 16 IRBs to be purchased at a later date, whilst this price was still subject to inflation costs over the three year period, it remains a reduced price compared to the current market value if Babcock Critical Services Limited were to purchase the remaining 16 IRBs now.

4.4 Babcock Critical Services Limited have engaged EP Barrus Limited as a single tender for the outboard motors. EP Barrus Limited are the only UK agent for Ministry of Defence, RNLI and emergency service bespoke products and they have proven performance and reliability record. Whilst there are other suppliers who may be able to provide the required outboard, they would have to purchase this from EP Barrus Limited special product division stating that this is for the Emergency Services and as such this would incur additional third party costs offering no benefit to the LFB.

4.5 The existing IRBs and Outboard motors will be recycled by Babcock Critical Services Limited under the provisions of the Vehicle and Equipment Contract. If the equipment items are to be scrapped, or broken up for parts, Babcock Critical Services Limited will provide full details relating to the disposal of the component parts and will ensure that the LFCs obligations are documented and adhered to.

4.6 Survitec Group Limited have policies in place covering Responsible Sourcing and a zero tolerance to modern slavery. Survitec Group Limited also audits their suppliers and ensures they comply with these policies.

4.7 Babcock Critical Services have policies relating to anti-slavery, sustainability and anti-corruption in place and are set up with multiple suppliers for business continuity purposes.

5.1. This report recommends the replacement of Inflatable Rescue Boats (IRBs) and detachable Outboard Motors, carried on Fire Rescue Units at a cost of up to £287,100. The cost of the IRBs and Outboard Motors replacements will be charged to the capital programme. The approved capital budgets currently in the capital programme are £180,000 and £56,000 respectively.

5.2. The estimated costs of the replacements in this report are £261,000 with an additional 10% contingency of £26,100, which has been added to take account of price risk due to the economic climate, giving a total estimated cost of £287,100, an increase of £51,100 above the current budgeted costs. If final costs are at £287,100, the additional cost of £51,100 is to be funded from the capital receipts generated from vehicle disposals. The Brigade has not budgeted for the vehicle disposal capital receipts, and as these are now forecast to total in excess of £100,000 in 2020/21 £51,500 of this will be allocated to fund the contingency set out above.

5.3. The cost of the works already included in the Capital Programme budget (£236,000) will incur annual capital financing costs on the revenue budget of £23,000, with £16,000 of this for the provision to repay debt (minimum revenue provision), based on a 15 year asset life and £7,000 for annual interest, at a rate of 3%. These capital financing costs have already been included within the approved revenue budgets.

5.4. The maintenance costs of the IRBs and Outboard Motors are covered within the existing 2014 Vehicles and Equipment contract for the equipment that these items are replacing.

Project Combined Cost Summary Table

5.5. The costs in the summary table above include delivery fees, Babcock Critical Services’ pre-delivery inspection costs (whereby Babcock Critical Services undertake a visual and performance check of each unit, allocating each item with a unique barcode and adding them to their database), and Port of London Authority costs for surveying and registering new boats on the River Thames. 5.6. A 10% contingency to allow for the price risk due to current economic climate will be applied to the total of £261,000 As such an approval to spend up to £287,100 has been requested. This contingency will only be used for possible increases, such as the PLA increasing their fees, or any other unforeseen rises.

6.1. Under section 9 of the Policing and Crime Act 2017, the London Fire Commissioner (the "Commissioner") is established as a corporation sole with the Mayor appointing the occupant of that office. Under section 327D of the GLA Act 1999, as amended by the Policing and Crime Act 2017, the Mayor may issue to the Commissioner specific or general directions as to the manner in which the holder of that office is to exercise his or her functions.

6.2. By direction dated 1 April 2018, the Mayor set out those matters, for which the Commissioner would require the prior approval of either the Mayor or the Deputy Mayor for Fire and Resilience (the "Deputy Mayor").

6.3. Paragraph (b) of Part 2 of the said direction requires the Commissioner to seek the prior approval of the Deputy Mayor before “[a] commitment to expenditure (capital or revenue) of £150,000 or above as identified in accordance with normal accounting practices…”.

6.4. The Deputy Mayor's approval is accordingly required for the Commissioner to commit capital expenditure of up to £287,100 for the purchase of 16 Inflatable Rescue Boats and 14 Outboards Motors.

6.5. The statutory basis for the actions proposed in this report is proposed by section 11 of the Fire and Rescue Services Act 2004 under which the Commissioner may take any action it considers appropriate—(a) in response to an event or situation of a kind mentioned in subsection (2); (b)for the purpose of enabling action to be taken in response to such an event or situation.

6.6. The Commissioner’s General Counsel confirmed the proposals in this report are in line with the provision of services provided under the Commissioner’s vehicles and equipment contract with Babcock and also noted that the proposed goods have been procured in compliance with the Public Contracts Regulations 2015 through the contract with Babcock Critical Services Limited.