PCD 1252 - Request for additional contract spend in Support of the ANPR MetBOF service

PCD 1252 - Request for additional contract spend in Support of the ANPR MetBOF service

This paper seeks MOPAC approval for additional contract spend in order to maintain the application and hardware support on the business critical ANPR MetBOF application with one of its main suppliers. This will be for a one year period. This support and maintenance extension is a tactical solution to provide existing levels of support on the business critical system until the existing solution becomes end of life and will be superseded with an alternative. 

This paper does not request additional funding or budget growth. 

The Deputy Mayor for Policing and Crime is recommended to:   

0. Approve an additional £795k in contract spend to cover the shortfall between the £634k approved in the Consolidated IT Renewals Paper and the £1,428k price proposed by the supplier,  to provide a further 12 months support for the ANPR MetBOF system to 22nd August 2023, fully funded from the MOPAC Approved Digital Policing (DP) Applications and End User Services budget.  

1. Note this is not a request for additional funding or budget growth. Revenue costs of £1,428k for 12 months to extend the existing supplier contract will be funded from the MOPAC Approved Digital Policing Applications and End User Services Budget. 

PART I - NON-CONFIDENTIAL FACTS AND ADVICE TO THE DMPC 

1. Introduction and background  

1. The existing support and maintenance contract provided by the supplier and their subcontractors, for the application, hardware and support of the image store are offered at both a second and third line support capability. The intention is to extend this capability, by one year, after which time the solution will be superseded with a new service. 

2. The support extension proposal from the existing supplier has been received, but is considerably more than expected, and was estimated, in the MOPAC approved Consolidated IT Contracts Renewal FY 22/23. This, coupled with the lateness of arrival, has placed a significant time emphasis on having to seek approval for additional contractual capability, in a very short time scale, or risk having a significantly reduced support capability on a business critical system. 

2. Issues for consideration  

1. The current supplier contract has the capability to extend for one more year, to 22nd August 2023, after which the existing solution becomes end of life and will be superseded with an alternative. 

2. This support and maintenance extension is a tactical solution to provide existing levels of support on the business critical system until the new solution is delivered. 

3. The expectation is that the existing support capability will only be required for one year, starting Aug 2022.  

4. During the one year period all other support provided by other mechanisms will remain in place. 

3. Financial Comments  

1. Revenue costs of £1,428k for 12 months to extend the existing supplier contract will be funded from the MOPAC Approved Digital Policing Applications and End User Services Budget. This is not a request for additional funding or budget growth. 

4. Legal Comments  

1. The MOPAC has a right to request a one year extension of the approved contract. The supplier has agreed to the request to extend. The extension can be awarded compliantly because it is a foreseen extension which is anticipated in the contract. 

2. The original contract value has been exceeded however the value of the extension was not fixed and depends on the relevant Call-Off Charges at the time.  

3. The MOPAC Scheme of Delegation and Consent provides the Deputy Mayor for Policing and Crime (“DMPC”) has delegated authority to approve Business cases for revenue or capital expenditure of £500,000 and above (paragraph 4.8). 

4. Paragraph 7.23 of the Scheme provides that the Director of Strategic Procurement has consent for the approval of the award of all contracts, with the exception of those called in through the agreed call in procedure.  Paragraph 4.14 of the Scheme provides the DMPC reserves the right to call in any MPS proposal to award a contract for £500,000 or above. 

5. Commercial Issues  

1. The current ANPR MetBOF contract runs for a period of 2 years, expiring on 22nd August 2022, with a total contract value of £2,285k. These costs are paid up front.  

2. The contract provides for a further 12 month extension subject to agreement on charges with the supplier. The contract states: 

“In the event that the Buyer chooses to extend the Call-Off in line with the Call-Off Extension Period, the Supplier shall propose the relevant Call-Off Charges that will apply to the extension to be agreed between the Parties.” 

3. The supplier has proposed an increase for the one year extension of £1,428k. Negotiations to revise this number downwards have been undertaken by MPS Commercial but have not been agreed by the supplier.  

6. GDPR and Data Privacy  

1. The request for additional contract spend does not use personally identifiable data of members of the public, so there are no GDPR issues to be considered. 

7. Equality Comments  

1. As this is an extension of an existing service this work does not change any aspects relating to equality or diversity. 

8. Background/supporting papers 

1. Referenced in the MOPAC approved Consolidated IT Contracts Renewal FY 22/23 . 3rd March 2022.