PCD 1340 Fleet Services Overt R&M Contract Awards

PCD 1340 Fleet Services Overt R&M Contract Awards

This paper seeks approval for the award of six contracts for the provision of the overt vehicle fleet repair and maintenance services.  This procurement contributes to the MOPAC Police & Crime Plan as the MPS fleet is a key enabler in the fight against crime directly supporting front line officers in protecting Londoners and keeping the city safe. 

The contract terms are for either an initial term of seven years with three one-year optional extensions or for three years with two one-year optional extensions.  The contract values for the maximum term of the contracts is £405,900,000.  The paper also seeks approval for the funding of the enhanced commercial contract management team (£3,387,000), integration and provision of technology support (£1,477,000), and implementation costs. The MPS assure that the overall costs across the ten year term are funded.   

The Deputy Mayor for Policing and Crime is recommended to:   

1. Approve the award of Contract 1 – Emergency Response Vehicle Repair with a value of £207.900m and a duration of ten years (seven years with three one-year extension options) 

2. Approve the award of Contract 2– Emergency Response & Support Vehicle Repair with a value of £68.900m and a duration of ten years (seven years with three one-year extension options) 

3. Approve the award of Contract 3 – General Purpose Vehicle Repair with a value of £6.600m and a duration of five years (three years with two one-year extension options) 

4. Approve the award of Contract 4 – Vehicle Collision Repair with a value of £22.700m and a duration of five years (three years with two one-year extension options) 

5. Approve the award of Contract 5.1 – Systems Integrator with a value of £66.300m and a duration of ten years (seven years with three one-year extension options) 

6. Approve the award of Contract 5.2 – Collection & Delivery with a value of £33.500m and a duration of ten years (seven years with three one-year extension options) 

Please note that the Contract award 1-6 totals £405.9m, which includes a 20% operational headroom and additional 33% headroom to cater for surge and future demands.   

7. Approve £3.387m for BAU revenue costs for the provision of a commercial contract management team, which has approved funding from allocated funds within the MPS reserves. 

8. Approve £0.772m for BAU revenue budgetary provision for DP technology support which has approved funding from allocated funds within the MPS reserves  

9. Approve funding for supplier pre-transition activity plus additional programme resource to support the mobilisation and delivery activities which has been approved from allocated funds including the MPS reserves. 

10. Approve the expenditure of £0.705m of capital budget, already contained in the approved TD Capital Plan, to undertake technology integration. 

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

1. Introduction and background  

2. The current contracts for the provision of the overt vehicle fleet repair and maintenance function expires in October 2023. There are no further opportunities to extend.  

3. MOPAC approved the re-procurement of these services in April and December 2021 – see PCD954 and PCD1090. 

4. Issues for consideration 

5. The MPS assure that this procurement contributes to the MOPAC Police & Crime Plan as the MPS fleet is a key enabler in the fight against crime directly supporting front line officers in protecting Londoners and keeping the city safe. 

6. The re-procurement was designed with the creation of a number of contracts rather than one in order to increase competition, improve service performance, increase efficiency and comply with environmental standards. 

7. The contract specifications include provision to support the ambitions for Ultra Low Emission Zone (ULEZ) and net zero carbon. 

8. The MPS assure that innovative, yet practical and proven, fleet management technologies will provide real-time visibility of the progress of vehicle repairs and vehicle location for officers, alongside visibility of clear and real-time management information. 

9. Overall, one supplier scored higher than others across all procurements. As such, all contracts have been won by one supplier, despite the intent to re-provide a multi-service multi-provider fleet repair and maintenance model.  Having a single supplier will reduce the risks associated with implementing and managing a multi-supplier model and the MPS has also assured that the six contracts model has been designed to provide the level of control and performance management that will provide a service delivery that works for the MPS, and create the right level of transparency and resilience.   

10. The model is moving away from fixed costs per vehicle, to a variable consumption-based model that provides greater opportunity for efficiency. 

11. Financial Comments  

12. The contract values proposed are based on a ‘high-volume’ scenario, inclusion of a headroom if volumes are higher than expected, and provision for unforeseen and contingent items for example, if there was a need for surge purposes. The analysis also includes the one-off and on-going costs of managing the contract. 

13. MPS assure that the budget is in place over the ten year period for the estimated costs of the proposed contracts based on the ‘high volume’ scenario and implementation costs, and would generate savings over the ten years of £32.7m.  If the headroom provision is required this will place pressure on the budget and reduce the savings. Monitoring arrangements will be in place and MPS will work to ensure that costs can be met from the funding envelope available. 

14. The MPS state that the up-front phasing of the implementation costs will require the use of reserves, and that future estimated savings will be used to replenish the reserves and contribute to the MTFP.  

15. Spend above the existing budget and use of the provision for unforeseen and contingent items are not funded and would require a further MOPAC approval.  

16. Legal Comments 

17. The Mayor’s Office for Policing and Crime (“MOPAC”) is the contracting authority as defined in the Public Contracts Regulations 2015 (“the Regulations”). All awards of public contracts for goods and/or services valued at £213,477 or above shall be procured in accordance with these Regulations. This report confirms the value of the proposed contracts exceeds this threshold. 

18. The MPS assure that the route to market and procurement are compliant with the regulations. 

19. 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); and  

• Paragraph 4.14 of the Scheme provides that the DMPC reserves the right to call in any MPS proposal to award a contract for £500,000 or above. 

4. Paragraph 7.23 of the MOPAC Scheme of Delegation and Consent provides that the Director of Commercial Services has consent for the approval of the award of all contracts, with the exception of those called in through the agreed call-in procedure.  

5. Commercial Issues  

6. The re-procurement is for the supply of the repair and maintenance service for the Metropolitan Police Service overt vehicle fleet.  This includes fleet management, collision repair and mobile support, and service, minor repairs and maintenance.  A multi-contract model was established to encourage a robust competitive process and to encourage multiple bidders. 

7. The procurement was via the competitive procedure with negotiation under the Public Contracts Regulations 2015. The MPS assure that this is compliant with regulations. 

8. As well as the GLA and its functional bodies the London Ambulance Service (LAS) , City of London Police and British Transport Police (BTP) were approached to consider collaborative opportunities.  Transport for London indicated that they may use the contract to manage their surge capacity. 

9. The proposed successful supplier scored the highest Most Economic Advantageous Tender” (MEAT) score for each contract.   

10. The MPS assure that the new model provides improvements in contract and performance management that incentivises collaboration, achievement to Key Performance Indicators (KPI’s) and continuous improvement. 

11. All five procurements have resulted in a cumulative contract award value that falls within MPS affordability bounds, based on the high volume scenario, and the quality score for all procurements was higher than required.  

12. The MPS state that these contracts are heavily supportive of and demonstrated a number of social value priorities that were included in the procurement of these services.  Three main themes include economic benefits, ensuring a diverse base of suppliers and resilient supply chains whilst making opportunities available to SMEs, and the inclusion of social value benefits, for example community benefits and fair working practices, employment and skills, capability, and skills improvement such as promotion of training and apprenticeships and mentoring and coaching opportunities. 

13. The outsourced services will be managed by an internal MO11 Operational Support Services team (Strategic Assurance Function – SAF) through a partnership approach, continually seeking continuous improvement in service delivery, value for money, and customer experience 

14. There will be TUPE between the current supplier and new supplier, however no TUPE transfers of people are anticipated that will impact the MPS directly. TUPE costs are built into the supplier milestone payments for transfers between suppliers and the anticipated impact to the MPS. 

15. GDPR and Data Privacy  

16. MOPAC will adhere to the Data Protection Act (DPA) 2018 and ensure that any organisations who are commissioned to do work with or on behalf of MOPAC are fully compliant with the policy and understand their GDPR responsibilities.   

17. The MPS assures that this programme does not use personally identifiable data of members of the public, so there are no GDPR issues to be considered. 

18. Equality Comments    

19. MOPAC is required to comply with the public sector equality duty set out in section 149(1) of the Equality Act 2010. This requires MOPAC to have due regard to the need to eliminate discrimination, advance equality of opportunity and foster good relations by reference to people with protected characteristics. The protected characteristics are: age, disability, gender reassignment, marriage and civil partnership, pregnancy and maternity, race, religion or belief, sex and sexual orientation. 

20. The MPS assure that as this is a re-procurement of an existing service it does not change any aspects relating to equality or diversity. 

21. Background/supporting papers 

• Appendix 1 MPS Report - FLEET SERVICES OVERT REPAIR & MAINTENANCE