PCD 1591 Re-procurement OSG and Compliance contracts 1 – uplift and re-procure

PCD 1591 Re-procurement OSG and Compliance contracts 1 – uplift and re-procure

This paper seeks approval for uplifts in the contract value of five property related service contracts, and to initiate procurement for the re-provision of them.  The total contract value uplift over the remaining life of the five contracts is £2,740,979.  The proposed contract values for the re-procurements is £36,675,000.  The cost of the contracts will be funded from existing budgets with inflation uplifts addressed as part of the annual budget process, and volume/growth increases e.g. New Met for London related, from specific business cases. 

The Deputy Mayor for Policing and Crime is recommended to:   

1. Approve uplifts of existing contract values to maintain service provision across the MOPAC estate. This will provide sufficient time to re-procure and award contracts that are able to respond to changes that arise through the ‘New Met for London’ (NMFL) Plan and the demands of the revised estate strategy. 

1. Provision of Firing Range Maintenance uplift of £414,314, increasing current approved contract value of £1,839,460 to £2,253,774.  

2. Provision of Laundry Services and Cell Blanket Provision uplift of £493,817, increasing current approved contract value of £5,728,851 to £6,222,668.  

3. Provision of Crowd Control Barrier Service Provision uplift of £1,112,234, increasing current approved contract value of £9,126,308 to £10,238,641. 

4. Provision of Mail Screening Service uplift of £170,614, increasing current approved contract value of £1,970,000 to £2,140,614. 

5. Provision of Crime Scene Cleaning and Void Management uplift of £550,000, increasing current approved contract value of £1,123,900 to £1,673,900.  

2. Approve the re-procurement and award of the following service lines within a 15% tolerance of the values outlined in this paper to be signed off by the MPS Commercial Director under delegated authority; 

1. Re-Procurement of the Provision of Firing Range Maintenance services with a total contract value of £3,702,093 over a contract length of 3+2+2 years. 

2. Re-Procurement of the of Laundry Service and Cell Blanket services with a total contract value of £10,602,595 over a contract length of 3+2+2 years. 

3. Re-Procurement of the Provision of Crowd Control Barrier services with a proposed total contract value of £11,574,395 over a contract length of 3+2+2 years. 

4. Re-Procurement of the Provision of Mail Screening services with a total contract value of £3,761,002 over a contract length of 3+2+2 years. 

5. Re-Procurement of the Provision of Crime Scene Cleaning and Void Management Services with a total contract value of £6,986,688 over a contract length of 3+2+2 years. 

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

1. Introduction and background 

1. This paper refers to the provision of the following service contracts: 

2. Issues for consideration 

1. The reasons for existing contract value uplifts include inflation, increased officer training at firing ranges, cover for approved contract extensions, increased cell occupancy, rising operational demand for crowd control barriers e.g. the King’s coronation, and late Queen’s funeral, more buildings receiving mail screening service, and enhanced victim care services. 

2. The attached appendix 1 sets out the detailed rationale for the continued proviosion of these services via the out-sourced model. Reasons include that expertise and specialist equipment is only available in the private sector, and that there are benefits accruing to the MPS where a service provider co-locates provision to MPS with other clients.   

3. The MPS has calculated future contract values based on the current level of demand and cost and allowed for inflation, potential growth associated with the New Met for London plan and a contingency. 

4. These services are essential to the compliance of the estate and to maintain facilities needed to enable operational policing to function effectively. 

3. Financial Comments 

1. The MPS assure that no further budget is required in respect of either the current contract uplifts or the proposed re-procurements as being managed within the MPS Property Services Directorate budgets.  Inflation uplifts will be addressed as part of the annual budget process, and volume/growth increases e.g. New Met for London related, from specific business cases. 

4. Legal Comments 

1. The MPS Directorate of Legal Services assures that the recommendations in this paper can be legally approved.  

2. In respect of the recommendations 1 a)-e) paragraph 4.13 of the MOPAC Scheme of Delegation provides that the Deputy Mayor of Policing and Crime (DMPC) has delegated authority to approve all unforeseen variations and extensions to contracts with an original value of £500,000 or above, when the variation or extension is greater than 10% of the original value and / or is for a period of more than 12 months. 

3. In respect of the recommendations 2 a)-e) 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 

• All requests to go out to tender for contracts of £500,000 or above, or where there is a particular public interest (paragraph 4.13). 

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. Paragraph 1.1 sets out the services applicable to this decision.  The contract value uplifts are as follows. These are within the Public Contract Regulations 2015 limit of 50% of the original contract value. 

1. Firing Range Maintenance - uplift of £414,314, a 22.5% uplift from the original contract value  

2. Provision of Laundry Services and Cell Blanket Provision - uplift £493,817, a 47% uplift from the original contract value  

3. Provision of Crowd Control Barrier Service Provision uplift of £1,112,234, a 12.2% uplift from the original contract value  

4. Provision of Mail Screening Service uplift of £170,614, a 8.7% uplift from the original contract value 

5. Provision of Crime Scene Cleaning and Void Management uplift of £550,000, a 48.9% uplift from the original contract value  

2. The MPS assure that a review of available frameworks from Eastern Shires Purchasing Organisation (ESPO), National Health Service (NHS) and Crown Commercial Services (CCS) has been undertaken, and that a number of the services to be reprocured are specific to the MPS and these necessitate specific pricing models and MPS Terms and Conditions deeming available frameworks unsuitable   

3. On collaboration the MPS state that none of the sevices within this submission are deemed suitable or have options within the GLA group at this point in time. MPS commit to continue to work with TfL and other GLA member bodies as a collaborative group that seeks to identify opportunities where common services can be shared. 

4. The proposed procurement route for all five of the services is a restricted tender route.  For all services the contract term is proposed to be an initial 3 years followed by two 2-year optional extensions.   

5. The proposed contract values for the full length of the proposed contract are: 

• firing range maintenance - £3,702,093; 

• laundry and cell blanket services - £10,602,595; 

• crowd control barriers - £11,574,395; 

• mail screening - £3,761,002, and  

• crime scene cleaning and void maintenance - £6,987,001. 

6. During the procurement processes the MPS will include the Mayor’s Resposnible Procurement policy and include London Anchor Institution Charter (LAIC) objectives by including evaluation of criteria such as to deliver local employment and their innovation in doing so; have inclusion and diversity values that are reflected within their workforce; work towards achieving 80% recycling; have apprenticeship schemes in place; and bring innovations into reducing their carbon footprint whilst working towards carbon net-zero. 

6. GDPR and Data Privacy 

1. 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.   

2. The MPS assure that the contracts and proposed procurements do not use personally identifiable data of members of the public, so there are no GDPR issues to be considered. 

7. Equality Comments 

1. 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. 

2.  The MPS assure that as the proposals relate purely to re-procurement and value uplift for an existing contract there are considered to be no negative equality or diversity implications arising from this process. Any approved suppliers will be evaluated for acceptable equality and diversity statements, as well as their ability to meet the MPS requirements under the Equality Act 2010 as suppliers to MOPAC. 

8. Background/supporting papers 

• Appendix 1 – MPS Report - The PSD Real Estate Management (REM) – Contract Value uplift and Re-Procurement