PCD 1661 Vehicle Recovery and Examination Service (VRES) – Vehicle Disposal – Contract Extension 

Executive Summary:  

This paper seeks approval, in respect of the disposal of seized vehicles, for a 12-month contract extension, an amendment to the originally approved procurement terms to allow a further optional 12-month extension to the initial 4 year period, and to note a retrospective change in supplier requiring a novation of contract.  The contract actions operate under the Concession Contract Regulations as there is no cost to MOPAC/MPS.  

Recommendation:  

The Deputy Mayor for Policing and Crime is recommended to:   

1. Approve the unforeseen extension of an existing call off contract with the supplier, SYNETIQ Ltd for a period of up to 12 months commencing 1st July 2024 to 30th June 2025. 

2. Approve an update to PCD 612 (approval to initiate procurement and delegated authority to award contract) in relation to the contract duration. Originating from the re-procurement from 48 months to 60 months, incorporating 1x 12 month extension after 48 months (4+1).  

3. Note a retrospective Novation for a change of ownership from Doncaster Motor Auctions Ltd (t/a Motorhog) to SYNETIQ Ltd. 

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

1. Introduction and background  

1. The existing contract for the disposal of vehicles expires on 30 June 2024.   

2. Issues for consideration 

1. The MPS’s Vehicle Recovery & Examination Services (VRES) is an enabler of the MPS mission “of ‘more trust, less crime and high standards” and would be unable to offer the following positive benefits if it were unable to effectively dispose of vehicles: 

• By initiating and supporting policing initiatives we engage the community, provide public reassurance whilst denying criminals use of the road.  

• By conducting over 18,000 vehicle inspections annually, we remove dangerous weapons, drugs and illegal items from circulation on London's streets, directly preventing and fighting crime. 

• Operating 24/7, VRES delivers the specialist vehicle services that are vital to forensic investigations and frontline operations.  

• By recovering collision vehicles and enabling examinations, we provide the infrastructure that allows officers to tackle crime head-on.  

• Reduce London road deaths by allowing officers to seize vehicles being driven in breach of road traffic legislation. 

• Support the Mayor’s “Vision Zero” Transport Strategy by removing uninsured and unsafe vehicles from the road network of London to prevent road death and serious injuries.  

• Target and seize nuisance vehicles engaged in noise and anti-social behaviour 

• Remove stolen vehicles to a place of safety to prevent their further loss, damage or use in crime. 

2. MOPAC approved the re-procurement of this service in July 2019 – see PCD612 - where the contract was due to expire in June 2021.   The MPS initiated the tender process in December 2022.  There was a challenge to the procurement by one of the bidders and as a result, based on legal advice, the tender process was abandoned in April 2023.  

3. The MPS issued a Prior Invitation Notice (PIN) in April 2024 to advise the market of a new procurement process and now seeks an extension to the existing contract to ensure continuity of the vehicle disposal service while the procurement process takes place, and an amendment to the previously approved (PCD612) re-procurement to allow an optional 1-year extension to the previously approved 4-year term. 

4. The MPS assure that there are no apparent risk indicators in regard to the financial standing of SYNETIQ or other financial factors that would prevent a continuation of services under the Call Off Contract, and that SYNETIQ is a viable company within the vehicle disposal industry. The existing contract with SYNETIQ is a concession contract only (income generated, no outlay) and therefore risk is relatively low.  

3. Financial Comments  

1. There is no expenditure cost associated with this proposed contract extension as it is a concession contract and the contractor’s costs are funded by buyers of the vehicles.  The MPS estimate a c£7,000,000 annual income from the disposal of these vehicles. 

2. The estimated value of the future re-procurement is £37,600,000 over the potential 5-year term of the contract. 

4. Legal Comments 

1. The Mayor’s Office for Policing and Crime (“MOPAC”) is a contracting authority as defined in the Concession Contracts Regulations 2016 (“the Regulations”).  All awards of, and modifications to, concession contracts valued at £5,372,609 or above shall be procured in accordance with the Regulations.  

2. The MPS Directorate of Legal Services confirm that the proposal is compliant. There is further detail in the restricted section of the report.  

3. The MOPAC Scheme 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);  

• 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), and 

• 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 (paragraph 4.13). 

5. Commercial Issues  

1. The proposed 12-month extension for the supply of vehicle disposal services will be on the same terms and conditions as the existing arrangement. The current supplier’s financial standing and viability condition is showing as ‘stable’ with a likelihood of continued operations. 

2. The future re-procurement is proposed to be on the basis of an initial 4-year term with an optional further 12-month extension.  

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 there are no identified privacy implications. The Information Assurance and Information Rights Units within the Met will be consulted when necessary to ensure that compliance requirements are met. 

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 this business case has undergone an initial Equality screening. Due regard has been taken to ensure compliance with the Equality Act in particular the Public Sector Equality Duty. Real consideration has been taken to assess equality impact caused by the proposed business case. As a result, no negative impact has been identified to any individual and/or group safeguarded by a protected characteristic and to those who are not negating the requirement to document any mitigation. 

8. Background/supporting papers 

• Appendix 1 MPS Report - Vehicle Recovery & Examination Services (VRES) Vehicle Disposal Contract