PCD 1824 Novation and Subcontracting approval changes of Metropolitan Police Service – Shared Services Connected Limited (MPS-SSCL) contract

This paper seeks approval to implement the required contractual changes to the current 2015- 2025 and new 2025-2027 contracts with SSCL. 

Recommendation:  

The Deputy Mayor for Policing and Crime is recommended to:   

1. Approve the MPS to consent to SSCL appointing SSL (Sopra Steria Limited) as the new subcontractor within the existing MPS-SSCL Call Off Order Form contract (COOF) that was awarded 2015 to 2025 (PCD908). 

2. Approve the MPS to novate the new Business Support Services Administration contract (BSSA) from SSCL to Sopra Steria Limited (SSL) that commences on 1 October 2025 for a two-year period to September 2027. (PCD1639). 

3.  Approve delegated authority for the Director of Commercial Services to sign the contract changes at 1) and 2). 

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

1. Introduction and background. 

1. In October 2023, the Cabinet Office sold its 25% stake in SSCL. This marked the end of a ten-year joint venture between Cabinet Office and SSCL. As a result, Sopra Steria Limited fully acquired the SSCL business. 

2. In the light of the Cabinet Office sale and market movements, SSCL and their parent companies have elected to restructure their organisational and service delivery models for selected ‘next generation’ government services. These changes require contract alterations for MPS. In parallel, MPS and other public bodies have been working on the next generation Shared Services business requirements. 

3. In October 2024, MPS Business Support and Shared Services supplier (SSCL) outlined the proposed changes in their company structure and hierarchy along with the implications for the MPS service provision & contracts. SSCL explained initially that the implications for MPS was for contract novation (replacing SSCL with Sopra Steria Limited (the parent) to fulfil the current and next contract services under the same terms, price and duration.  

4. However, in December 2024 it emerged that the Cabinet Office could not provide their ‘Framework Authority’ level consent to the novation of the current (2015-2025) contract. To do so would have created a relationship under the Cabinet Office framework, around which the Cabinet Office would not have a role.  As a result, SSCL’s updated proposal was to subcontract existing “COOF” contract in full to SSL.  

5. The proposal to novate MPS the new (2025-2027) contract (PCD1639) remains unchanged once the restructure and changes are completed. 

2. Issues for consideration.  

1. The required changes are administrative in nature. Assurances have been provided that these amendments will not affect service provision, contract pricing and risk 

2. The request is for the current contract with SSCL that runs to the end of September 2025 to be fully Subcontracted to Sopra Soteria Limited (SSL) and approval to novate the new contract that starts from October 2025 to September 2027 to Sopra Steria Limited. 

3. All aspects of the contracts remain as commissioned. 

3. Financial and Commercial Comments.  

1. The change in structure of delivery of the existing and novation of the new contracts does not change any agreed contractual commitments to cost, governance and responsible procurement. 

2. Both SSCL and Sopra Steria Limited are under the same parent company Sopra Steria Services Limited which has provides Parent Company Guarantee. The MPS assure that neither the subcontracting nor novation amendments will affect financial exposure/risk, because the MPS’s ultimate guarantor remains unchanged. 

4. Legal Comments. 

1. The Mayor’s Office for Policing and Crime (“MOPAC”) is a 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 the Regulations.  The value of the novation exceeds this threshold. 

2. Paragraph 4.13 of the MOPAC Scheme of Delegation and Consent provides that the Deputy Mayor for 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. Paragraph 4.14 of the MOPAC Scheme of Consent and Delegation requires the Deputy Mayor for Policing and Crime (DMPC) to approve any contract novation of a contract value of £500,000 or above. 

4. Regulation 72(1)(d) of the Public Contracts Regulations 2015, states that, contracts and framework agreements may be modified without a new procurement procedure where a new contractor replaces the one to which the contracting authority had initially awarded the contract as a consequence of universal or partial succession into the position of the initial contractor, following corporate restructuring, including takeover, merger, acquisition or insolvency, of another economic operator that fulfils the criteria for qualitative selection initially established, provided that this does not entail other substantial modifications to the contract. 

5. MPS assure that SSL fulfils the criteria to provide the services initially established under regulation 72(1)(d) (ii) of the Public Contracts Regulations 2015.  

5. 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 is subject to the requirements and conditions placed on it as a 'State' body to comply with the European Convention of Human Rights and the Data Protection Act (DPA) 2018. Both legislative requirements place an obligation on the MPS to process personal data fairly and lawfully to safeguard the rights and freedoms of individuals. 

3. Under Article 35 of the General Data Protection Regulation (GDPR) and Section 57 of the DPA 2018, Data Protection Impact Assessments (DPIA) become mandatory for organisations with technologies and processes that are likely to result in a high risk to the rights of the data subjects. 

4. The project does not use personally identifiable data of members of the public, so there are no GDPR issues to be considered. 

6. Equality Comments  

1. There are no equality implications. 

7. Background/supporting papers 

1. MPS Paper -Novation and Subcontracting approval changes of MPS-SSCL contracts.