Contract Award for Supply Fitting and Disposal of Tyres

This business justification paper seeks approval for the award of two contracts with a combined value of £1.885M for the Supply, Fit and Disposal of Tyres to enable Metropolitan Police Service (MPS) to maintain its specialist and covert vehicles.

The MPS procurement process will be in accordance with the Public Contracts Regulations 2015 via the Crown Commercial Services Supply and Fit Tyres framework RM3767.

The supply, fit and disposal of tyres is essential to ensure the MPS fleet remains safe and legal to operate to meet its legal obligation to ensure the safety of its drivers and other road users and provide a tyre disposal service that is compliant with environmental regulations.

The Deputy Mayor for Policing and Crime is recommended to:

1. Approve direct contract award for the supply, fit and disposal of tyres to the following suppliers via the Crown Commercial Services Supply and Fit Tyres framework RM3767 in compliance with the Public Contracts Regulations 2015:

• Goodyear Dunlop Tyres UK Ltd with a contract award value at £1,345,000 at £336,000 per annum, funded from existing approved revenue budgets for a four-year term commencing from 1 October 2021.

• Michelin Tyres PLC with a contract award value at £540,000 at £135,000 per annum, funded from existing approved revenue budgets for a four-year term commencing from 1st October 2021.

1. Introduction and background

1.1. The MPS is transforming in response to changes in crime, finances and public expectations of policing, which has significant consequences for the MPS fleet. The MPS has set out the Met’s Direction: Our Strategy 2018-2025 objectives to focus its policing activity on the following:

a) Focus on what matters most to Londoners

• Preventing high-harm offences;

• Protection for those at greatest risk and pursuing the most dangerous; and

• Reducing the public’s fear of crime.

b) Mobilise partners and public

• Greater public awareness and engagement;

• More active citizens; and

• Clearer expectations of partners.

c) Achieve the best outcomes in the pursuit of justice and in support of victims

• More victims satisfied with the MPS service;

• Fair treatment of all victims; and

• More crime solved and resolved.

1.2. Approval of these contracts will enable Fleet Services to maintain MPS covert and specialist vehicles and meet MPS operational needs.

1.3. In addition to above the award of these contracts will allow the MPS to meet its tyre policy requirements which includes vehicles to be fitted with the same make and specification of tyres. Currently approximately 94% of MPS vehicles are fitted with Goodyear Dunlop and Michelin tyres, the cost of changing tyres to an alternative make of tyre would be significant to the MPS.

2. Issues for consideration

2.1. The MPS currently operates a diverse range of covert and specialist fleet of approximately 1334 vehicles each of which will require regular tyre replacement due to usage wear and tear, deterioration with age and damage.

2.2. The existing support contracts with Goodyear Dunlop Tyres UK Ltd and Michelin Tyres PLC are due to expire on the 10th October 2021.

2.3. The contracts for Supply, Fit and Disposal of Tyres are essential to enable the MPS to maintain its covert and specialist fleet, ensuring the fleet remains safe and legal to operate and provide tyre disposal services that are compliant with environmental regulations.

2.4. An existing CCS framework for the Supply and Fit of Tyres includes mobile fitting for roadside assistance and tyre disposal. This is the preferred route to market as it is associated to blue light emergency services, meets the scope of MPS requirements allows immediate access to a compliant route to market in line with EU regulations, offers pre-qualified suppliers, benefit of aggregated public sector volume and spend and associated benefits with an increased leverage in the market and reduced procurement timescales.

2.5. The CCS framework will expire 10th October 2021.

2.6. Collaboration opportunities were explored with GLA (LAS, LFB and TFL) and the City of London Police. Although interested they did not confirm volumes which could be included in this tender.

2.7. The CCS framework offers a fixed pricing schedule dependant on the tyre specification and vehicle application and is available to all UK Police and emergency services. This drives standardisation within UK Police forces and ensures that forces who use the framework are paying consistent prices regardless of fleet size or volumes purchased. Neither supplier offered additional volume discounts.

2.8. The Environment and Sustainability policy and the MPS Environment & Sustainability Strategy 2019-2021 have been taken into consideration. The specification of requirements for the supply, fit and disposal of tyres will capture the MPS responsible procurement requirements in addition to the provisions available via the CCS framework such as legislative compliance. The service solution through this contract includes collection from workshop of used and damaged vehicle tyres and those replaced at roadside. These are retreated and shredded to be used in surfaces for sports grounds, play areas or in roads or utilised in energy intensive industries.

3. Financial Comments

3.1. The contracts have a combined value of £1.885M over a 4-year term and an estimated spend of £1.878M, the variance being for the contract headroom. Existing revenue budgets will cover this charge.

4. Legal Comments

4.1. The Mayor’s Office for Policing and Crime (MOPAC) is a contracting authority as defined in the Public Contracts Regulations 2015 (“the Regulations”). When awarding public contracts for goods and services valued at £189,330 or above, all contracting authorities must do so in accordance with the Regulations.

4.2. This paper confirms the value of the proposed contracts exceed this threshold and so the Regulations are engaged.

4.3. This report identifies a Crown Commercial Services framework agreement as MOPAC’s procurement route for the two contracts. A compliantly-procured framework agreement shall constitute a compliant route to market on the basis the framework is still in force, MOPAC is identified as an eligible user of the framework, MOPAC's requirements are within the technical and financial scope of the framework and the call-off procedure set out in the framework is followed. The management and commercial case sections within this paper confirm that the above are met.

4.4. The MOPAC Scheme of Delegation and Consent provides the Deputy Mayor for Policing and Crime (“DMPC”) has delegated authority to approve:

1. Business cases for revenue or capital expenditure of £500,000 and above (paragraph 4.8); and

2. All contract exemptions for £100,000 or above and the procurement strategy for all revenue and capital contracts of a total value of £500,000 or above (paragraph 4.13).

4.5. 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

5.1. The framework is divided into 2 Lots:

• Lot 1 is for the police and emergency services. It covers fitting at supplier premises, customer premises, mobile fitting services and emergency breakdown services. A single supplier has been appointed: Goodyear Dunlop Tyres UK Ltd.

• Lot 2 is a multi-supplier lot for the supply and fit of tyres and associated services for use by all government and the public sector organisations. Suppliers appointed to this lot are Goodyear Dunlop Tyres UK Ltd, Michelin Tyre Plc and ATS Euromaster Ltd.

5.2. Call-off agreements with suppliers will be conducted in accordance with the Public Contracts Regulations 2015 (PCR) via the Crown Commercial Services Supply and Fit of Tyres framework (RM3767) valid for use until 10 October 2021.

5.3. In order to have access to the diverse range of Goodyear Dunlop and Michelin tyres the MPS request approval to direct award contracts to both Goodyear Dunlop Tyres UK Ltd under Lot 1 and Michelin Tyres Plc under Lot 2. Sourcing the make of tyres required directly from the manufacturers will achieve better value for money and ensure the required stock holding.

5.4. The procurement strategy complies with the purchasing procedures set out in the framework and the requirement set out in this report is within the financial and technical scope of the framework.

5.5. Framework pricing is fixed and any changes are agreed by CCS before being implemented; it is based on the aggregated volume through framework, no further discount is available from the suppliers.

5.6. The CCS Supply and Fit of Tyres framework RM3767 supports public sector bodies in being able to contract award ensuring Responsible Procurement has been considered. By utilising the framework the MPS benefits from being part of a national procurement solution but also ensures that it is supporting local economies and SMEs.

5.7. The MPS can at any time in future, re-tender this opportunity under the new CCS framework arrangements, if the MPS decides this maybe favourable.

6. GDPR and Data Privacy

6.1. 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 in order to safeguard the rights and freedoms of individuals.

6.2. 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.

6.3. The Information Assurance and Information Rights units within MPS will be consulted at all stages to ensure the project meets its compliance requirements.

6.4. Personal data is not required or stored.

6.5. Supply, fit and disposal of tyres does not use personally identifiable data of members of the public or Met personnel, aside from essential basic contact details necessary to ensure the discharge of the contract, so there are no GDPR issues to be considered.

7. Equality Comments

7.1. There are no negative equality or diversity implications arising from this procurement process. The Call Off agreement for the Supply, Fit and Disposal of Tyres will ensure suppliers adhere to perform their obligations in accordance with equality law.

7.2. In addition, it should be noted that the MPS support the Mayor’s Responsible Procurement Policy including: Enhancing Social Value, Encouraging Equality and diversity, Embedding fair employment practices, Enabling skills, training and employment opportunities, promoting ethical sourcing practices and improving environmental sustainability.

8. Background/supporting papers

8.1. Report