Data Centre Managed Service Tower Contract Extension

This paper seeks approval to exercise an optional extension of up to 2 years (with break point options throughout the extended period), and uplift the value of the Data Centre Managed Services Contract (DCMS), provided by Keysource, by 50% of its original value, from £6.807m to £10.210m in line with the Public Contract Regulations 2015. The extension will enable service provision to continue beyond the initial contract term and provide contingency for projected digital transformation and improvement projects in support of wider transformation by the Metropolitan Police Service to improve services and focus resources on operational policing.

The Deputy Mayor for Policing and Crime is recommended to:

1. Approve optional extension of up to 2 years;

2. Approve an uplift of the total contract value of the Data Centre Managed Services Tower contract with Keysource from the original contract value of £6.807m to £10.210m. This is not a request for additional funding or budget growth. This decision is required to ensure legal compliance of the contract in line with projected delivery via the contract.

1. Introduction and background

1.1. The Data Centre Management Services Agreement is for an initial term of 3 years (commenced on 01/09/2015) and has the option to extend for a further period of up to two 1 year extensions, by serving notice at least 4 months prior to expiry of the initial term or 4 months before the end of the First Extension Period (if electing to extend the First Extension Period).

2. Issues for consideration

2.1. Keysource have been engaged on works to assist other suppliers within the SIAM/Towers model, as an enabler for further DP transformation over the coming 12-24 Months.

2.2. In addition, Keysource are already engaged and will continue to be required to support the Network Tower Agreement LAN/WAN Upgrade project with BT.

2.3. Proposals for the above are currently being reviewed and considered. If accepted, future works will form part of the uplifted contract ceiling value.

3. Financial Comments

3.1. This extension is to raise the ceiling value on the contract from £6.807m to £10.210m. It does not lead to any funding implications.

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). Awards of public contracts for good and/or service valued at £181,302 or above must be procured and/or modified in accordance with the Regulations. The report confirms the original value of the DCMS contract over the full five year term is £6.807m. Accordingly, the Regulations are engaged.

4.2. The report requests an extension of the contract term and an increase to the original contract value of £6.807m which applied to full contract period of five years. Regulation 72 sets out the grounds for compliantly modifying public contracts during their term without the need for a new procurement exercise.

4.3. The report confirms the contract terms and conditions expressly provide for the option to extend as proposed in this report. The proposed extension is compliant with the Regulations (regulation 72(1)(a)).

4.4. This report identifies, albeit at a high level, a number of technical and economic reasons which would cause MOPAC to suffer significant inconvenience/substantial costs duplication if the MOPAC was to change contractor. On the basis these factual elements can be clearly demonstrated to be accurate and true then regulation 72(1)(b) will be met. The report confirms the increase in value does not exceed 50% of the original contract value.

5. Equality Comments

5.1. No issues identified during consultation.

6. Background/supporting papers

6.1. Report