Laundry and Cell Blanket Services Contract Uplift

This paper seeks approval for an uplift in the contract value of £1,496,067 for the provision of the laundry and cell blanket services contract. The uplift is compliant with Public Contract Regulations and will be funded from within existing MPS budgets.

The Deputy Mayor for Policing and Crime is recommended to:

Approve the uplift in the value of the Laundry and Cell Blanket Services contract with Marshall Laundry Services Ltd by £1,496,067 which is 35% of the original contract value approved by MOPAC

1. Introduction and background

1.1. MOPAC approved the contract award for the supply of the laundry and cell blanket services in 2018 for an initial 5 year term, with the option to extend by two 1 year periods.

1.2. This paper seeks approval for a contract value uplift to enable the extension periods to be awarded.

2. Issues for consideration

2.1. This paper seeks approval to realign the contract’s initially under-estimated annual spend to the current rate of annual spend. The new value of the contract for the 5+1+1 year term will be £5,728,851 against the originally approved value of £4,232,783 for the 5+1+1 Year term. The intention is to exercise the full optional extension of 1+1 years for this contract under delegated authority.

2.2. The reason for the need to approve a contract value uplift now is due to spend on reactive activities being in excess of the expected volumes at contract award. The reasons for the additional activity are improvements in stock control and speed of delivery reducing some of the planned delivery in favour of reactive ordering, a greater focus on detainee welfare where additional blankets are provided on request as well as other laundry additions for drying following showering, and additional blankets disposed of and new ones required in the early stages of the Covid-19 pandemic.

3. Financial Comments

3.1. The estimated contract value uplift required to the end of the planned seven year term is £1,496,067. The MPS assure that this will be met from within existing budgets.

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”). All awards of, and modifications to, public contracts for goods and/or services valued at £213,477 or above shall be procured in accordance with the Regulations. This report confirms both the value of the original contract and the proposed modification exceeds this threshold.

4.2. The MPS assure that the proposed contract value uplift is within the Public Contracts Regulations 2015.

4.3. 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.

5. Commercial Issues

5.1. The contract for the laundry and cell blanket service was awarded for a up to 7 year term at a value of £4,232,784. The MPS has delegated authority to award the two 1 year extensions which it plans to do.

5.2. Due to additional activity the contract value needs to be uplifted by £1,496,067, 35% of the original contract value. The award of the extension will be to a performing supplier and based on the 2018 prices bid (plus inflation). The extensions will avoid the costs involved in a re-procurement and avoid exposure to potential market increases.

5.3. The MPS assure that while this is not a new procurement within the existing contract the supplier will be asked to confirm how they will contribute and commit to the delivery of the key principles of the London Anchor Institutions’ Charter.

6. GDPR and Data Privacy

6.1. 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.

6.2. The MPS assure that there is no use of personal information in regard to staff or public within this contract, and so there are no GDPR issues.

7. Equality Comments

7.1. 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.

7.2. The MPS assure that as this paper relates to an extension period to existing contract and a request to agree a financial contract value uplift there is no equality implication in regard to this paper.

8. Background/supporting papers

• Appendix 1 MPS Report - Laundry and Cell Blanket Services Purchase Order (PO) Uplift