Supply of Replacement Marine Vessels

This business justification paper seeks approval to award contracts to the value of £5.3M for the purchase of replacement marine vessels used by the Metropolitan Police Service (MPS) Marine Police Unit.

These replacement marine vessels will enable the MPS to meet its strategic targets and ensures it remains a mobile service capable of responding proactively to crime and policing matters, combating terrorism and protecting those living and working in and around the river Thames.

The Deputy Mayor for Policing and Crime is recommended to:

1. Approve the contract award to Babcock Marine Energy Ltd for Lot 1 Command and Control Vessels valued at £1.8M with a 3+1 year contract term, to commence in August 2020.

2. Approve the contract award to Babcock Marine Energy Ltd for Lot 2 Fast Patrol Vessels valued at £3.5M with a 3+1 year contract term, to commence in August 2020.

3. To note MPS has undertaken the procurement process in accordance with the Public Contracts Regulations 2015 via the Official Journal of European Union.

1. Introduction and background

1.1. The MPS has set out objectives in its strategy document, the Met’s Direction: Our Strategy 2020-2025. To support this strategic approach, the fleet asset management objectives will be based on the ISO 55001 / ISO 55002 asset management standard and Fleet Services aspire to work towards accreditation to support the following key objectives:

a) Deliver a fit-for-purpose, available and flexible fleet for all officers and staff;

b) Manage the fleet effectively and efficiently using data-driven decision-making; and

c) Support users and staff working on the fleet through any operational/strategic changes.

1.2. The MPS is part of the Greater London Authority (“GLA”), and therefore, the MPS has a number of strategic air quality targets to meet by October 2023 and further to 2025. The timely replacement of the MPS ageing marine fleet will be key to ensure we continue to meet emissions standards, in addition to achieving the MPS strategic objectives in relation to:

a) Fleet safety;

b) Quality and availability of assets and equipment;

c) Value for money; and

d) Technology and innovation.

1.3. The MPS has a requirement to purchase new vessels built in accordance with Code A of the Police Boat Codes (PBC3) without exception and as accepted by the Maritime and Coastguard Association (MCA). The new vessels are required to replace the current ageing fleet of Fast Patrol Vessel (“FPV”) and Command and Control Vessel (“CCV”).

1.4. The operating environment for these vessels is primarily fast tidal river and estuary (tide speed can be in excess of 4 knots), containing driftwood, debris, flotsam, etc. This hostile environment, coupled with excessive use of aging vessels, contributes to excessive repair and maintenance.

1.5. By purchasing new vessels, the MPS will be at the forefront of new marine technologies, including laminating techniques (which ensure a lighter stronger hull) and the latest engine developments (which ensure lower emissions and improved fuel economy). The hull and deck structure will be built to class under Lloyds or a similar certifying authority. The vessels will meet EU Recreational Craft Directive (RCD) Code B as a minimum and ideally Code A.

2. Issues for consideration

2.1. Collaboration with London Fire Brigade and Kent and Essex Police was explored However, this was not possible, as at the time the Kent and Essex Police Forces were considering reducing their combined marine involvement, whilst the London Fire Brigades’ requirements were not consistent with MPS technical requirements due to the unique nature of their operation and hull construction and use in shallow water which differ substantially from the MPS requirements.

2.2. The MPS continues to review the operational requirements to Police the river Thames and the review is expected to completed by Q3 2020.

2.3. The MPS will work with the Port of London Authority to drive the change in emissions on the river Thames and will seek collaboration opportunities to develop new technology to reduce the emissions from our vessels.

2.4. At the time of the completing the tender, Volvo do not have any emission reduction technology that would be suitable for the MPS. If during the lifetime of the vessels this technology becomes available the MPS will explore retro fitment.

3. Financial Comments

3.1. The combined contracts are valued at £5.3M with an initial contract duration of three years with an option to extend for one year.

3.2. Approval to initiate procurement action was sought in September 2017 (PCD254) as part of the MPS Vehicle Replacement Programme 2018-21 the award of the contracts is within the initial values approved.

3.3. Funding for replacement marine vessels in included in the long term Fleet Services capital plan approved in February 2020.

4. Legal Comments

4.1. The Mayor's Office for Policing Crime 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 £181,302 or above will be procured in accordance with the Regulations.

4.2. Paragraph 4.8 of the MOPAC Scheme of Delegation and Consent provides that the Deputy Mayor for Policing and Crime (DMPC) has delegated authority to approve business cases for revenue or capital expenditure of £500,000 or above.

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 requests to go out to tender for contracts of £500,000 or above.

5. Commercial Issues

5.1. Due to the high value and specialist nature of the replacement vessels, the MPS has undertaken a procurement process in accordance with the Public Contracts Regulations 2015 (PCR) via the Official Journal of European Union (OJEU).

5.2. Market engagement to the external market was conducted by issue of a Prior Information Notice (PIN) in July 2018 via the e-tendering portal, which indicated a reasonable amount of interest from suppliers against MPS requirements.

5.3. The tender results detailed in the restricted section of the report identify the highest scoring successful supplier (Babcock Marine Energy Ltd) against Lot 1 and Lot 2.

5.4. Babcock Marine Energy Ltd tendered in this process as the principle supplier, sub-contracting to Wessex Marine. Wessex’s most dominant UK brand is Targa boats, which are constructed by the family firm of OY Botnia Marin AB. The Targa boat is the brand leader in the UK market in both recreational and commercial roles.

5.5. The tender was based on non-committed volume and value and therefore the commercial price evaluated is the unit price. This excludes price breaks which assume volume commitment which cannot be agreed at this stage with the supplier.

5.6. Further value for money and price break information is contained in the restricted section of the report.

6. GDPR and Data Privacy

6.1. GDPR matters have been discussed with the Data Protection Officer, who has confirmed that no Data Protection Impact Assessment (DPIA) is required for these programmes of work. However, the personal details of any individuals or organisations with whom contact is made for the purposes of the engagement will be managed in accordance with MOPAC’s wider Privacy Notice. Any organisation that is contracted to conduct work in support of this programme will be required to sign a MOPAC contract that will specify their GDPR responsibilities.

7. Equality Comments

7.1. The equality and diversity impact has been considered with no issues identified or foreseen. All select service providers will be evaluated for acceptable equality and diversity statements, as well as their ability to comply with the Equality Act 2010. The evaluation exercise has considered their ability to act as a responsible employer and meet employment obligations deemed commensurate with wider GLA objectives.

7.2. Equalities considerations have been taken into account, particularly concerning the vessels manufacturer’s cabin space design, which includes seat and column adjustments. These considerations are further enhanced through being able to request detailed design specifications.

7.3. Using a European standard to select service providers who meet equality and diversity criteria, tendered the purchase agreement for the supply of marine vessels and associated services to the UK public sector.

7.4. Fleet Services acknowledges its responsibilities towards its staff and the members of London’s diverse communities and will engage with, and value the contributions of, communities and its partners and continue to nurture positive relationships of constructive support

8. Background/supporting papers

8.1. The MPS report.