Fleet Managed Service Provision

The MPS is seeking approval to extend two contracts with Babcock for 12 months, whilst the Full Business Case for the Fleet Managed Service Provision is updated.

The DMPC is asked to

1. Agree that the Full Business Case (FBC) should be updated and be resubmitted to the Portfolio Investment Board and MOPAC in Quarter 4 of 2017/18.

2. Approve the extension of two contracts with Babcock 12 months at an estimated value of £40m to allow time for the FBC to be updated.

1. Introduction and background

1.1 The MPS has is requesting approval to negotiate and award a 12 month extension to the current contracts with Babcock until October 2018. The current contracts for Vehicle Maintenance and Hire & Vehicle Conversion expire in October 2017. The extensions will be subject to there being no change to the current terms and charges being calculated in accordance with the Financial Model.

1.2 During the 12 month extension period, the Full Business Case for the Fleet Managed Service Provision will be updated.

2. Issues for consideration

2.1. See the Part 2 for details.

3. Financial Comments

3.1 The cost of extending the two contracts will be funded from existing resources.

4. Legal Comments

4.1. The Directorate of Legal Services and TLT LLP Solicitors have provided advice throughout this procurement.

5. Equality Comments

5.1. There are no direct equality or diversity implications arising from this report

6. Background/supporting papers

6.1. Briefing note.