Collaborative Procurement of Water, Waste Water and Ancillary Services

Reference code: 
PCD 308
Date signed: 
29 January 2018
Authorisation name: 
Sophie Linden, Deputy Mayor, Policing and Crime

Executive summary

This proposal is for the collaborative procurement of water, waste water and ancillary services following the de-regulation of the non-household water market.  It involves collaboration with the London Energy Project, London Boroughs, TfL and LFEPA in a mini-competition from a Crown Commercial Services framework.  The 4-year potential value is £6.2m. 

Recommendation

The DMPC is recommended to approve the collaborative procurement of water and waste water services through the Crown Commercial Services (CCS) Framework for Water, Wastewater and Ancillary Services, accessed by call-off from Yorkshire Purchasing Organisation (YPO), to appoint a single water retailer as coordinated by the London Energy Project (LEP). The resulting water and water waste services contract is forecast to cost £6.194million over the 4 years

Non-confidential facts and advice to the Deputy Mayor for Policing and Crime (DMPC)

1.    Introduction and background

1.1.    As a result of the de-regulation of the non-household water market in April 2017, and Cabinet Office guidance that a competitive process should take place by April 2018, this paper sets out a proposal for a procurement process to meet the guidance and deliver value for money.

2.    Issues for consideration


2.1    As a member of the London Energy Project (LEP)   the Metropolitan Police Service (MPS) has engaged in a process to undertake market engagement to understand the opportunities available to non-household organisations following the de-regulation of the water market.  
2.2    The proposal now is that MOPAC/MPS join the collaborative procurement being managed by LEP, using the Yorkshire Purchasing Organisation (YPO) to carry out a mini-competition from the Crown Commercial Services (CCS) framework for Water, Waste Water and Ancillary Services.
2.3    There is no additional cost to MOPAC/MPS for the LEP managed mini-competition.  Using this route will avoid the need for the MPS to separately undertake its own procurement for this service, and provide opportunities for efficiency gains from reduced supplier margins, consolidated billing, and improved contract and account management.
2.4     In respect of Responsible Procurement the CCS framework considered legislative aspects including equalities and modern slavery. The mini-competition will consider further social value enhancements to be included in the final contract, with a particular focus on water consumption / sustainability / efficiency, etc. and also on employment, business, apprenticeships, etc.
2.5    As there is a water industry price review in 2020, the contract term has been scheduled for an initial 2 year period 2018 to 2020, with an option for a further 2 year extension.


3.    Financial Comments

3.1    Based on the current spend and accounting for inflation and a contingency sum of £295k the 4-year contract value is £6.2m.  The MPS Property Services Directorate have the funding for this expected spend.

  

4.    Legal Comments

4.1    MPS/MOPAC will be required to adopt the standard terms and conditions developed by LEP for all authorities as part of this collaborative procurement action, which will allow the MPS/MOPAC to call off from this procurement framework for water and waste water services.

4.2    The LEP has inserted a clause into the MOU to ensure that the MPS/MOPAC retain the authority not to award contract to the chosen retailer at their discretion.

4.3    Failure for the MPS/MOPAC to competitively retail water services will result in non-compliance under the Public Contract Regulations 2015.


5.    Equality Comments

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


 
6.    Background/supporting papers

MPS Report