Non-confidential facts and advice to the Deputy Mayor for Policing and Crime (DMPC)
1. Introduction and background
1.1. In September 2013 Kellogg, Brown and Root (KBR) were appointed as the Facilities Management (FM) Integrator, acting as a first tier supplier for a range of property FM related services, and managing the second tier supply chain. Following a first iteration of second tier tenders and contract awards, a number of these contracts are now scheduled for retender and award.
1.2. The decision to re-tender these contracts was approved in January 2016, DMPCD 2016 09.
2. Issues for consideration
2.1 The nature of the 14 single-supplier framework services are set out in Appendix 1and cover a range of facility management services such as cleaning, grounds maintenance, reprographics and waste management. A full OJEU restricted tender process has been carried out or each of these tenders.
2.2 The length of the contracts vary from an initial 3, 5 and in one instance 7 year term, with options for 2 or 3, 12 month extensions. Prices are fixed for the first 3 years of the contract with further post year 3 increases capped at inflation.
2.3 In all cases bar one the highest overall scoring bidder has been recommended for award. The exception arises from a MPS contract requirement that the same supplier cannot be awarded both of the North and South lots for M&E and General Works.
2.4 The pricing structures have been established to enable the addition or removal of volumes of work in order that changes anticipated arising from the effect of Estates transformation can be taken into account. There is no guarantee of any specific volume of work for these contracts.
2.5 All of the recommended tenderers have confirmed their compliance with the GLA Responsible Procurement policy.
3. Financial Comments
3.1 For all 14 contracts the multi-year framework values accessible to all GLA members, City of London and various police forces is £821.6m. The MPS call-off contract values for all 14 contracts is £447.5m, for which provision has been made in the approved budget.
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 public goods or services contracts valued at £164,176 or above must be procured in accordance with the Regulations.
4.2 This report confirms the framework agreements are eligible for use by the members of the Greater London Authority, the City of London of Corporation and various police forces.
4.3 Paragraph 4.13 of the Scheme provides that the Deputy Mayor for Policing and Crime reserves the right to call in proposals to approve award MPS contracts valued at £500,000 or above.
5. Equality Comments
5.1 There are no equality or diversity implications arising from this report.
6. Background/supporting papers