Provision of Bulk Fuels

This paper seeks approval to award two call-off agreements via Crown Commercial Services (CCS) Framework (RM3801) for the on-going requirement of Bulk Fuels. The agreement value is estimated at £3.25m per annum based on historical usage and spends.

MOPAC approved the procurement initiation in June 2017 (PCD 215), the value approved for the MPS spend is £13m over a 4 year term.

The provision of bulk fuel plays a key role in support of the day to day operation of the MPS fleet and also contributes to the contingency plans for all London’s emergency services during any fuel shortages or disruption to the fuel supply chain.

The DMPC is asked to;

1. Approval to award two call-off agreements via CCS for the Provision of Liquid Fuels valued at £6.5m each with; Certas Energy UK Ltd and WFL (UK) Ltd/t/a Hall Fuels

• The total estimated cost of the contract is £13m over a 4-year period (£3.25m per annum). This will be met from devolved fuel budgets across the MPS

• The call-off agreements will be for 2 years with two optional 1 year extensions (2+1+1)

• The agreement commencement date is 1st April 2018

1. Introduction and background

1.1. The provision of bulk fuel plays a key role in support of the day to day operation of the MPS fleet and also contributes to the contingency plans for all London’s emergency services during any fuel shortages or disruption to the fuel supply chain. In the event of an industrial action affecting the fuel supply MPS is required to provide a critical fuel reserve to ensure continuation of operational policing for a minimum of 10 days, before the national emergency plan for fuel is invoked by the Department of Energy and Climate Change.

2. Issues for consideration

2.1. To support the Mayor’s ambition for London to become a zero emission city, Fleet Services will be working towards the interim target of phasing out fossil diesel use by 2030. Within the duration of this contract alternative non-fossil diesel will be explored and once the feasible solution is identified trials will be undertaken. Working in conjunction with Property Services, Fleet Services will refine the bulk storage strategy in line with the reducing volume of diesel vehicles.

2.2. The GLA utilised the CCS framework for their fuel requirements and was part of the competition conducted by CCS on behalf of all public sector bodies in August 2017, each authority is now required to award their own call-off agreements from the framework. The GLA usage volume would have been considered as part of the wider combined volume in the competition (as well as the MPS’), as such this has had the same effect and benefits as a more formal collaborative exercise would have achieved.

3. Financial Comments

3.1. The agreement value is estimated at £3.25m per annum. This will be met from existing devolved fuel budgets (revenue) across the MPS.

4. Legal Comments

4.1. There are no direct legal implications arising from this report. Call off from a current Framework Agreement that is accessible to the MPS is a compliant route to market in accordance with the Public Contracts Regulations 2015.

5. Equality Comments

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

6. Background/supporting papers

6.1. Report.