Key information
Executive summary
This paper request for a single tender action to commence in order to renew the current PRS licence for a further 12 month period from 1 April 2018 to 31 March 2019.
PRS Ltd is the only supplier of the licence and is a non-profit association. The MPS is legally required under the Copyright Designs and Patents Act (CDPA) 1988 to obtain a licence from PRS Ltd to permit the playing of music in its buildings, this is based on the number of staff employed.
This paper also requests that MOPAC delegate authority to the MPS Director of Commercial Services to instigate a single tender action for future annual renewals and to award subsequent contracts to PRS Ltd providing that the annual cost is no more than £250k.
Recommendation
The DMPC is asked to
1. Approve a single tender action procurement exercise for the renewal of a Performing Rights Society (PRS) licence for 2018/19 to PRS Ltd (the only provider of the licence).
2. Approve the cost of the new annual licence at £179,318 for the period 1 April 2018 to 31 March 2019, funding is available within existing budgets.
3. Delegate authority to the MPS Director of Commercial Services to enter into a contract with a single supplier (PRS Ltd: the only provider of the licence).
4. Delegate authority to the MPS Director of Commercial Services to instigate a single tender action for future annual renewals and to award subsequent contracts to PRS Ltd providing that the annual cost is no more than £250K.
Non-confidential facts and advice to the Deputy Mayor for Policing and Crime (DMPC)
1. Introduction and background
1.1. PRS Ltd is the only supplier of the licence. The MPS is legally required under the Copyright Designs and Patents Act (CDPA) 1988 to obtain a licence from PRS Ltd to permit the playing of music in its buildings, this is based on the number of staff employed.
1.2. The licence legally protects the MPS for music played on its premises, including music played on televisions, radios, in rest areas, gymnasiums, canteens and employees having radios on in the background.
2. Issues for consideration
2.1. PRS Ltd is the only supplier of the licence and is a non-profit association. The requirement currently sits outside of the Service Integration and Management (SIAM) Towers model, the contract (once awarded) will be managed by Locally Delivered Support Services (LDSS).
2.2. The absence of a PRS music licence would be considered unauthorised and an infringement of the CDPA 1988.
2.3. MPS have explored the option for a multi-year deal with PRS Ltd. However PRS Ltd can currently only offer annual licences.
2.4. The MPS will have an ongoing requirement to hold a Licence from PRS Ltd.
To avoid the requirement to seek annual approval from MOPAC for the single tender action / contract award it is requested that the MPS Director of Commercial Services be granted the authority to award the contract to PRS Ltd in future years subject to the annual cost not exceeding £250K.
3. Financial Comments
3.1. The cost of the new annual licence is £179,318.65 for the period 1 April 2018 to 31 March 2019, funding is available within existing budget.
3.2. The licence fee calculation incorporates the total numbers of MPS staff/police employees on an annual basis and can be contained within existing budgets.
4. Legal Comments
4.1. Under the CDPA 1988 all exploitation of copyright in music must be in accordance with permission of the copyright holder in the workplace.
4.2. The MOPAC is a contracting authority as defined in the Public Contracts Regulations 2015 (the Regulations). When awarding contracts for services, supplies or works above the relevant threshold all contracting authorities must do so in accordance with the Regulations. This report confirms that the PRS licence fee exceeds the relevant services threshold of £181,302 for goods and services (as from 1 January 2018). Accordingly, the Regulations are engaged. Regulation 32(2)(b)(iii) permits a contracting authority to negotiate directly with a sole economic operator without prior publication of an Official Journal of the European Union (OJEU} notice when, for reasons connected with the protection of exclusive rights, including intellectual property rights, the public contract may be awarded only to a particular economic operator.
4.3. This report confirms that PRS is the only economic operator legally capable of granting this licence. Therefore, the MOPAC can obtain a licence directly from PRS in full compliance with the Regulations under paragraph 4.13 of the MOPAC Scheme of Delegation, authority must be sought from the DMPC for all contract exemptions valued at £100,000 or above.
5. Equality Comments
5.1. Any equality and diversity implications linked to the provision of the PRS licence are considered under the Copyright, Design and Patents Act (CDPA) 1988.
6. Background/supporting papers
6.1. Report
Signed decision document
PCD 343