Key information
Executive summary
This paper seeks approval to initiate a procurement and contract award to Insight (Direct) UK Limited with a value of up to £50m. The MPS are also seeking approval to initiate the procurement process of the long term replacement of the VAR contract.
Recommendation
The Deputy Mayor for Policing and Crime is asked to:
1. Approve the initiation and award of a one year Value Added Reseller contract to Insight (Direct) UK Limited with a value of up to £50m.
2. Approve the initiation of a new procurement for the long term replacement of the Value Added Reseller contract.
Non-confidential facts and advice to the Deputy Mayor for Policing and Crime (DMPC)
1. Introduction and background
1.1 A Value Added Reseller (VAR) is a supplier who provides IT services and is able to negotiate wholesale prices on many goods and services such as:
• Microsoft licences
• Hardware and software
• Maintenance agreements
1.2 The benefit to the MPS is reduced costs and a more dedicated service from the VAR supplier. The VAR contract with Insight Direct is an essential tool in maintaining an efficient, effective and compliant route to market to source a wide range of goods and services that do not fall into the scope of the SIAM Towers model.
1.3 The MPS has been able to benefit from Insight Direct’s technology market knowledge to obtain negotiated fees for the Microsoft Enterprise Licences, included a saving of £4.57m. The success of the VAR contract has resulted in the contract value being reached twelve months before the end of the current contract.
2. Issues for consideration
2.1. The current VAR contract with Insight (Direct) UK Limited is an important tool in supporting many essential services within the MPS. Without the VAR contract the MPS would run the risk of potential late renewal of contracts, which could incur reinstatement fees and other penalties.
3. Financial Comments
3.1. Business areas wishing to use the VAR contract will be required to ensure funding is available. Financial approval will still be required on a case by case basis through the appropriate purchasing tools such as iBuy.
3.2. The Commercial Team will review all requirements over £50,000 to establish, if the VAR contract is the most appropriate route to market. This is a control mechanism that has been introduced to ensure the VAR contract is not exhausted before the end of the contract term.
4. Legal Comments
4.1. The direct award of this contract will be made from the Health Trust Europe (HTE) Framework. The framework has enabled access for all police forces, as such the MPS is an approved user. The Directorate of Legal Services has confirmed the use of the HTE Framework is a compliant route to market.
4.2. In accordance with the MOPAC Scheme of Consent and Delegation approval is required by the Deputy Mayor for Policing and Crime for all MPS requests to go out to tender for contracts of £500,000 or above, and to approve contract exemptions (such as direct awards).
5. Equality Comments
5.1. There are no adverse equality and diversity impacts of the proposed procurement.
6. Background/supporting papers
6.1. Report.
Signed decision document
PCD 210