Facilities Management (FM) Integrator Services – Contract Variation

Reference code: 
PCD 295
Date signed: 
29 November 2017
Authorisation name: 
Sophie Linden, Deputy Mayor, Policing and Crime

Executive summary

The multi-year increase in the contract value is due to a) investment of £3.1m to upgrade the Building Management System which is expected to generate both energy savings and reduce costs such as engineer call outs, and b) a range of volume, price and in-scope changes accounting for £3.7m e.g. inflation, help desk volume increase, CDM Regulations work and compliance audits work.  The costs will be met from within existing budgets. 

Recommendation

The DMPC is recommended to approve an increase in the FM contract of £6.8m, from £39.5m to £46.3m, to provide for changes to the FM Integrator contract

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. 

2.    Issues for consideration

2.1    The proposed change to the contract value will enable the investment of £3.1m for an upgrade in a Building Management System (BMS) to enhance the existing system. This will enable the optimisation of the use of buildings which will become more densely occupied and utilised. The investment is expected to generate annual savings of £900,000 from improved energy efficiency and reduced costs such as fewer engineer call outs.

2.2     In addition, the increase in the contract value will address additional costs arising from an increased volume of work i.e. additional calls to the helpdesk, inflationary increases, and extensions to the range of work undertaken by KBR which are in-scope of the contract such as undertaking compliance audits and Construction Design and Management (CDM) Regulations

3.    Financial Comments

3.1    The increase in the contract value over multiple years is estimated to be £6.8m. This will be funded from existing budgets.

4.    Legal Comments

4.1    All the further identified services are within the scope of the Integrator contract with KBR, as published in the original OJEU notice 2012.  

5.    Equality Comments

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

6.    Background/supporting papers

MPS Report