Consolidated approval to renew selected existing IT Service Contracts

Reference code: 
PCD 333
Date signed: 
27 February 2018
Authorisation name: 
Sophie Linden, Deputy Mayor, Policing and Crime

Executive summary

This report requests approval to renew selected existing IT service contracts. All the contracts are single tender actions as there are no immediate alternative arrangements feasible or possible.  Maximum approval requested is £14.777M p.a. This will be funded from existing or planned budgets.


The Deputy Mayor for Policing and Crime is recommended to approve:
1.    The renewal of existing IT contracts detailed in the attached Consolidated IT Contract Renewal Business Justification Paper.  
2.    The maximum spend against the consolidated contract summary of £14.777M p.a. fully funded from MOPAC approved DP budgets.
3.    To delegate approval to the Director of Commercial Services to complete each of the contracts during 2018/19 within the limits detailed in the contract summary.

And to note:
•    Funding and or cost implications in this request are fully contained within MOPAC approved budgets. 
•    Approval is required by February 2018 to allow renewal of those contracts detailed in the consolidated contract summary due for renewal in March 2018.
•    If there are unforeseen material changes in business requirements, changes to the service provision or available contracting routes during 2018/19 for contracts covered by the contract summary the applicable contract will be brought back to IAB for specific approval where it exceeds Metropolitan Police Service delegated limits.

Non-confidential facts and advice to the Deputy Mayor for Policing and Crime (DMPC)

1.    Introduction and background

1.1.    In Digital Policing there are a number of supplier arrangements where no immediate alternative exists or where the supplier is the only route to market (single tender actions).

1.2.    Traditionally suppliers are unwilling to negotiate on price until the end of the contract, which means Digital Policing and Commercial Services then need to work in condensed timescales to gain approval in time. As a result there are risks to the continuation of existing services and securing best value for money in the short time available.

2.    Issues for consideration

2.1.    The requested consolidated approval would be subject to the renewals being for terms of no longer than three years, being contained within a total of £14.777M p.a. and where there is no material change to the existing provision. 

2.2.    There are two alternative procurement options that are not recommended as they will not provide any additional value and would be both resource intensive and time consuming.
•    Conduct individual OJEU tender exercises. As there is an absence of competition for the requested renewals, undertaking OJEU tender exercises would not generate any additional value and would be extremely time consuming and not a satisfactory use of resources. 
•    Utilise a Crown Commercial Service or other framework agreement. Although using a framework represents a quicker route to market than an OJEU process, there is still an absence of competition due to technical reasons. Nor are there single supplier frameworks with the required vendor available. 

3.    Financial Comments

3.1.    Funding and or cost implications in this request are fully contained within MOPAC approved Digital Policing budgets. 

3.2.    This consolidated list of selected IT contracts assumes the impact of inflation will be no more than £1.343m (10%) fully funded in the Digital Policing budget. 

3.3.    The actual future costs and constituents of the consolidated contract renewals will vary depending on price changes but also the evolution of the technical estate, as services are retired, evolved and new services brought into operation.

4.    Legal Comments

4.1.    Advice should be sought on each proposal to renew an existing contract (prior to final signature and commercial approval) to ensure compliance with MOPAC Governance and EU procurement law.

5.    Equality Comments

5.1.    There are no adverse implications to Equality and Diversity through the approval of these recommendations.

6.    Background/supporting papers

6.1.    Report

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