Disposal of Various Items of Property/Surplus Assets by Public Auction

Reference code: 
PCD 317
Date signed: 
29 January 2018
Authorisation name: 
Sophie Linden, Deputy Mayor, Policing and Crime

Executive summary

The Metropolitan Police Service (MPS), has a requirement for the disposal of various items of property and surplus assets through sale at Public Auctions. 

The MPS Corporate Real Estate programme involves the decommissioning of buildings resulting in various assets being surplus to requirements. These assets (excluding buildings and ICT containing MPS data) are to be split into lots and sold at auction.

The Criminal Exhibits Services (CES) team receive and store a wide variety of items that can be obtained as a direct result of criminal investigations including items seized under the Proceeds of Crime Act (POCA), property found in the street or surplus equipment and office machinery in need of disposal. These items are subsequently split into lots and sold at auction.

The proposed new contract will be for an initial term of 24 months with the option to extend for further periods up to a maximum of 24 months. This will generate a possible income in the region of £1,608,000 for lots 1-3 based on previous auctions.  SCO7 facilitate the sale of items seized under POCA (Lot 4) and the funds raised are set aside for the relevant court. The estimated POCA value is approximately £1,244,000, therefore giving a potential revenue of £2,852,000 for all lots.
 

Recommendation

The DMPC is asked to approve:

1.    Award of contract to Wilson Auctions Ltd and John Pye & Sons Ltd. for a call off contract for 2 years plus the option to extend up to a further 2 years.  This is an income only contract and will generate a value of around £2,852,000 over four years for the MPS.
 

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

1.    Introduction and background

1.1.    The Metropolitan Police Service (MPS), has a requirement for the disposal of various items of property and surplus assets through sale at Public Auctions. 

1.2.    The contract will consist of four lots:
Lot 1 – Jewellery, fine art, antiques and memorabilia (excluding POCA)
Lot 2 – Property found in the street and MOPAC/MPS surplus assets
Lot 3 – Crime related property (excluding POCA)
Lot 4 – Crime related property and initial and on-going valuations (Proceeds of Crime Act)

2.    Issues for consideration

2.1.    The Criminal Exhibits Office at Mandela Way has to store an array of unclaimed property that has been found in the streets by members of the public and taken to local police stations. Items of property that are crime related and have not been traced back to the legal owner are also returned to Mandela Way for subsequent disposal.

2.2.    With the current decommissioning of MPS buildings surplus assets are returned to property services for subsequent sale by auction

3.    Financial Comments

3.1.    The contracts will be for an initial 2 years plus the option to extend up to a further 2 years at an estimated revenue of up to £2,852,000 for the four year period.

3.2.    All figures are estimates, as sales can fluctuate as they are dependent on the volumes of property found or seized over the year; as this is a framework contract there is no guarantee on volumes or revenue.

4.    Legal Comments

4.1.    The Mayor’s Office for Policing and Crime (MOPAC) is a contracting authority as defined in the Public Contracts Regulations 2015 (the Regulations).  All public contracts for goods and services valued at £164,176 or above must be procured in accordance with the Regulations.  This report confirms the value of the proposed contract exceeds the above threshold.  This report confirms that the Regulations were followed for this contract award.  

4.2.    Paragraph 4.13 of the MOPAC Scheme of Delegation and Consent provides that the Deputy Mayor for Policing and Crime has delegated authority to approve all requests to go out to tender for contracts valued at £500,000 or above.

4.3.    Assets seized or obtained are pursuant to Confiscation Orders issued by the Court under the Proceeds of Crime Act (POCA) 2002, Police and Criminal Evidence Act 1984.

4.4.    Crime related property (excluding POCA) is usually sold under the authority of the Police (Property) Regulations 1997.  Other legislation may apply to individual items which will be identified when necessary.


5.    Equality Comments

5.1.    This contract incorporates the sale of MPS surplus assets and memorabilia, in line with the MPS Asset Disposal Strategy and Guidance, published in 2016.  The inclusion of these assets in the contract will ensure that the MPS is adopting a responsible approach to resource management and supporting the circular economy in London.  Previously some of these items would have been disposed of in skips during building closures (and ultimately ending up in landfill).  This new approach ensures best value is obtained for MPS useable assets but also reduces the amount of waste sent to landfill. 

5.2.    The contract includes the requirement for the suppliers to deliver their services in accordance with the MPS Environment Policy and the Mayor of London’s Responsible Procurement Policy.

6.    Background/supporting papers

6.1.       Report
 


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