Fleet Support Contracts

Reference code: 
PCD 430
Date signed: 
24 July 2018
Authorisation name: 
Sophie Linden, Deputy Mayor, Policing and Crime

Executive summary

The Metropolitan Police Service (MPS) is seeking approval to initiate procurement action to secure extensions for four critical fleet support contracts, delegated authority to the Director of Commercial Services to provide consent to award those contract extensions, and use reserves to fund a revenue affordability gap.
•    The provision of vehicle repair and maintenance, supply of mountain bikes and accessories, and servicing and repair of mountain bikes contracts with Babcock Critical Services, and provision of vehicle equipping service contract with Babcock Vehicle Engineering expire on 31st October 2018.  
•    To ensure continuation of services to the MPS it is critical that extensions are secured to all four contracts.
•    The duration of the extended contracts is anticipated to be 24 months.
•    The contracts are valued at £77.8m in total. The extensions are broadly in line with current expenditure.
•    The capital implications remain affordable within the approved Fleet Capital Programme 2017-18 to 2021-22.
•    Revenue reserves are required of £3m in 2018/19 and a further £8.2m of revenue spend is to be incorporated into the current medium-term budget process from 2019/20.
•    The updated FBC in relation to the Fleet Managed Service Provider is expected to be submitted to PIB in September.
 

Recommendation

The Deputy Mayor for Policing and Crime is recommended to:
1.    Approve the initiation of procurement action for an extension to the Babcock Critical Services provision of vehicle repair and maintenance contract valued at £58.5m.
2.    Approve the initiation of procurement action for an extension to the Babcock Critical Services supply of mountain bikes and accessories contract valued at £100,000.
3.    Approve the initiation of procurement action for an extension to the Babcock Critical Services repair of mountain bikes contracts valued at £500,000.
4.    Approve the initiation of procurement action for an extension to the Babcock Vehicle Engineering provision of vehicle equipping service contract valued at £18.7m.
5.    Delegate authority to the Director of Commercial Services to provide consent to award the above four contract extensions within the financial limits set out above on successful completion of the procurement process.
6.    Approve the use of £3m revenue reserves in 2018/19 and a further £8.2m of revenue spend is to be incorporated into the medium-term budget process from 2019/20. 
 

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

1.    Introduction and background

1.1.    These contract extensions will facilitate the continued maintenance of the overt fleet, conversion of all vehicles, supply of mountain bikes, repair of mountain bikes, and continuation of services until a new Managed Service Provider contract can be approved and services transitioned.

1.2.    Babcock Critical Services maintains, repairs and administers the overt fleet, along with providing the MPS with access to lease and short-term hire vehicles. Two separate contracts also cover the supply and maintenance of mountain bikes.

1.3.    Babcock Vehicle Engineering converts all MPS vehicles entering operational service and decommission all life-expired assets.

2.    Issues for consideration

2.1.    The implementation of the Ultra-Low Emission Zone is scheduled to be brought forward by 17 months to April 2019 and will affect all vehicles travelling within the existing congestion charge zone.  

2.2.    The timely conversion of vehicles for operational police roles is essential to meet the aspirations of operating a compliant fleet within the congestion charge zone.

3.    Financial Comments

3.1.    The capital implications remain affordable within the approved Fleet Capital Programme 2017-18 to 2021-22. Further details contained in Part 2.

4.    Legal Comments

4.1.    Legal advice has been sought from TLT, who have advised on the procurement of a Fleet Managed Service Provider, and the Directorate of Legal Services.

4.2.    An extension will be sought under regulation 72(1)(e), which provides that the contract ‘may be modified without a new procurement procedure’ ‘where the modifications, irrespective of their value, are not substantial within the meaning of paragraph (8)’. DLS are of the opinion that the extensions do not appear to be modifications which are substantial under r72(8).

4.3.    The Scheme of Delegation and Consent delegated approval to DMPC to approve ‘all unforeseen extensions to contracts with an original value of £500,000 and above, when the variation or extension is greater than 10% of the original value and/or is for a period of more than 12 months’

5.    Equality Comments

5.1.    There are no negative equality or diversity implications arising from the procurement process. 

6.    Background/supporting papers

6.1.    Report


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