Fleet Support Tenders

Reference code: 
PCD 406
Date signed: 
11 June 2018
Authorisation name: 
Sophie Linden, Deputy Mayor, Policing and Crime

Executive summary

The Metropolitan Police Service (MPS) are seeking approval to initiate two procurement actions via framework agreements, one extension and one direct award contained within this report to support the operational fleet.   

Fleet Services have a requirement for the Provision of Agency Fuel Cards and Associated Services (including a request for a direct award under the existing terms and conditions (SS2/13/22) with the current provider) the Provision of Vehicle Data Recorder (Telematics) System and the Provision of Vehicle Workshop Tools, Consumables & Cleaning Materials (extension) under agreement SS3/14/186.    

•    The combined value of all procurement actions is £50.7M (including spend for the extension & direct award).
•    The contracts (Agency Fuel Card and Vehicle Data Recorder (Telematics)) systems are expected to be awarded for a duration of up to 48 months.
•    The extension for the provision of Vehicle Workshop Tools, Consumables & Cleaning Materials (SS3/14/186) is to be extended up to a period of 12 months. This will enable the MPS to explore a collaboration opportunity with other authorities including blue light services.
•    The Provision of Agency Fuel Cards (SS2/13/22) direct award is for a period of up to 6 months.

The procurement actions will not commit the MPS to any guaranteed volume or expenditure; this will provide flexibility to meet changes in operational and financial demands.
 

Recommendation

The DMPC is asked to:
1.    Approve the procurement initiation for the Provision of Agency Fuel Cards and Associated Services, the estimated contract value is £40.0M over a 4-year term commencing 1 July 2019.
2.    Approve a direct award for six months to 30 June 2019 for the Provision of Agency Fuel Cards (SS2/13/22) with the current supplier Allstar Business Solutions Ltd.  The existing agreement is due expire 31st December 2018.
3.    Approve the procurement initiation for the Provision of Vehicle Data Recorder (Telematics) System; the estimated contract value is £4.9M over a 4-year term commencing May 2018.
4.    Approve a 12-month extension to 31 July 2019 for the Provision of Vehicle Workshop Tools, Consumables and Cleaning Materials (SS3/14/186) with the current supplier Andrew Page Ltd, £244k. The current contract is due to expire 31st July 2018.  This will enable the MPS to explore a collaboration opportunity with other authorities including blue light services.
 

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

​​​​1.    Introduction and background

1.1.    The core service requirement of Fleet Services is to deliver the right vehicles and equipment at the right time, in the right place, and in the most cost-effective way.

1.2.    These contracts will continue to provide a safe fleet, ensure value for money, minimise maintenance spend and maximise operational vehicle availability.

1.3.    This report complements the Annual Vehicle Replacement Programme, which covers disposal and replacement activity for all cars, vans, minibuses, motorcycles and large goods vehicles, along with Marine Vessels and items of plant and equipment.

2.    Issues for consideration

2.1.    The MPS require a multi supplier solution for the provision of a range of fuel cards and associated services providing regional, nationwide and European coverage, to assist in managing and controlling costs, providing an easy method of payment for fuel and detailed management information to aid efficient fleet management. 

2.2.    CCS awarded the new framework for Fuel Cards (RM6000) in March 2018, the relevant documentation to support new tender activity will be made available by 13th May 2018 (estimated timeframe).

2.3.    The MPS requires a Vehicle Data Recorder system that will allow for real time asset tracking and will enable detailed information to be gathered on asset utilisation, driver behaviour and operational status.  This will enable a clearer picture of fleet utilisation, and could lead to fleet reductions if vehicles aren’t being used effectively.

2.4.    The replacement of vehicle and vessel parts is essential for Retained Fleet Services to deliver the required levels of vehicle availability and ensure that vehicles stay in service for a long as planned for.  As well as ensuring the fleet remains safe and legal to operate, parts are replaced at scheduled intervals, when worn or damaged. The reuse of MPS vehicle parts for Retained Fleet Services is to be captured and reported on an annual basis. 

2.5.    This has become necessary, as a collaboration opportunity has arisen between the MPS and other Authorities including the London Ambulance Service and London Fire Brigade.  The National Association of Police Fleet Managers have also confirmed interest in a National Framework for Fleet Maintenance Workshop Supplies led by the MPS.  These Authorities have confirmed interest and are currently going through their own governance process to seek approval to initiate procurement activity.  


3.    Financial Comments

3.1.    Agency fuel is funded by respective business groups. The expected annual revenue spend for agency fuel, including a contingency for global fuel price fluctuations, is £10M per annum and £40M over the duration of the contract. 

3.2.    Vehicle data recorders including installation costs will cost £4.9M.

3.3.    The cost of the proposed extension for the provision of Vehicle Workshop Tools, Consumables & Cleaning Materials is £244,000 for a 12-month period from 1 August 2018 to 31 July 2019 and will result in the total contract value increasing to £916,876. 

3.4.    The cost of the proposed direct award for the Provision of Agency Fuel Cards is up to £5.6m for a period up to 6 months from 1 January 2019 to 30 June 2019 and will result in the total contract value increasing to £53.6M.  

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).  Public contracts for goods and services valued at £184,302 or above must be procured in accordance with MOPAC governance and the regulations.  This report confirms the value of proposed contract exceeds this threshold and, accordingly, the regulations are engaged.

4.2.    Paragraph 4.13 of the MOPAC Scheme of Delegation and Consent requires that approval is obtained from the Deputy Mayor for Policing and Crime (DMPC) for all requests to go out to tender for contracts of £500,000 or above. This paragraph further stipulates, the DMPC must approve all …variations and extension of contract with an original value of £500k or above, or where the variation or extension is greater than 10% of the original value and/or is for a period of more than 12 months. This report fulfils the reporting requirement. 


5.    Equality Comments

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

6.    Background/supporting papers

6.1.       Report
 


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