Initiate Procurements for Estate Management Services and Building Work

This paper is seeking approval to initiate procurement for frameworks for the supply of professional estate management services (rating, valuations, town planning, etc.) and minor and intermediate level building works upto a value of £5m. The estimated framework values are £11.3m for the 5 year estate management functions and between £150m-£250m for the 4 year building works arrangement.

That the DMPC approves the request to initiate procurement for

1. Three estate management functions – general estate management, valuations and auctions – at a combined value of £11.3m over 5 years
2. Minor and intermediate building works framework over a 4 year period at an estimated value of between £150m-£250m to be made available to other public bodies including the GLA and other police forces. The MPS estimated value of works is £153m.

Introduction and background

MOPAC currently operate a series of call off contracts for the supply of professional estate management services including rating, valuations, auctions, town planning, disposal, acquisitions and landlord/tenant services. All elements expire in March 2017 with potential to extend except for the rating element which cannot be extended

A existing framework is in place for the supply of minor and intermediate value building works. The framework is split between ‘general building works’ and ‘mechanical and electrical’. The framework was extended for its 4^th year and now expires in August 2017.

Issues for consideration

Estate Management

With the expiry of the rating element of the current arrangement the opportunity has been taken to restructure the framework across 3 lots - general estate management, valuations and auctions. This revised arrangement will support the new Property Services operating model.

Minor and Intermediate Works

This framework will allow for an increased value for contract call off, increasing from the current maximum of £2m to £5m. Learning from the existing arrangement the new framework will be structured to have 2 lots – based on values upto £500k and those between £500k and £5m – in order to increase competition, widen the range of bidders and to provide suppliers more suited to the specific projects.

Financial Comments

The estate management framework is estimated to cost £11.3m over the 5 year term. These costs will be contained within the MPS existing resources.

The building works framework will not commit MOPAC to any expenditure. Any proposed expenditure will be subject to individual business cases and the appropriate governance process.

Legal Comments

The recommendation can be lawfully approved in accordance with MOPAC Contract Regulations and EU/UK Procurement law.

In accordance with the MOPAC Scheme of Delegation and Consent (4.13), the DMPC must approve all requests to go out to tender for contracts that exceed £500,000.

Equality Comments

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