PCD 1200 Security, Mail, Porterage & Front of House Services

PCD 1200 Security, Mail, Porterage & Front of House Services

This paper seeks approval for an uplift in the contract value of £17,914,050 for the provision of various ‘front of house’ services including security, mail and porterage.  The uplift is compliant with Public Contract Regulations and will be funded from within existing MPS budgets.    

The Deputy Mayor for Policing and Crime is recommended to:   

1. Approve increasing the value of the Equans (formerly Engie) contract by total value of £17,914,050 which is 37% of the initial value of the contract to allow the contract to operate for its full base term plus the 2 additional extension years (total of 5+2 years).  The new value of the Contract for the 5+1+1 Year term will be £65,844,920 against the originally approved contract value of £47,930,870 for the 5+1+1 Year term. 

PART I - NON-CONFIDENTIAL FACTS AND ADVICE TO THE DMPC 

1. Introduction and background  

1. MOPAC approved the contract award for the supply of the security, mail, porterage, and front of house services in 2018 for an initial 5 year term, with the option to extend by two 1 year periods.  

2. This paper seeks approval for a contract value uplift to enable the extension periods to be awarded.  

2. Issues for consideration 

1. The reasons for the need to approve a contract value uplift now is due to an administrative error whereby the contract award value was understated by £13,999,125 – this is 78% of the requested contract value uplift. The MPS has assured that this has no impact on the decision to award the contract to the supplier.   

2. In addition, there has been spend on activities in excess of the expected volumes at contract award – for example, additional reactive guarding, gate failures requiring additional security, and mitigating Covid-19 impacts.   

3. Financial Comments  

1. The estimated contract value uplift required to the end of the planned seven year term is £17,914,050.  The MPS assure that this will be met from within existing budgets.  

4. Legal Comments 

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 awards of, and modifications to, public contracts for goods and/or services valued at £213,477 or above shall be procured in accordance with the Regulations. This report confirms both the value of the original contract and the proposed modification exceeds this threshold. 

2. The MPS assure that the proposed contract value uplift is within the Public Contracts Regulations 2015. 

3. Paragraph 4.13 of the MOPAC Scheme of Delegation and Consent provides that the Deputy Mayor for Policing and Crime (DMPC) has delegated authority to approve all unforeseen variations and extensions to contracts with an original value of £500,000 or 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. Commercial Issues  

1. The contract for these services was awarded in 2018 for a upto seven year term, at a value of £47,930,870.  The MPS has delegated authority to award the two 1 year extensions which it plans to do. 

2. Due to the administrative error and additional activity the contract value needs to be uplifted by £17,914,050, 37% of the original contract value.  The award of the extension will be to a performing supplier and based on the 2018 prices bid (plus inflation). The extensions will avoid the costs involved in a re-procurement and avoid exposure to potential market increases.  The MPS state that as this is in relation to an extension and value uplift the existing contract deliverables cannot be amended, however the London Anchor Institution objectives will be reviewed through contract governance meetings in order to drive improvements. 

3. The administrative error was in relation to the value of the contract award and does not affect the original decision to award the contract to the supplier.  

6. GDPR and Data Privacy  

1. MOPAC will adhere to the Data Protection Act (DPA) 2018 and ensure that any organisations who are commissioned to do work with or on behalf of MOPAC are fully compliant with the policy and understand their GDPR responsibilities.   

2. The MPS assure that there is no use of personal information in regard to staff or public within this contract, and so there are no GDPR issues. 

7. Equality Comments    

8. MOPAC is required to comply with the public sector equality duty set out in section 149(1) of the Equality Act 2010. This requires MOPAC to have due regard to the need to eliminate discrimination, advance equality of opportunity and foster good relations by reference to people with protected characteristics. The protected characteristics are: age, disability, gender reassignment, marriage and civil partnership, pregnancy and maternity, race, religion or belief, sex and sexual orientation. 

9. The MPS assure that as this paper relates to an extension period to existing contract and a request to agree a financial contract value uplift there is no equality implication in regard to this paper. 

8. Background/supporting papers 

• Appendix 1a and 1b MPS Report  - Security, Mail, Porterage, Front of House Services Purchase Order (PO) Uplift 

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