PCD 1261 Reprocure Mech Elec Gen Build Contract

Executive Summary:  

This paper seeks the approval to initiate procurement for the re-provision of Mechanical & Electrical, General Building Works & Locksmiths services.  The proposed contract term is for an initial term of four years with two optional  2-year extensions.  The estimated contract value over the potential 8 years is £339,000,000, an average of £42,449,863 p.a.  The Metropolitan Police Service will contain the spend against this contract from within its budget.  

Recommendation:  

The Deputy Mayor for Policing and Crime is recommended to:   

1. Approve to re-procure the Service line through a Call off Mini Competition under CCS Framework Agreement RM6232, at a forecast value of £339,598,905 for the full eight year term (4 years base term plus two, two-year optional extensions) at £42,449,863  per annum (this contract value figure includes an allowance for inflation of 4% over the contract period); and 

2. Approve to award the contract to the to the most economically advantageous bid, following the compliant mini competition procedure of the CCS Framework Agreement within a 10% tolerance of the values outlined in this paper to be signed off by the MPS Commercial Director. 

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

1. Introduction and background  

1. The current contracts expire on 29 April 2024.  A re-procurement is sought now to enable the tender process to be completed and leave sufficient time for the mobilisation of the successful bidder.  

2. Issues for consideration 

1. This re-procurement is for the provision of Mechanical & Electrical, General Building Works & Locksmiths services and consist of planned, statutory, reactive maintenance and small project works.  

2. The procurement will be via one lot to cover all of the MPS estate. The proposed contract term is for an initial term of four years with two optional  2-year extensions.  A single lot approach will deliver economies of scale, reduce MPS contract management activity and optimise help desk arrangements and back of house support functions.  

3. The meter reading service included in the existing contract will be removed from this re-procurement in order to enable a separate procurement which will enable greater participation of Small Medium Enterprises (SMEs).   

4. This procurement ensures that property occupied by MPS officers, staff and visitors is maintained in a compliant, secure and fully functioning way which is paramount to supporting operational requirements. 

3. Financial Comments  

1. The estimated annual contract value of  the proposed awards is £42,600,000 over the upto potential eight contract years this would be £339,000,000.  The MPS has assured that it will manage the spend against this contract from within existing planned and reactive 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 public contracts for goods and/or services valued at £213,477 or above shall be procured in accordance with the Regulations. This report confirms the value of the proposed contract exceeds this threshold.  

2. MPS Legal Services assure that the MOPAC’s route to market is compliant with the Regulations. 

3. The MOPAC Scheme of Delegation and Consent provides the Deputy Mayor for Policing and Crime (“DMPC”) has delegated authority to approve: 

• Business cases for revenue or capital expenditure of £500,000 and above (paragraph 4.8); and 

• All requests to go out to tender for contracts of £500,000 or above, or where there is a particular public interest (paragraph 4.13). 

4. Paragraph 7.23 of the Scheme provides that the Director of Strategic Procurement has consent for the approval of the award of all contracts, with the exception of those called in through the agreed call in procedure.  Paragraph 4.14 of the Scheme provides the DMPC reserves the right to call in any MPS proposal to award a contract for £500,000 or above. 

5. Commercial Issues  

1. The selection of a single lot approach and upto 8 year term follows a review of the market and industry standards.   

2. The procurement will be via a mini-competition from the Crown Commercial Services Framework - Facilities Management Marketplace Framework (RM6232).  The MPS report that the opportunity for collaboration with the GLA Group was explored but no suitable GLA frameworks were in existence, and that the nature of the functional bodies requirements and their contract timelines did not make collaboration a viable option. 

3. The mini-competition will include bidders competing based on obligations informed by the London Anchor Institution Charter and GLA Responsible Procurement objectives including compliance with statutory and social obligations of the Modern Slavery Act 2015; payable hourly rates of minimum London Living Wage; deliver local employment within the M25; measured inclusion and diversity ratios within their workforce and meet appropriate D&I thresholds; work towards achieving 80% recycling; have apprenticeship schemes in place; and bring innovations into reducing their carbon footprint whilst working towards carbon net-zero and ensuring they are moving towards and have a plan in place for a vehicle fleet consisting of ULEZ compliant vehicles. 

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, so there are no GDPR issues. 

7. Equality Comments  

1. 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. 

2. The MPS consider there to be no negative equality or diversity implications arising from this process, and that any approved suppliers will be evaluated for acceptable equality and diversity statements, as well as their ability to meet the MPS requirements under the Equality Act 2010 as suppliers to MOPAC.  

8. Background/supporting papers 

• Appendix 1 MPS Report  - Mechanical & Electrical, General Building Works & Locksmiths (MEGBW) – Re-procurement