Pegasus Programme - Next Generation - Uplift of Current Contracts

In order to manage the contractual arrangement for the Pegasus Programme the MPS will need to uplift two of the current supplier contracts. This is therefore to request an uplift of the ATOS and Keysource contracts in advance of the Final Business Case (FBC) in October.

The Deputy Mayor for Policing and Crime is recommended to:

1. Approve an uplift of the total contract value of the DCMS Tower contract with Keysource from the original current contract value of £10.2m to £15.2m. This is not a request for additional funding or budget growth. This decision is required to ensure legal compliance of the contract in line with projected delivery via the contract.

2. Approve an uplift of the total contract value of the SIAM Tower contract with ATOS from the original current contract value of £143m to £176.8m. This is not a request for additional funding or budget growth. This decision is required to ensure legal compliance of the contract in line with projected delivery via the contract.

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

1. Introduction and background

1.1. As a result of the Pegasus programme procurement and timing there is a need to extend the headroom on two of the existing contracts because these two contracts end before the Pegasus programme has selected the new supplier. This headroom will be required for service charges and projects costs.

1.2. To enable continuity of services until the new Agreements are in place and transition is complete with the new supplier, MPS is continuing the existing services through current contract mechanisms. This follows a Legal and Commercial risk assessment of options available. Considerations included timescales, risk to service and the prevailing COVID–19 situation and there is no alternative but to use the mechanisms within current contracts.

2. Issues for consideration

2.1. Service Integration And Management (SIAM)

a. Supplier: ATOS – £33.8m uplift request

i. The uplift request covers £25.4m of service charges (Core services, Tech bar, SDIM and related incentive funds) and £8.4m of catalogue related charges. The charges are for 12 months which is the maximum time we would expect this contract to run prior to the new supplier delivering the services.

ii. Current contract value of £143m is to be uplifted to £176.8m to reflect the recurring service charges and project related activity during the termination period.

2.2. Data Centre Managed Service

a. Supplier: Keysource - £5m uplift requested

b. The service charges account for £2m (Core service representing 95% of this) and project charges £3m, including TER refresh.

c. Current contract value of £10.2m is to be uplifted to £15.2m to reflect the recurring service charges and project related activity during the termination period.

3. Financial Comments

3.1. The uplifts to these two contracts reflect a total increase of £38.8m. This is continuing the existing contractual costs until the replacement of the contracts through the Pegasus programme. This cost of ongoing services is funded from within existing approved Digital Policing budgets. Any project spend against these contracts would progress through normal governance and approvals.

4. Legal Comments

4.1. The Mayor’s Officer for Policing Crime 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 £189,330 or above will be procured in accordance with the Regulations.

4.2. 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

4.3. The MPS’s ability to procure additional services is compliant with regulation 72 of the Public Contracts Regulations 2015.

4.4. Part 2 of this report details the legal considerations.

5. Commercial Issues

5.1. As an extension to an existing service this work does not change any aspects relating to responsible procurement.

6. GDPR and Data Privacy

6.1. The programme does not use personally identifiable data of members of the public, so there are no GDPR issues to be considered.

7. Equality Comments

7.1. As this is an extension of an existing service this work does not change any aspects relating to equality or diversity’.

8. Background/supporting papers

8.1. Report.