Stage 2 of the Safer Neighbourhoods Property Programme – update

Report: 10
Date: 18 March 2010
By: Assistant Commissioner for Territorial Policing and the Director of Resources on behalf of the Commissioner

Linked to exempt item 18

Summary

Award of contracts for stage 2 of the Safer Neighbourhoods Property Programme (the ‘SN2 Programme’) was approved by Metropolitan Police Authority (the ‘MPA’) Finance Committee in December 2007. Contracts were awarded in January 2008 and work to deliver the current requirement continues.

This report seeks to update Members on the progress made in the last six months.

A. Recommendations

That Members note the content of this report on progress made on the SN2 Programme.

B. Supporting information

1. The SN2 Programme seeks to provide bases for safer neighbourhoods (‘SN’) teams throughout the 32 London Boroughs. Following a review of the current provision and future needs, the requirement as at February 2010 is to provide 112 bases in total.

2. The Finance Committee (the ‘Committee’) on 11th December 2007 approved the award of three contracts for the SN2 Programme:

• Acquisition Specialist – OGC Estates Professional Services Framework – Bruton Knowles
• Employers Agent / Cost Consultant – OGC Project Management & Full Design Team Services Framework – Drivers Jonas
• Design (Architect & Engineers), Develop & Construct Contractor – SECE Major Contractors Framework – Mansell Construction

3. The Metropolitan Police Service (‘MPS’) governance structure in place to administer the SN2 Programme roll-out is led by Territorial Policing Headquarters (‘TPHQ’), with engagement from MPA Officers, and consists of a Steering Group and a Project Board. MPS Project Board reports on a monthly basis to MPS Steering Group. The MPS Steering Group provides reports at 6 monthly intervals to the MPA Finance and Resources Committee on progress and budgetary issues. This is the third of these regular reports.

4. As at the end of February 2010, 42 bases have been completed and are in operational use; 17 bases are under construction including bases at Heathrow (Polar Park); the borough based custody and patrol base for Barking and Dagenham (Freshwharf), and the borough based custody centre for Waltham Forest (Leyton). A further 41 sites have been identified and negotiations are underway to secure these locations. Progress to date is approximately 8 weeks behind the baseline programme, this position has not altered since September 2009, with most of this delay being attributable to the delays encountered at the beginning of this stage of the programme when the substantial ‘learning curve’ / “mobilisation period” had to be addressed by the new supply chain. Progress in finalising lease agreements remains challenging due in large part to the complex requirements of the MPA/MPS as a tenant; substantial effort has been focussed on concluding a number of agreements to ensure the programme continues on track. A further 10 sites have yet to be identified.

5. DoR - Property Services and Territorial Police Property for Policing, are considering alternatives to the standard model used for safer neighbourhoods bases, to find solutions for these locations. This may include the possibility of acquiring some properties or taking them on different terms to those ordinarily considered, co-locating with other departments or functions on the borough estate, or leaving certain teams where they are currently accommodated. Further updates will be provided in due course. The team are also reviewing the effectiveness of some of the early SN base solutions to establish whether alterations can be made to existing premises, or whether alternative sites will be required in future as leases expire or break clauses become operable.

6. The SN Programme supports the ‘Presence Strand’ which seeks to enhance visibility by a greater physical presence and greater connectivity between processes and resources, engaging communities to identify issues and keeping them informed regarding progress that the MPS is making. An aspect of this is enhancing presence at the locations where most people visit. The continued delivery of SN2 Programme sites enhances Territorial Police’s ability to do this, enabling patrolling officers to take victims and witnesses to secure locations where Station Police Community Support Officers (‘SPCSOs’) or other specialist staff can support them whilst the officers return to patrol.

7. The SN programme team have recently carried out an assessment of acquisition, procurement and delivery process in terms of time, cost, and quality and together with colleagues from TPHQ Property for Policing team produced an assessment of the suitability of completed accommodation.

Table A below provides a summary of the number of projects in each key stage of delivery.

Table A

Table B below gives an indication of the average duration of each of the key stages of delivery of each base together with a current maximum and minimum figure for each stage and an indication of the variance from the generic programme.

Table B

9. An analysis of final accounts received to date indicates that construction costs are generally agreed below contract sum negating the need for significant expenditure against contingency. The total cost of constructing a base is approximately 4% above the generic budget established by the MPS in advance of the programme. This is principally due to the nature of the buildings being acquired against a generic budget which assumed a clear shell for the fit out. Costs continue to be closely managed through cost reporting and contingency allowance.

10. Table C detailed in exempt Appendix 2, details the average cost of each base type (based upon contract sums) and the degree of variation from the MPS budgets is indicated by the overall range of figures. The original building has a great influence on the overall cost of each base and this goes a long way to explaining the variations in cost in each category.

11. The successful delivery of every base is reliant on compliance to the design concept, standards of materials and quality of work. This is achieved through strong governance processes (explained within the presentation to Members in September 2009); a two stage design review; effective site monitoring, and detailed handover procedures.

12. Programme Principles and team performance is reviewed quarterly, as is contractor performance which is measured and reported to Improvement Efficiency South East. These regular quarterly reviews have enabled the development of more accurate design guides and increased the operational performance of the most recently delivered projects. Better understanding of operational requirements has enabled the inclusion of sufficient bicycle storage accommodation; suitable signage, and the improved ratio of desk spaces has led to significantly higher satisfaction at BOCU level.

13. Whilst it is considered that the majority of the outstanding requirements can be delivered by the end of March 2011 requirements that have not been identified by the end of March 2010 may be delivered through other property projects/solutions.

Environmental implications

The anticipated environmental implications are tabulated below:

C. Race and equality impact

1. Property Services promote equal opportunities, amongst diverse communities and across its supply chain and will undertake procurement in line with the MPA’s Equal Opportunities Policies.

2. Design and related issues take in to account both property related issues and locations (via the local Borough Operational Command Unit (‘BOCU’) (Territorial Police) established liaison and partnerships in place). Base design issues, in accord with standard Property Services Directorate approaches to new sites, also address requirements and achievement of best practice design in respect of accessibility and disability matters (access, signage etc.).

3. Operational matters to meet Disability Discrimination Act service needs and local requirements are also fully assessed in terms of the TPHQ set operational model and by the local BOCU as part of the overall process.

D. Financial implications

Capital:

1. A detailed analysis of the financial implications of this paper is contained in Appendix 1 (Exempt).

2. The revised Safer Neighbourhoods Property Capital budget is shown below.

3. There will be a need to transfer SN property provision for those bases that are not acquired during the currency of the programme into PSD business as usual. There will also be capital costs associated that arise where there is a need to acquire new sites where leases are not renewable or the site is no longer deemed to be suitable for current needs. Work is being undertaken to ascertain likely costs associated with this activity and to incorporate these within the seven year capital programme contained within the Business Plan. It is envisaged that relevant costs arising in 2011/12 will be met from re-phasing spend currently planned for 2010/11.

2009/10 Position:

4. The overall revenue and capital position, including DoI costs, for the financial year 2009/10 as at Period 9 is set out below:

5. The 2009/10 revenue underspend forecast has been reviewed and in closing the current year’s accounts consideration will be given to transferring resources for slippage on this programme into an earmarked reserve established for this purpose. This would be in line with current policy.

E. Legal implications

The MPA under the Local Government Act 1972 has the power to acquire a lease and the power to do anything which is calculated to facilitate, or is conducive or incidental to, the discharge of any of its functions under s111 of that Act as if it were a “local authority”.

Any contracts awarded in respect of works and services are required to be carried out in accordance with the Public Contracts Regulations 2006, and the MPA’s standing orders under Part F.

In terms of the construction works contract, Property Services have utilised the SECE Framework Agreement, which allows the MPA to enter into a contract with a supplier under the agreement without the need to complete a full tendering exercise, which has the benefit of fixed terms and conditions, particularly with regards to price. Securing suppliers from the framework agreement therefore represents best value, which the MPA is required to demonstrate under s3 of the Local Government Act 1999.

The lease agreements entered into as specified at paragraph 5 are concluded through and upon the advice of external specialist solicitors.

F. Background papers

• Property Procurement Paper – May 2007
• Safer Neighbourhoods Property Procurement Paper – July 2007
• Safer Neighbourhoods Property Procurement Paper – September 2007
• Stage 2of the Safer Neighbourhood Property Programme – Contract award – December 2007
• Stage 2 of the Safer Neighbourhood Property Programme – Update – July 2008
• Stage 2 of the Safer Neighbourhood Property Programme – Update – March 2009
• Stage 2 of the Safer Neighbourhood Property Programme – Update – September 2009

G. Contact details

Report author(s): Peter Ross, Programme Delivery Director, Property Services, MPS

For more information contact:

MPA general: 020 7202 0202
Media enquiries: 020 7202 0217/18

Abbreviations

BOCU

Borough Operational Command Unit

IESE

Improvement and Efficiency South East ]

DDA

Disability Discrimination Act(s)

MPA

Metropolitan Police Authority

MPS

Metropolitan Police Service

PSD

Property Services Department

SECE

South East Centre of Excellence

SN

Safer Neighbourhood

SPCSO

Station Police Community Support Officer

TP

Territorial Police

TPHQ

Territorial Police Headquarters

OJEU

Official Journal of European Union

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