Contents
Report 8 of the 12 September 2011 meeting of the Resources and Productivity Sub-committee, sets out the summary of requests for contract action received in Procurement Services within the last quarter (April 2011-June 2011) with a particular focus on the requests that fall under the remit of Single Tender Actions (STA) and submitted via the associated form 1049.
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Requests for contract action – management information
Report: 8
Date: 12 September 2011
By: Director of Resources on behalf of the Commissioner
Summary
This report sets out the summary of requests for contract action received in Procurement Services within the last quarter (April 2011-June 2011) with a particular focus on the requests that fall under the remit of Single Tender Actions (STA) and submitted via the associated form 1049. The report provides details of compliance with EU Procurement law and the MPA Contract Regulations by providing members with information on the number of requests for STA’s against each of the legal exemption types and provides a summary of the number and value of those approved and declined. The ‘exempt’ are detailed in the exempt appendix.
A. Recommendations
That members
- Note the summary of competed tenders received in the first quarter of 2011/12 and the control of single tender exemptions through Procurement Services and the MPA; and.
- Note that further updates will continue to be provided to the Resources and Productivity Sub-Committee on a quarterly basis
B. Supporting information
1. Members have previously agreed the content and presentation format of the Contract Action - Management Information report, on a quarterly basis, to afford them the opportunity to have sight of contracting activity that is not competed but undertaken compliantly with EU Procurement law and MPA Regulations. The report (“Update on the control of Single Tender Actions”) was last presented to the Resources and Productivity Sub-Committee on 14 March 2011.
2. Requests for Contract Action - This Management Information report will continue to be presented to Members on a Quarterly basis. The next update will be issued on 5 December 2011 to the Resources and Productivity Sub-Committee.
Management Information
3. A variation to the Capgemini contract was approved by the Authority on 22 April 2010 and processed that month. This does not form part of the data in tables 1 and 2 for reporting purposes as the high value of the variation would skew the results. For further information see Appendix 1 - Exempt.
4. Table 1 - the number of requests by month for contract action (Form 1049) received since April 2010.
Table 1 - Requests for contract action (including Variations, Extensions and Single Tender Actions detailed in Tables 2 and 3)
| 2010/11 | 2011/12 | |||
|---|---|---|---|---|
| Number | Value - £m | Number | Value - £m | |
| April | 58 | (1) 46.5 | 47 | 8.5 |
| May | 54 | 27.1 | (7) 57 | (7) 27.6 |
| June | 69 | (2) 46.7 | 41 | 5.5 |
| July | (3) 47 | 33.2 | ||
| August | (3) 62 | 29.2 | ||
| September | (3) 68 | 15.9 | ||
| October | (4) 79 | (4) 30.7 | ||
| November | (4) 92 | (4) 48.7 | ||
| December | (4) 49 | (4) 19.2 | ||
| January | 76 | (5) 47.3 | ||
| February | 90 | 17.8 | ||
| March | 119 | (6) 31.4 | ||
| TOTAL | 854 | 393.7 | 145 | 41.6 |
Notes:
(1)-(2) Comments were reported in ‘Request for Contract Action - Management Information Report’ dated 13 September 2010.
(3) Comments were reported in ‘Request for Contract Action - Management Information Report’ dated 6 December 2010.
(4) Comments were reported in ‘Request for Contract Action - Management Information Report’ dated 14 March 2011.
(5)-(6) Comments were reported in ‘Request for Contract Action - Management Information Report’ dated 13 June 2011.
(7) The requests for contract action for May include 39 1049’s received by DoI with a total value of £24,945,899, of which 20 were variations or extensions with a total value of £18,427,756 and 19 were STA’s with a total value of £4,132,012. Fourteen of the STA’s were approved with a total value of £3,935,083 and 5 were declined with a total value of £194,939. The details are provided at Appendix 1 - Exempt.
5. Table 2 - the number of requests processed by month for variations or extensions to existing contracts since April 2010. These outline where a non-competitive approach has been taken by virtue of the fact that they were either a variation or an extension to an existing contract.
Table 2 - Number and Value of Variations and Extensions processed
| 2010/11 | 2011/12 | |||
|---|---|---|---|---|
| Number | Value - £m | Number | Value - £m | |
| April | 31 | 3.9 | 15 | 1.2 |
| May | 27 | 3.5 | (12) 20 | (12) 18.4 |
| June | 24 | 4.2 | 11 | 1.7 |
| July | 19 | 2.4 | ||
| August | 25 | (9) 5.3 | ||
| September | 23 | 3.2 | ||
| October | (10) 22 | (10) 19.7 | ||
| November | (10) 27 | (10) 15.1 | ||
| December | (10) 15 | (10) 1.1 | ||
| January | 23 | 3.2 | ||
| February | 28 | 4.2 | ||
| March | 28 | (11) 18.5 | ||
| TOTAL | 292 | 84.3 | 46 | 21.3 |
Notes:
(9) Comments were reported in ‘Request for Contract Action - Management Information Report’ dated 6 December 2010.
(10) Comments were reported in ‘Request for Contract Action - Management Information Report’ dated 14 March 2011.
(11) Comments were reported in ‘Request for Contraction Action - Management Information Report’ dated 13 June 2011.
(12) The high number of requests are detailed in note 7, Appendix 1 - Exempt.
6. Table 3 - the number of single tender actions requested since April 2010. These outline where a non-competitive approach has been taken by virtue of the fact that they were Single Tender Actions (STA).
Table 3 – Single Tender Actions processed
| 2010/11 | 2011/12 | |||
|---|---|---|---|---|
| Number | Value - £m | Number | Value - £m | |
| April | 15 | 0.9 | 19 | 2.4 |
| May | 21 | (13) 5.2 | 21 | (16) 4.2 |
| June | 19 | 2.6 | 18 | 0.9 |
| July | 15 | 0.7 | ||
| August | 22 | 0.9 | ||
| September | 35 | 2.2 | ||
| October | (14) 20 | (14) 1.5 | ||
| November | (14) 39 | (14) 14.9 | ||
| December | (14) 22 | (14) 1.7 | ||
| January | (15) 23 | 2.0 | ||
| February | (15) 44 | 3.4 | ||
| March | (15) 57 | 3.6 | ||
| TOTAL | 332 | 39.8 | 58 | 7.5 |
Notes:
(13) Comment was reported in ‘Request for Contract Action - Management Information Report’ dated 13 September 2010.
(14) Comment was reported in ‘Request for Contract Action - Management Information Report’ dated 14 March 2011.
(15) Comment was reported in ‘Request for Contract Action - Management Information Report’ dated 13 June 2011.
(16) The increased value of STA’s is detailed in Appendix 1 - Exempt.
9. Table 4 details the 58 requests for an exemption/exclusion to competitive tendering (single tender action) considered by Procurement Services during the reporting period. The data is broken down by both number and value against each of the exemption types claimed and indicates whether they were approved or declined.
Table 4 - Single Tender Actions processed during the quarter
| Exemption/ Exclusion Types | Number received | Value received | ||
|---|---|---|---|---|
| Approved | Declined | Approved £m | Declined £m | |
| Absence of appropriate tenders following a previously advertised procurement | 0 | 1 | 0.00 | 0.06 |
| For technical or artistic reasons, or for reasons connected with protection of exclusive rights, the services, supplier or works may be provided only by a particular provider | 21 | 17 | 1.74 | 1.88 |
| A contract following a previously advertised design contest | 3 | 5 | 3.04 | 0.18 |
| Contract classified as secret, or requires special security measures in accordance with the law, or secrecy is required for the essential interests of the security of the UK | 3 | 0 | 0.36 | 0.00 |
| Work or services similar in nature to that covered by a previous tendered contract and have now become necessary for the performance of that contract | 2 | 1 | 0.05 | 0.01 |
| A genuine unforeseeable event arose which is not attributable to the Authority and competition was impracticable where the urgency of need is such that it did not permit the full procurement process to be carried out | 1 | 0 | 0.05 | 0.00 |
| Replacement goods which can only be sourced from the same contract | 0 | 4 | 0.00 | 0.13 |
| Totals | 30 | 28 | 5.24 | 2.26 |
C. Other organisational and community implications
Equality and Diversity Impact
1. There are no specific race, equality or diversity implications arising from this report but it is notable that equality of opportunity is promoted by competitive tendering processes. This pertains especially to the support of small and medium sized enterprises (SME’s).
Consideration of Met Forward
2. By ensuring the number of tenders that follow a competitive process is maximized, follow EU Procurement law and MPA Contract Regulations, we support the delivery of the Procurement element of Met Support by improving our infrastructure, driving out waste, improving value for money and concentrating resources on fighting crime.
Financial Implications
3. The total value of all contract actions for the reporting quarter was £41.6m. The value of approved STAs during this time was £5.24m. The data demonstrates that the majority of spend has been tendered competitively or sourced through variation/extensions within existing contracts
4. The costs associated with the activities set out above are covered within existing budgets, as approved in the Medium Term Finance Plan. Individual contract actions will be approved through the normal MPS/MPA approval process and any specific savings generated through these individual contracts will be recognised in future Business Group Business Plan submissions.
Legal Implications
5. All contracts with a value over the relevant EU thresholds are required to be awarded in accordance with the Public Contracts Regulations 2006 (as amended) and advertised through OJEU unless an exemption or exclusion from the Regulations applies. EC Treaty principles and the MPA Contract Regulations must also be adhered to for all contracts, regardless of their value.
6. MPA/MPS Governance procedures require all contract award reports with a value that exceeds £1m to be submitted for scrutiny and approval to the MPS Management Board, Contracts Board and/or the MPA. DLS form part of the governance process to ensure compliance with the procurement regime and will address relevant issues within the Legal Implications of the covering report.
7. There are no direct legal implications arising from this report which is submitted as part of the Governance process and for performance monitoring.
Environmental Implications
8. Whilst there may be environmental implications when individual requests for contract actions are processed, no additional environmental implications arise at this stage of management information reporting.
Risk (including Health and Safety) Implications
9. All requests for contract actions have been dealt with in the appropriate time frame and established procedures, thus reducing the risk of non-compliance and supplier challenge to the MPA/MPS.
D. Background papers
None
E. Contact details
Report authors: Lee Tribe, Director of Procurement Services, Resources Directorate, MPS
For more information contact:
MPA general: 020 7202 0202
Media enquiries: 020 7202 0217/18
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