Transport services - update

Report: 14
Date: 21 November 2000
By: Commissioner

Summary

This paper details the current situation in relation to the MPS vehicle fleet, specifically in relation to the repair and maintenance contract held by Venson Public Sector Ltd and the restructuring of the MPS Transport Services Department

A. Supporting information

1. Contract with Venson Public Sector Ltd

As part of a review of support services conducted during 1996, it was decided to outsource certain functions including the service and maintenance of the MPS vehicle fleet. Following rigorous scrutiny into Value for Money and quality of service considerations, a contract was awarded to Venson Public Sector Ltd on 4 December 1998, and came into effect in April 1999

Soon after, serious dissatisfaction within the MPS about the performance of the contractor began to emerge and this prompted a number of press reports. For its part, the senior management acted upon the internal reports received from operational units. The then Commissioner and Receiver had several discussions with the directors of Vensons about the operation of the contract and the MPS served a contractual notice on Vensons to improve their performance against a structured plan.

There then followed a close monitoring of Vensons performance, and as the safety of the public and officers who drive the vehicles is paramount, a full review of the MPS response fleet (i.e. marked police vehicles that respond to emergency calls from the public) was conducted in April 2000. Following the safety review a further review of performance against the plans for improvement was undertaken and the MPS decided not to terminate the contract and the contractual notice was withdrawn.

The over-riding principle was to get the service to the MPS right, a by-product of which would an improvement in the relationship between users and Vensons. The April safety inspection highlighted necessary improvements relating to management information. A daily availability sheet is now produced, which clearly shows ‘vehicles on streets’. This enables forward planning and trends to be established.

A 14-point safety check was put in place at the Vensons workshops. Additionally, a Safety Executive was created comprising of a cross section of individuals within the MPS tasked to investigate and evaluate safety issues. The MPS Management Board and the Chief Executive from Vensons both agreed that recommendations from the Safety Committee would be implemented unless there was a cogent business or strategic reason not to.

Increased trust and partnership has been built with Vensons since June 2000. This has led the MPS to explore the possibility of more information being supplied by Vensons, leading to more meaningful and timely information, and a reduction in duplication. It will also release resources previously dedicated to Management Information within the MPS Transport Services.

The MPS Transport Services have also upgraded their computer systems, making the flow of fast time information more robust and streamlined. The introduction of the corporate finance software ‘METFIN’ within Transport Services will considerably assist with the provision of meaningful Management Information, although a review is currently underway on how the system can be further rationalised to meet the changing organisational needs.

Work is in hand, through the MPS Intranet system, to provide useful update information to users of the vehicles throughout the MPS. Consultation is currently taking place between the MPS and Vensons as to a joint database for handling complaints.

The past six months have highlighted some areas within the contract that required greater clarity. The Department of Procurement and Commercial Services (who have responsibility for the operation of the contract with Venson Public Sector Ltd) are negotiating contractual changes that are mainly linked to the definition of terms such as ‘quality’ and ‘defective vehicle’, thus increasing the understanding and relationship between both partners. A specific area of the contract that is being reconsidered relates to how work for accidents and ‘unfair wear and tear’ is both costed and paid for. This work has created significant bureaucracy within the MPS and Venson that both raises costs and impacts on vehicle availability. The proposed changes should improve the overall situation and will be the subject of a separate report in the near future.

The MPS, in conjunction with Vensons management, entered into negotiations with the main MPS vehicle suppliers to grant Vensons direct dealer status. To date Vauxhall, BMW and Peugeot have granted full warranty status, whilst Ford have granted them partial dealer status through the auspices of Ford (Dagenham). Negotiations are continuing with Honda. These new arrangements provide for major improvements in the time taken for warranty repairs and parts replacement, leading to greater vehicle availability for the MPS.

To improve the quality of workmanship, joint training for MPS technicians and Vensons’ staff is taking place, under partnership, at the MPS transport facility at Northolt, improving knowledge and expertise.

The MPS have been monitoring Vensons negotiations with Nottingham Police over a 25 year PFI contract to build a new traffic maintenance / repair facility and to take over the ownership of their fleet. These negotiations should be completed by the end of November. Whilst expansion in this country within the public sector remains a priority, Vensons are also developing their international activities within the emergency service sector.

2. Restructuring of Transport Services Department

Plans for the departmental restructuring of Transport Services Department in the MPS commenced in June 2000. The vision was one of discernible and accountable line management, with task clarity for staff. This restructuring is progressing well and all staff remaining within Transport Services were informed by the target completion date of the end of October 2000. It is anticipated that the final structure will be in place by January 2001 when those displaced staff should have been found alternative positions. The new structure comprises five business groups viz. ‘Customer Liaison’, ‘Support’, ‘Retained Services and Vehicle engineering’, ’Driver Services’ and the ‘Air Support Services’.

There has been close consultation with Staff Association Representatives and Personnel Department to ensure that this restructuring has been transparent and fair. The needs of the staff regarding a ‘swift, open and honest’ process have been recognised and realised. Jobs and processes have been clarified and streamlined. This will give individuals more ownership; enable better target setting and evaluation; and increase accountability and user confidence.

Three uniformed officers are now employed within Transport Services, for the purpose of defining and increasing user confidence. They occupy a proactive stance, and two of the officers are available to attend sites and deal direct with users. They work closely with the Transport Services vehicle engineers, and both are qualified to examine and assess vehicle-engineering issues. This has led to a decrease in the trivial or spurious complaints, and increased awareness in repetitive or ongoing problems. User confidence in the contract is also increasing as users of the vehicles can see their needs and concerns taken seriously and actioned appropriately.

3. Internal Audit

Internal audit has reviewed the processes by which the Repair and Maintenance Contract was awarded. It is clear that there are a number of lessons to be learnt and steps have already been taken to improve the procurement process. Once the full Internal Audit report is available District Audit will be asked to review and give their advice.

Internal Audit is also reviewing a number of matters related to the financial affairs of Venson Group and Venson Public Sector Ltd. This is part of an ongoing review to ensure that the MPA’s interests are properly safeguarded for such a major contract.

B. Recommendations

Members are asked to:

1. Note the report;
2. Endorse the intention by the MPS to seek alterations to the Vensons contract; and,
3. Endorse the restructuring of Transport Services.

C. Financial implications

The Transport Services restructuring will result in civil staff savings of approximately £474,760 pa, Offset by the employment of two Inspectors and one Police Sergeant within the department at a cost of £134,949, providing a net saving of £339,811

D. Review arrangements

Members may wish to review the progress of the contract and the improvements in service provided by the revised MPS Transport Services in six months time.

E. Background papers

The following is a statutory list of background papers (under the Local Government Act 1972 S.100 D) which disclose facts or matters on which the report is based and which have been relied on to a material extent in preparing this report. They are available on request to either the contact officer listed above or to the Clerk to the Police Authority at the address indicated on the agenda.

None.

F. Contact details

The author of this report is Commander Graham James - Temporary Head of Transport.

For information contact:

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

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