Cleaning contract for North West London boroughs and Hendon Training Centre

Report: 14
Date: 20 February 2001
By: Commissioner

Summary

A formal competitive tender exercise for a replacement cleaning contract for a total cleaning service to all MPS buildings in the north west zone and recommendation for award of contract.

A. Recommendation

Members are asked to note the contents of this report and to consider the award of a contract in the linked exempt report.

B. Supporting information

Introduction

1. Metropolitan Police Committee (MPC) approval was sought for fresh tender action for replacement contracts for total cleaning services to all MPS buildings in April 2000. Approval was received in May 2000.

2. For the purposes of letting cleaning contracts, the MPS has been divided into north, south and central zones aligning with the 32 London boroughs. Originally our intention had been to enter into three cleaning contracts. Subsequently the north contract was judged to be too large to be effective and thus it was decided to have four contracts for central, north west and Hendon Estate, north east and south east/south west. Additional items have been included in the specification for which small contracts exist, for instance pest control, fly spraying, dog kennels, laundering of cell blankets and special requirements call-off.

3. This tender covering the north west boroughs and Hendon Training Centre when let will be for three years with the provision to extend for a further two years. The total contract value over three or five years exceeds the Commissioner's delegated authority and therefore requires approval by the MPA. In view of the Facilities Management contract let by Property Services Department (PSD) to Carillion, contract action was undertaken in the main by Carillion, with input and quality assurance cover by both PSD and the Department of Procurement and Commercial Services (DPCS).

Formal tender process

4. DPCS placed the OJEC advertisement and received 30 expressions of interest. Carillion sifted the expressions using an agreed evaluation process and the final list of selected tenderers was agreed between Carillion, PSD and DPCS. Carillion prepared the ITT documentation with input from both PSD and DPCS. The tenders were dispatched to six tenderers and offers from all six tenderers were received by DPCS. The tenders were then passed to Carillion for separate commercial and technical evaluations. Five companies were shortlisted for a presentation and interview.

5. The recommendation for award of contract to the selected company was discussed between PSD and DPCS at some length. Although the company has not previously undertaken any work for the MPS, the company showed a good understanding of the work involved (especially at the presentation stage). Their Commercial Director (who has historic knowledge of cleaning operations within the MPS estate) also made the company attractive.

Contract monitoring

6. Contract performance monitoring will be finalised during implementation discussions and is likely to take the form of regular meetings at both working and Director level; random inspections; security of relevant documentation; monthly written management reports; adoption of default points system, whether or not linked to deduction for payment and or termination of the contract in respect of the Contractor's failure to perform the services to the contract standard in any defined respect. Re-negotiation of the contract should the need arise.

7. A review of the performance of the contract will be undertaken in August 2003 to consider whether fresh contract action should be commenced or whether approval to extend for the optional further two years should be sought.

C. Financial implications

There was a 34 per cent difference in costs between the cheapest and most expensive tenders received. Acceptance of the recommendation of the award of contract to the selected company would produce a saving of 17.4 per cent of the pre-tender estimate. This estimate was based on base current costs of each price schedule element with a 5 per cent addition.

D. Background papers

None.

E. Contact details

The author of this report is Louise Roberts, Department of Procurement and Commercial Services, MPS.

For information contact:

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

Send an e-mail linking to this page

Feedback