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Provision of South East London services and accommodation under a private finance initiative

Report: 17
Date: 20 February 2001
By: Commissioner

Summary

1. A PFI contract for the provision of new operational buildings at Bromley, Lewisham Sutton and sector bases for Deptford and Brockley is now in the final stages of negotiation. Planning consent has been secured for all sites. The proposed contract is for the Design, Build, Fund and Operation of the police stations and includes catering and a limited range of 'Police Support Services' (see Appendix C).

2. The contract forms part of the MPA Estate Strategy for the modernisation of the estate and provides an opportunity for the rationalisation of a number of old and less efficient buildings. The designs offer modern accommodation and suitable utilisation. The contract represents value for money, offers a reductions in annual costs in some areas and further efficiencies both in staff and other costs. It also potentially releases operational officers for other frontline duties. The proposed property structure offers considerable flexibility both during and at the end of the 25-year contract.

3. Since 1996, on eight separate occasions authority has been given by MPS senior management (Appendix A) to various aspects of this PFI project culminating in November 1999 with approval from both the MPS Policy Board and the MPC to negotiate with, and award a contract to, the preferred bidder now called Equion. At that time it was recognised the project would require a further £6 million (approx.) per annum and the quoted price may be subject to further adjustments.

4. This estate rationalisation will require an increase the current budget provision and the exact amount is dependent on current price negotiations and any capital receipts that the MPA is prepared to contribute to the scheme. At present an order of costs estimate for the purposes of decisions is that the proposed contract may increase current budget provision by some £9.66 million per annum at December 2000 prices. In addition the MPS will need to make a one off pension contribution of between £0.7 million and £2.0 million (maximum potential) in respect of the staff transferred.

5. The proposed PFI contract offers benefits in terms of: 3 new police stations; 2 two sector bases; accommodation rationalisation for Serious Crime Group and Mounted Branch; occupation flexibility during and at the end of the 25 year contract; disposal of 14 less efficient properties (Appendix B); value for money when compared to the public sector comparator; a reduction in annual costs for the (limited) range of police support services with an assured level of staffing together with the release of operational officers currently employed on these duties; a contract designed to motivate the PFI supplier and significant transfer of risk currently with the MPS.

6. The consequences for not proceeding are likely to result in a significant claim, an increase in capital allocation needed to replace old buildings, an immediate revenue increase for maintenance, and adversely impact on the reputation of the MPA possibly effecting future privately funded projects.

7. Authority is requested to conclude negotiations and award a contract to Equion subject to the cost increase being no greater than indicated and an audit opinion that the underlying assets will not appear on the MPS balance sheet. Authority is also sought to rescind an earlier decision to contribute £3.3 million from the sale of the MPS buildings and to use the capital receipts in other areas of the budget and not for the South East London PFI Scheme.

A. Recommendations

The MPA Finance, Planning and Best Value Committee is invited to subject to the cost increase being no greater than indicated and an audit opinion that the underlying assets will not appear on the MPS balance sheet:

  1. note the content of this paper;
  2. to note the proposal that capital receipts from the sale of the MPS buildings should be used in other areas of the budget and not for the South East London PFI Scheme;
  3. agree to negotiations continuing to reach a final contract with Equion that includes the current and limited range of Police Support Services;
  4. to sanction an increase in budget provision of £9.66 million per annum;
  5. this section contains price sensitive commercial information and is included in the Exempt paper;
  6. to authorise the granting of a 125 year leases for the sites owned by the MPA at Bromley, Lewisham, Sutton and Deptford (as part of the South East London PFI Project) to a single purpose company (Support Services South East London Limited) ultimately wholly owned by Equion plc (formerly known as Laing Hyder plc);
  7. to agree to the MPA entering into a Funders' Direct Agreement with the financiers (Dresdner Bank) providing the finance for the design and construction of the South East London PFI Project;
  8. to agree to the MPA entering into a Certificate in favour of the Project Company pursuant to the Local Government (Contracts) Act 1997 pursuant to which the Authority confirms that the transaction effected by the Contract and the Lenders' Direct Agreement is within the Authority's powers;
  9. the documentation referred to above and such other documentation as the Authority may need to enter into in connection with the said transaction be in such form as may be approved by the Commissioner or an appropriate officer on behalf of the Authority, including provisions as to corrupt practices which whilst not consistent with Regulation 14 of the Authority's Contract Regulations, are consistent with the Treasury Taskforce Guidance relating to PFI projects;
  10. to note the estimate of pensions contributions of between £0.7 million to £2.0 million and potential liability in respect of redundancies.
  11. To note:
    1. MPA costs are subject to: adjustments in respect of costs incurred in obtaining the necessary easements, party wall awards, access rights from adjoining landowners and statutory undertakers, movement of services (gas, water, electricity, sewerage), section 106 agreement at Lewisham (£303,000); and MPS direct costs relating to rates, energy and communications;
    2. monthly contract payments commence in 2003/4 (planned acceptance date) and continue for 25 years after which the current contract expires.
    3. Contract payments are subject to adjustment in respect of: market interest rates prevailing at Financial Close; benchmarking and market testing of facility management services (e.g. cleaning, catering); adjustments in respect of poor performance or unavailability; and inflation (RPI) adjustment to half of Annual Unitary Charge and a fixed escalator of 2½ per cent on the balance.

B. Supporting information

Background

2. The Estate Strategy target is for all operational buildings to have an economic life no greater than 60 years and to achieve this by 2020.

3. In 1996/7 a decision was taken by the MPS to reduce the level of capital funding for modernising the estate in order to release major additional funding for new 'IT' projects and to seek to maintain the Operational Building Strategy by using private finance through the Private Finance Initiative.

4. PFI is a lengthy and expensive procurement process. The provision of new operational buildings through PFI commenced with a project for new stations in south east London where modernisation has greatest need. Bromley, Lewisham Sutton and sector bases for Deptford and Brockley were included. Authority was first given in 1996 (Paper PB(96)60.) and culminated in November 1999 with approval from both the MPS Policy Board and the Metropolitan Police Committee to negotiate with, and award a contract to, a preferred bidder (PB(99)123 November 1999) – (see Appendix A – Approval Process). This is now in the final stages of negotiation and planning consent has been secured for all sites.

5. The proposed contract is for the Design, Build, Fund and Operation of the police stations. This includes catering and a limited range of 'Police Support Services' viz ... : custody and suspect processing (civilian gaolers); front desk or station reception officers and services associated with storage of uniforms and special equipment; prisoners property store and tape summarisers and typing (see Appendix C Police Support Services – Briefing Note). It has been agreed the police support services are to extend to those sites within the OCU territory and that this contract would act as a pilot for investigating the contracting out of such local services.

6. Throughout this process adaptations to the designs have taken place to reflect Service restructuring. It will provide 3 new police stations; 2 two sector bases; rationalisation of accommodation for Serious Crime Group and Mounted Branch; occupation flexibility during and at the end of the 25 year contract; the disposal of 14 less efficient properties and greater resilience in some support services (see Appendix B – PFI Estate Rationalisation).

Approval process

7. Since 1996 approval to the procurement process under the Private Finance Initiative has been sought and received from MPS senior management on eight occasions prior to this occasion (see Appendix A). Approval was also given to the use of £3.3 million from the sale of the MPS buildings made surplus by this PFI to reduce the cost of the annual unitary payment.

8. At the time Policy Board and the MPC last gave approval it was recognised the project would require a further £6 million (approx.) per annum from (the then) budget provision but that this may increase as a consequence of gaining planning consents and any other changes.

9. On 19 January 2001 the MPS Resource Allocation Committee and agreed despite reservations about affordability, the scheme should go ahead, subject to Management Board and the MPA Finance, Planning & Best Value Committee also being consulted. It was considered that subject to the views of the MPA, capital receipts from the sale of the MPS buildings should be used in other areas of the budget and not for the South East London PFI Scheme. It was also considered the Home Office should be approached to see if they will support the transfer of Treasury credits for the scheme in the event of the C3i/PPP being discontinued (see Appendix A for further details of this decision).

10. At the MPS Management Board Management Board Meeting on the 31 January 2001 the south east London PFI project was considered including the Budget implications 2003/4 [MB(01)3]. Management Board agreed the PFI contract for the provision of new operational buildings at Bromley, Lewisham, Sutton and sector bases for Deptford and Brockley.

Procurement process

11. In February 1998 an advertisement was placed in the European Journal and of the fourteen respondents four consortia were invited to respond to an Invitation to Negotiate (ITN) which was issued in July 1998 and included provision for bidders to offer additional non-accommodation services.

12. A scoping study had been completed into the extent of support services suitable for the PFI and once one bidder demonstrated an ability to provide additional services the results were presented to Policy Board and approval was given to accept PFI tenders that included a limited range of 'police support services' activities (see Appendix C). It was also agreed that this contract would act as a pilot for investigating the contracting out of local services across an operational area.

13. Four bids of high quality were submitted at the end of November 1998 and all included prices for the limited range of police support services. All four bidders made detailed presentations of their proposals to Senior MPS Managers in January 1999. Following evaluation, two bidders were invited to negotiate further and provide Best and Final Offers (BAFO) in response to an Invitation to Tender (ITT) that was issued in August 1999.

14. In November 1999 Policy Board gave approval to the appointment of Equion (formally called Laing Hyder) as preferred bidder for further negotiations necessary to conclude a contract. This was subsequently confirmed by the Metropolitan Police Committee that in addition also gave approval to the award of a contract subject to it representing value for money. It was recognised that the BAFO price would be adjusted in respect of any design changes necessary to achieve planning consent and any variations introduced by the MPS.

15. The original intent following the appointment of the preferred bidder was to reach a commercial close (on the two Land & Building PFI projects) by Spring 2000. This was recognised by the MPS consultants as an ambitious target and it has not been possible for Equion to achieve that timescale. It would be commercially imprudent for the MPS to have sought closure earlier whilst many contract and commercial terms had still to be agreed and planning consents obtained.

16. Equion experienced a number of delays as it took longer than anticipated obtaining property agreements and planning consents, necessitating a planning appeal for the Lewisham project. The MPS issued late variations for reconfiguring the former Area Headquarters at Sutton and Lewisham together with changes to the cells and front office area to improve prisoner safety and to meet future legislation. This and the timing of the MPS variations (June 2000) delayed the outline design development, which was not completed until late September 2000.

Current price negotiations

17. Detailed negotiations on finalising the commercial aspects of the SE London Police Station PFI have only been possible since Equion confirmed on 16 November a revised price resulting from these changes together with those necessary to secure planning consent and for construction inflation. This was described as a "not to be exceeded price" and negotiations have taken place partly to ensure it is 'fair and reasonable' but also to provide an auditable account of price increases since BAFO. The negotiations have resulted in a revised offer and reduced price from that quoted in November.

18. This paragraph contains price sensitive commercial information and is included in the exempt paper.

19. In addition the Government Actuaries Department estimate the MPS will need to make a one off pension contribution of between £0.7 million (a reasonable assumption) to £2.0 million (maximum potential) in respect of the staff transferred and may incur further liabilities for possible staff redundancies, both in respect of the MPS staff and subcontracted staff (Carillion and B&P).

Project agreement

20. It may be assumed that in many respects there is comparability between the project agreements for South East London and that for the Firearms and Public Order Training Facility which is in the final stage of agreement, having received approval from the MPA. Negotiation has commenced but has not yet reached a conclusion in respect of those items that are unique to this project i.e. the contractual provisions for the transfer of land (Property Structure), the commercial aspects, staff transfers and TUPE. There is every reason to believe that agreement can be achieved and it may be possible to resolve all remaining issues by the end of March 2001.

Property structure and surplus land

21. The proposed property structure offers considerable flexibility at the end of the contract. For each site it is proposed to grant 125 year leases to Equion on completion of the new buildings with a lease back to MPA for the project period. At the end of the project, MPA would have the option of:

  • leaving the property with Equion for the residue of the 125 year lease; or
  • taking a full value (rack) rent lease for 25 years; or
  • paying the market value of the remaining term of the 125 year lease and recovering the property or
  • requiring the lease to be assigned to a new service provider or other nominee of MPA.

22. In addition provision has been made during the 25 year contract for the MPA to be able to vacate up to 13 per cent (approximately) of the new accommodation and benefit from a reduction of the annual charge.

23. The new accommodation from this PFI project can release for disposal, one parcel of land, 9 old and less efficient properties the surrender of 4 leases and the creation of a sub-lease. The current public access to police stations will remain as it is now albeit relocated to the new police stations (see Appendix B).

24. Authority had been given for the use of £3.3 million from the receipts of disposal to reduce the annual charge of the PFI. As a result of the latest internal re-planning, the number of surplus properties has increased and receipts generated could be as much as £6.28 million, at current valuations. If these receipts were to be utilised to reduce the PFI costs , irrespective of the amount raised through the sale of property it would require a commitment from the MPS to make the contribution 3 months following occupation of the last of the new police stations.

Services

25. The services to be provided include serviced accommodation; catering; maintenance; cleaning and a range of 'Police Support Services' (see Appendix C).

26. The inclusion of a range of police support services within the South East London PFI project (formally called the 4 Area Accommodation & Services Project) arose out of a scoping study into the extent of services that could be included within the PFI. The need to undertake this study was to define the extent to which bidders would be given the opportunity to be innovative over the methods by which services are delivered. Innovation is considered to be an important part of the PFI process and where the Public Sector can gain value for money.

27. In conjunction with the local commanders a study of "Non-Accommodation Services in Police Stations on (the then) Metropolitan Police 4 Area" was undertaken by the MPS PFI team which included involving PA Consulting to augment in-house resources. The process included full consultation with all portfolio Assistant Commissioners, the then 4 Area Assistant Commissioner, as well as 4 Area OCU Commanders and their senior management teams.

28. The study identified that twenty-three activities are undertaken within a police station and each was examined against a set of criteria that had been agreed with senior operational officers. Only three activities were considered suitable for outsourcing i.e. (1) Custody and suspect processing (civilian gaolers); (2) Front desk or station reception officers; (3) Selected support services – storage of uniforms and special equipment; prisoners property store together with general administration. The general administration function was examined further and Area staff agreed this would extend only to tape summarisers and typing.

29. Following subsequent consultation by senior operational officers and a paper to Policy Co-ordination Committee, the Commissioner endorsed the proposal with station reception officers and administration services being limited to those sites within an OCU. This had the effect of broadening the scope of the PFI to other MPS buildings but only for these limited police support services and only within the Operational Command Unit (OCU) commands of Bromley, Lewisham and Sutton.

30. At the time of the BAFO offer (September 1999) it appeared for this aspect alone a PFI contract was likely to deliver cash savings which equated to a 10 per cent reduction in the then service delivery cost. This excludes any other efficiencies - such as releasing operational officers from these duties - and the value of risks assumed by the PFI supplier).

31. The PFI supplier will be responsible for staffing to meet demand with delivery assessed against a performance requirement, which if not satisfied will result in penalties in the form of financial deductions.

32. In the event that the MPS has to maintain the service by supplying staff the PFI supplier has agreed to reimburse the MPS costs.

33. Potentially this arrangement will result in releasing operational officers from undertaking these duties when there is a shortfall in the availability of civilian staff.

34. A paper prepared for internal briefing and setting out the background, benefits, consultations in more detail is attached at Appendix C.

Business case

35. On 20 November 1997 the MPS Outline Business Case (OBC) was forwarded to the Home Office (HO) with a request that they be passed to the Treasury Task Force 'Project Review Group' for endorsement. This was to comply with the rules for additional funding for the revenue costs associated with borrowing through the Revenue Support Grant Scheme operated under 'The Local Authorities (Capital Finance) Regulations' (see. Section D). A revised OBC was subsequently completed at the request of the HO, reinforcing the case for continuing with the PFI and returned on 30th March 1998. No response has been received and this has not been pursued further as a consequence of the MPS decision not to seek support for the revenue costs. As a consequence of the decision by the MPS Resource Allocation Committee the Home Office is to be approached to see if they will support the transfer of Treasury credits for the scheme in the event of the C31/PPP being discontinued.

36. It is not possible to finalise a review of efficiencies or complete a Final Business Case until approval to the current contract structure is confirmed, a price has been finally agreed and contract negotiations concluded.

Risk transfer

37. An assessment of the significant risks associated with the PFI option has been made, as has an evaluation of where these risks would be most effectively and economically allocated.

38. The level of risk transferred from the MPS in this way forms part of the economic case for adopting the PFI. There are significant opportunities for risk transfer to the PFI provider during the course of the project, including those associated with: financing; obtaining planning approvals; design construction costs; availability of support services; security; performance inflation, environmental considerations; third party income; legislative changes and maintenance.

39. Whilst the test of risk transfer can only be fully applied following final contract negotiations, it is important to note that the extent of risk transferred to the PFI provider for this project indicates a significant benefit to the MPS in pursuing a PFI option.

Consultation

40. Staff affected by this proposal have been kept informed and received presentations from bidders.

41. The Trades Union Side (TUS) have been consulted on a regular basis, received presentations from bidders; participated in round table discussions concerning the proposals and have been involved in the BAFO evaluation process.

42. Operational officers have agreed the criteria and been consulted during the scoping study; agreed the contract specification; received presentations from bidders; had round table discussions concerning their proposals and been involved in the evaluation of the BAFO offers that led to the appointment of preferred bidder.

43. The personnel managers of the effected staff have been kept informed of proposals through the (then) Area Management team and 'P' Department representatives have attended the TUS meetings specifically convened for this project and the bidder presentations to staff in July 1999.

44. Consultations with the public have been at a local level by means of operational officers meetings; the planning approval process; and through MPS senior managers meetings with MP's, councillors etc.

Procurement implication of terminating or adjusting the contract

45. MPS has discretion to either: terminate the contract negotiations with the preferred bidder on the basis that the price offered is not "affordable" or, to adjust the contract by the removal of part of all of a service i.e. the police support services, because of an organisational decision not to "out-source" that service or to help with the affordability issue or for another bona fide reason.

46. The termination of contract negotiations or to adjust the scope of the service provision both have procurement implications under the EU procurement regulations and potentially under English common law.

47. Our legal advisers are currently instructed to provide a report on these procurement issues, but their preliminary views based on their investigation into the records thus far is as follows.

48. Should MPS terminate the contract negotiations they believe that the preferred bidder, Equion would submit a claim for wasted tender costs. That claim could be very significant and potentially could run into several million pounds. The procurement regulations allow the contracting authority to withdraw from negotiations when it becomes apparent that the contract is not "affordable" but Equion could well allege that this unaffordability has been in existence for some time but nevertheless MPS have, by ordering variations, supporting their planning appeal and applications and has generally induced them to expend further tender costs.

49. The removal of the whole of police support services from the contract would be a significant change which is likely to require MPS to have to ask the preferred bidder Equion, and the reserve bidder, Babcock & Brown, to re-bid the contract. The removal of part of the police support services, such as the station reception officers, is not so clear in procurement terms. Further details are included at section G of Appendix C of this report. The MPS may again face claims from the bidders for wasted tender costs. They are likely to be significant claims, and potentially from both Equion and Babcock & Brown.

50. The impact upon the credibility of MPS with regard to future projects would need to be assessed also.

51. In addition the MPS would need to set aside capital to replace the current Police Stations at Bromley (circa. 1910), Lewisham (circa. 1899), Sutton (circa. 1908). In the meantime all 14 buildings that form part of this rationalisation would need to be retained. The maintenance backlog on these buildings has developed pending completion of the PFI. The associated cost has yet to be fully developed but early indications are that this could amount to in excess of £5 million to recover their condition.

52. An alternative accommodation strategy for south east London would be necessary as many of the existing buildings are in very poor condition; the Serious Crime Group is dispersed over a number of buildings without adequate evidence storage facilities; the location mounted branch will not satisfy the current strategy.

Conclusion

53. The proposed PFI contract offers the following benefits:

  • accommodation: three new police stations and two sector bases, accommodation rationalisation for Serious Crime Group and Mounted Branch; considerable flexibility of occupation both during and at the end of the 25 year contract and disposal of one parcel of land, 9 less efficient properties, the surrender of 4 leases and the creation of a sub-lease;
  • costs: value for money when compared to traditional procurement; a potential reduction in annual costs for a (limited) range of police support services and significant opportunities for risk transfer risk;
  • services: an assured level of staffing for the police support services; the release of operational officers currently employed in support of the 'police support services' and a contract specifically designed to motivate the PFI supplier generating appropriate behaviours by means of payment and performance measures.

C. Financial implications

Note: In order to illustrate the comparison between the amounts last approved at the BAFO stage unless otherwise stated all amounts in the section are based at April 1999 and use the 5.76 per cent interest rates prevailing at the BAFO stage. It should be noted that the price provided by Equion on 8 February 2001 was to be supported by a financial model and therefore it has not been possible to scrutinise the price in any detail.

Price

54. Paragraphs 54 to 66 contain price sensitive and commercial information which are contained in the exempt paper.

Additional funding by credit approval

67. The MPS sought additional funding for the revenue costs associated with borrowing through the Revenue Support Grant Scheme operated under The Local Authorities (Capital Finance) Regulations. Following discussions with the Home Office (HO) it was concluded that the MPS could not expect to obtain additional financial support for more than one of its major PFI projects (two or more would pre-empt most of the budget available to the HO). As a consequence, it was decided to seek additional support only for the C3i project.

68. The MPS Resource Allocation Committee at the meeting on the 19th January 2001 decided if the C3i project is no longer to be procured as a PFI project the agreement of the Home Office should be sought to the diversion the support grant from C3i to this project. This would result in a reduction to increased demand on the budget allocation and the amount of this reduction will depend on any agreement with the Home Office with particular regard to the capital element of the respective projects.

Accounting treatment

69. A risk analysis has been completed on the basis of an assessment of the level of risk and risk transfer within the project. In addition, an analysis of risk was undertaken using the Treasury Task Force Guidance issued in 1999 to establish whether the project should appear on the MPS Balance Sheet. On the basis of current guidance the analysis concludes that the value of the PFI should not appear on the MPS Balance Sheet.

70. The official opinion of external auditors will be required. On completion of negotiations this will be sought from the MPS Auditors (KPMG), on behalf of the Audit Commission.

Audit opinion

71. The acceptability of the business case rests on the well-founded assumption that the MPS will be able to account for the project as a revenue item. The final disposition of this issue depends on the auditors signing an audit opinion to endorse this. The auditors will not commit to an opinion in advance but they are already aware of the circumstances of the project. It is recommended that a written confirmation now be sought from the MPS auditors if the contract is approved.

Review arrangements

72. Further costs to be incurred in respect of costs incurred in obtaining the necessary easements, party wall awards, access rights from adjoining landowners and statutory undertakers, movement of services (gas, water, electricity, sewerage) and section 106 agreement at Lewisham (£303,000) will be reported the MPS Resource and Allocation Committee. Any change to the projected project cost or programme prior to financial close will also be reported as well as an annual review of contract performance.

F. Contact details

The author of this report is T G Lawrence, Property Services Department.
For further information of background papers contact F Allum - 020 7230 8318.

For information contact:

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

Appendix A: Approval process

1. The Receiver informed the Policy Board of proposals to explore the provision of fully serviced accommodation for new police stations at Bromley, Sutton and Lewisham (24th July 1996 Paper PB(96)60).

2. The Director of Property Services informed the Strategic Co-ordination Forum of the progress of the OBC (Paper SCF(97)50) and received approval to commence the formal procurement process at the meeting held 7 November 1997. It was also noted that a review of the opportunities for achieving efficiency savings would continue throughout the process, with a full Business Case being prepared following receipt of tenders.

3. The MPC PFI Sub-Committee gave the Receiver approval to proceed at the meeting held on 24 November 1997.

4. Following a detailed evaluation of the responses to an advertisement in the European Journal in February 1998 the Director of Property Services informed the Review Steering Group (RSG) of the recommended shortlist (6th June 1998 Paper SSRT/SG (98)18) and received approval to invite four bidders to respond to our Invitation to Negotiate (ITN).

5. The results of the scoping study into the extent of police support services that could be included within the PFI were presented to Policy Board and approval was sought to accept PFI tenders that included the above services and to agree to the (then) 4 Area PFI acting as a pilot for investigating the contracting out of local services across an operational area. Policy board agreed to the principle and subsequently, following consultation by senior operational officers and a paper to Policy Co-ordination, consented to the station reception officers and administration services being extended to those sites within an OCU command. An addendum was issued to the ITN accordingly.

6. Good bids of high quality were submitted at the end of November 1998. All included prices for the police support services. Maximum prices were submitted and bidders made detailed presentations of their proposals to Senior MPS Managers in January of this year. Following a detailed evaluation of the responses the Director of Property Services informed the RSG of the evaluation of ITN (3rd March 1999 Paper SSRT/SG(99)14) and received approval to invite two bidders to negotiate further and provide Best and Final Offers (BAFO) in response to an Invitation to Tender (ITT). The MPC were informed by a letter from the Director of Property Services dated 18th March 1999.

7. SSRT were also informed (3rd March 1999 Paper SSRT/SG(99)14) that the PFI project included a new Area HQ for 4 Area, anticipated at Bromley but the changes brought about by the proposed realignment of MPS Areas resulted in a request to amalgamate HQ's for 4 and 5 Areas. The location of both Bromley and Lewisham was considered unsuitable for such a facility

8. Subsequently a combined Business Case and Investment Appraisal examining options for alternative locations was presented to the Strategic Co-ordination Forum (19th May 1999 Paper SCF(99)27) and approval was given to locating a new South London Area Headquarters at Sutton on a site already owned by the Receiver and its provision through the 4 Area Accommodation PFI Project.

9. Two bidders, Babcock & Brown and Equion, submitted detailed Best and Final Offers in response to an ITT issued on the 13 August 1999.

10. In November 1999 following evaluation of the BAFO bids Policy Board gave approval to negotiations continuing with and the appointment of Laing Hyder (now called Equion) as preferred bidder. This was subsequently confirmed by the Metropolitan Police Committee who in addition gave approval to the award of a contract subject to it representing value for money.

11. On the 13 December 2000 a paper was presented to the MPS Resource Allocation Committee providing an update on the current position.

12. On the 19 January 2001 the MPS Resource Allocation Committee and decided:

  • subject to the views of the MPA, capital receipts from the sale of the MPS buildings should be used in other areas of the budget and not for the South East London PFI Scheme;
  • any budget gaps caused by the shortfall in capital receipts will need to be taken into account by the medium term forecast, which may include introducing cuts in order to balance the budget;
  • despite reservations about affordability, members agreed the scheme should go ahead, subject to Management Board and the MPA(FPBV) also being consulted;
  • the Home Office should be approached to see if they will support the transfer of Treasury credits for the scheme in the event of the C3i/PPP being discontinued;
  • a workshop should be convened as soon as possible so that MPA members can consider the implications of the PFI scheme in more detail;
  • discussions concerning membership of the workshop will take place at the MPA members can consider the implications of the PFI scheme in more detail;
  • discussions at the workshop should remain confidential as the matter is 'commercial in confidence';
  • the workshop will also need to consider the financial consequences of changing the mix of MPS buildings in the current scheme to something different and outsourcing only 40 of the 86 staff involved.

13. At the MPS Management Board Management Board Meeting on the 31 January 2001 the south east London PFI project was considered including the Budget implications 2003/4 [MB(01)3]. Management Board agreed the PFI contract for the provision of new operational buildings at Bromley, Lewisham, Sutton and sector bases for Deptford and Brockley.

Appendix B: Review of properties

The review of the current disposition of the estate in South East London supports the following key elements of the business case for the South East London Project:

  • relocation of former divisional police stations and serious crime group resources in purpose built accommodation, to be provided on existing and ideally suited MPS sites - upgrade from MPS Estate Strategy Stock Inventory category C and D to category A (first class);
  • centralisation of borough charging and custody activities in bespoke facilities to realise operational and administrative efficiencies;
  • rationalisation of the serious crime group resources, by relocation to purpose built central accommodation. Currently serious crime group is dispersed and relocation will provide operational and accommodation efficiencies;
  • disposal, for fair economic consideration, of the freehold accommodation that can be vacated as a result of the proposed rationalisation.

In general, the properties to be disposed of demonstrate a combination of the following characteristics:

  • age and beyond a reasonable economic life;
  • overcrowded and / or restricted for further development by Grade listings (1 or 2) and / or Local Authority consultation;
  • internally categorised as low grade and unfit for purpose (stock inventory category C & D);
  • are held under lease arrangements that can be terminated.

Properties within the Borough OCUs' and others affected by this PFI project:

1. Lewisham

Lewisham Divisional Police Station

Built circa. 1899, this building provides general police station facilities, including charging and custody facilities and front desk access to the public. The stock inventory category is C and there is also a grade 2 listing (the building is located in a conservation area).

The proposal is to relocate these functions to the new Lewisham borough operational command unit - BOCU - and leave the property available for disposal.

East Dulwich (Southwark Borough)

The police station, which was built in 1977, it has public access and will remain operational. The building is recorded in the stock inventory as category B.

Elements of the serious crime group currently occupy one floor at the premises and will relocate to the new Lewisham Serious Crime Group facility under the integration of the group. The stables will also relocate to Lewisham. Other units from the Borough will occupy vacated accommodation.

Old East Dulwich (Southwark Borough)

Support services at a further property, referred to as "Old" East Dulwich, will be transferred to the new Lewisham BOCU, vacating the property for disposal. Currently, there is no public access to this property

Eltham Sub-divisional Police Station (Greenwich Borough)

Built circa. 1939, this building provides general police station facilities with some accommodation occupied by elements of the serious crime group which will relocate to the new Lewisham Serious Crime Group facility under the integration of the group. The public has no access to front desk services and there is no charging or custody facilities. The building is registered in the stock inventory as category C and also has a Grade 2 listing.

This will continue operating as a sector base with the Borough Commander and (the newly created) Cluster Commander occupying the space vacated.

Sydenham Sector Base

This is registered in the stock inventory as category B. This sector base has front desk access to the public and this will continue in use.

Deptford Sector Base

Built circa 1912, this was used as a sector base, and includes facilities for charging and custody, although these are no longer used. The public have access to front desk services. It is registered in the stock inventory as category D.

The current PFI requirement is for a sector base with public access to front desk services, with centralized charging and custody at the new Lewisham BOCU.

The PFI suppliers proposal is to transfer sector base activities to a new, purpose built sector base on land at the same site, and to dispose of the old building.

Brockley Sector Base

Built circa 1883, this served as a sector base and currently provides no public access to front desk services. It is recorded in the stock inventory as category D.

The proposal is to relocate all activity to the new Lewisham BOCU and the new Deptford sector base, leaving the property vacant and available for disposal.

Shooters Hill (Greenwich Borough)

Formerly a combined police and fire station, this property currently accommodates elements of the serious crime group. There is no public access to front desk services .

The proposal is to relocate to the new Lewisham serious crime group facility and to dispose of the property. (It is understood that a case to retain Shooters Hill will for part of another Business Case)

Catford Police Station

This is an operational police station with public access to front desk services . The building also accommodates 2 sector bases and is recorded in the stock inventory as category B.

This facility will continue to operate as sector bases and the custody suite will be closed, but maintained as a reserve for the borough in the case of over-spill or non-availability at the new Lewisham police station. The child protection teams from Nightingale Grove will also be transferred here.

Catford Hill

This former police station currently only accommodates elements of the serious crime group. There is no public access to front desk services.

The proposal is to relocate to the new Lewisham Serious Crime Group facility and to dispose of the property.

Marlowe House – (Bexley Borough)

This is leasehold accommodation and is part of a lease for 3 floors of the building. One floor provides accommodation for elements of the serious crime group and there is no public access to front desk services.

Relocation to the new Lewisham serious crime group facility follows from the strategy to consolidate this activity. The lease can not be cancelled, but the MPS will seek to sub-let the 5th floor and as a consequence savings may accrue.

Lee Road

This former police station is already on the MPS disposal list and does not from part of the PFI project. It is recorded in the stock inventory as category D.

It currently accommodates the Territorial Support Group, which is to be relocated with the South East Traffic Unit - SEATU - at Catford. There is no public access to front desk services.

Nightingale Grove

This is a leasehold building (lease expires 2003), accommodating child protection teams and has been retained whilst the PFI is developed. Occupants will be transferred to Catford police station and the lease given up. As a consequence savings will accrue to the MPS.

Willow Tree House

This is a former married quarters, is freehold and has no public access to front desk services. It is currently occupied by a Child Protection team and the video room facilities will remain in use.

2. Bromley

Bromley Divisional Police Station

Built circa 1910, this building provides general police station facilities, including charging and custody facilities and public access to front desk services . The stock inventory is category is C and there is also a grade 2 listing.

The property is crowded and 3 adjoining shop premises in Widmore Road were purchased in 1984 to take over-spill. Portakabin accommodation is also used within the main building yard.

This site has been developed to full capacity and presents significant, if not insurmountable, problems in respect of complying with recent legislation regarding access for disabled staff and visitors.

Old Area HQ accommodation was dispersed across this Division prior to the move to borough policing the original PFI proposal at that time was to relocate the divisional station and area accommodation at the new site. During the procurement process this changed and the area accommodation was moved to Sutton. The centralisation of HQ activities under the borough-policing format removes the requirement for area accommodation in the current business case. As a consequence the accommodation was re-planned with the Serious Crime group being centralised at both Lewisham and Sutton.

Accordingly on completion of the new Bromley Police Station, both the old station together with those in Widmore Road are available for disposal.

Orpington Sector Base

Built in 1982 as a sub-divisional police station, this includes charging and custody facilities and public access to front desk services . It is recorded as stock inventory category A.

The charging and custody facilities will be closed, but held as an emergency reserve for the main active facility at Bromley police station. Other operations will continue without change as the building is ideally suited for purpose and provides required sector base cover.

Penge Sector Base

Built circa 1872, this has been used as a sector base and has public access to front desk services . It is recorded as stock inventory category D.

This facility will continue as-is under the current proposals despite its category D status, due to the requirement for sector base cover.

Beckenham Sector Base

Built circa 1885, this is recorded as stock inventory category C, and there is public access to front desk services . This property is to continue in use to provide sector base cover.

St Mary's Cray Sector Base

Located in converted bank premises, built in 1970 and acquired in 1996. There is no public access to front desk services.

This property is recorded as stock inventory category B and will continue in use under the current proposals.

West Wickham Police Office

This is a leased shop unit, which has part time public access to front desk services .

This property is recorded as stock inventory category B and will continue in use under the current proposals.

Biggin Hill Police Office

This is a police office with no public access to front desk services , and will continue in use.

Ambassador House (Croydon Borough)

This is leased accommodation currently housing child protection teams for Lambeth and Croydon and Central Training. The lease has an appropriate break clause, which will enable the MPS to vacate the premises and take cost savings.

The Croydon team may relocate to the Wallington sector base and an appropriate location for the Lambeth team is being reviewed. Central Training staff and operations will relocate to Grosvenor House, Wallington.

There is no public access to front desk services.

Egerton Lodge

This is leased accommodation for support activities and is currently occupied by Occupational Health. This is likely to remain in use and as a consequence no saving will accrue to the MPS.

There is no public access to front desk services at this property.

3. Sutton

Sutton Sub Divisional Police Station

This was built circa 1908 and provides general police station facilities, including charging and custody and front office. The building is recorded as stock inventory category C in the stock inventory and is also Grade 2 listed.

The MPS owns land adjacent to this building where the new Sutton development will be carried out. Current activities will transfer to the new accommodation and this building will then be refurbished as part of the overall development of the site, to house the consolidated serious crime group.

Some of the land on the adjacent sites is not required for the development and will be disposed of.

Sutton Gate

This is a leasehold property used to accommodate staff relocated from Epsom and Banstead when these were transferred to Surrey Constabulary. There is no public access to front office services.

The lease will be given up and staff transferred to the new Sutton PFI Police Station.

Wallington Sector Base

Built circa 1915 this building has part time public access to front desk services. It is recorded as stock inventory category C.

This unit will continue in use.

Worcester Park Sector Base

This is a freehold shop unit with civilian tenants above. The unit has part time public access to front desk services , it is recorded as stock inventory category B and will continue in use.

Earlsfield (Wimbledon Borough)

This freehold property was originally a sub divisional police station and currently accommodates elements of the Serious Crime group. There is no public access to front office services.

Activities will be transferred to the new Sutton Serious crime Group building and the property will be disposed of.

County House

This is a leasehold property (lease expires 2002) and has been leased for temporary accommodation, whilst the PFI is developed. It is occupied by elements of the Serious Crime group. There is no public access to front desk services.

Activities will be transferred to either Sutton or elsewhere and the lease given up. As a consequence, savings will accrue to the MPS.

Parchmore Road, Thornton Heath (Croydon Borough)

This is a freehold property occupied by the territorial support group and has no public access to front desk services. Activities will be transferred to the South East Area Traffic Unit at premises in Aitken Road and the property will be disposed of.

However, this disposal is linked to a separate investment appraisal and the proceeds and savings are not attributed to this PFI business case.

3 & 5 Penryhn Road (Kingston Borough)

These are two freehold properties which are physically linked. They are currently principally occupied by the Press Bureau, Performance and Review Department and CIB. There is no public access to front desk services.

The serious crime group resources will move to the new Sutton building and the remaining activities will be transferred to a property in Nightingale Lane, which itself will be vacated by transfers to new Sutton. The property will then be disposed of.

Appendix C: Provision of police support services under the Private Finance Initiative project for South East London

Police Support Services - briefing note
By: The Director Property Services

A. Summary

1. Since 1998 the MPS has been pursuing the provision of new operational buildings at Bromley, Lewisham and Sutton by means of the Private Finance Initiative (PFI). In addition to the Design, Build, Fund and Operation, which includes catering, it is proposed the successful PFI supplier is responsible for the supply of staff and delivery of services associated with Custody and suspect processing (civilian gaolers); front desk or station reception officers; and selected support services, including the storage of uniforms and special equipment, the prisoners property store and typists and tape summarisers.

2. It has been agreed by the MPS and MPC that this arrangement would be a pilot for investigating the contracting out of local services.

3. The inclusion of a range of 'Police Support Services' arose out of a scoping study into the extent of services that could be included within this PFI. The study included full consultation with all portfolio Assistant Commissioners, the then 4 Area Assistant Commissioner, as well as 4 Area OCU Commanders and their senior management teams.

4. At the time of the BAFO offer (September 1999) it appeared for this aspect alone a PFI contract was likely to deliver cash savings which equated to a 10 per cent reduction in the then service delivery cost. This excludes any other efficiencies - such as releasing operational officers from these duties - and the value of any risks assumed by the PFI supplier).

5. The PFI supplier will be responsible for staffing to meet demand with delivery assessed against a performance requirement, which if not satisfied will result in penalties.

6. In the event that the MPS has to maintain the service by supplying staff the PFI supplier has agreed to reimburse the MPS costs.

7. Staff affected by this proposal have been kept informed and received presentations from bidders.

8. The Trades Union Side (TUS) have been consulted on a regular basis, received presentations from bidders and participated in round table discussions concerning the proposals as well as being involved in the BAFO evaluation process.

9. Operational officers have agreed the criteria and been consulted during the scoping study; agreed the contract specification; received presentations from bidders; had round table discussions concerning their proposals and been involved in the evaluation of the Best and Final Offers (BAFO) that led to the appointment of or preferred bidder.

10. 'P' Department representatives have attended the TUS meetings specifically convened for this project; and the bidder presentations to staff in July 1999.

11. Any proposal to omit the police support services element from the contract, now in the final stages of negotiation is likely to set back the procurement process. This will delay the programme and may result in a more expensive project. The position is not so clear if only part of the police support services are deleted. There is the likelihood of claims for wasted costs from both the preferred the reserve bidders although the extent of these claims are difficult to assess at this time. Claims from the rejected bidders is unlikely, as is the need to go back to ITN stage.

12. There is a consensus from those who have considered the bidder's submission, that a workable solution can be achieved.

B. Background

13. At a recent South East London Project Board meeting, concerns were expressed by a member of the Metropolitan Police Authority (MPA) over the principle of any further MPS staff being transferred along with the implications on the future resilience of the service.

14. This paper describes the limited range of police support service currently delivered principally by civilian staff employed by the MPA, which it is proposed to include within a contract and the background, benefits, consultations and implications of not pursuing the current proposals.

15. Other facilities management services, such as building maintenance and cleaning will involve a second stage TUPE transfer of some employees with Building and Property Limited.

C. Scoping study

16. The inclusion of a range of 'Police Support Services' within the South East London PFI project (formerly called the 4 Area Accommodation & Services Project) arose out of a scoping study into the extent of services that could be included within the PFI. The need to undertake this study was to define the extent to which bidders would be given the opportunity to be innovative over the methods by which services are delivered. Innovation is considered to be an important part of the PFI process and where the Public Sector can gain value for money.

17. In conjunction with the local commanders a study of "Non-Accommodation Services in Police Stations on (the then) Metropolitan Police 4 Area" was undertaken by the MPS PFI team, principally involving PA Consulting, due to a lack of in-house resource.

18. The study included full consultation with all portfolio Assistant Commissioners, the then 4 Area Assistant Commissioner, as well as 4 Area OCU Commanders and their senior management teams.

19. The study identified that twenty-three activities are undertaken within a police station and each was examined against a set of criteria that had been agreed with senior operational officers i.e:

  • Activities: Senior Management, Business Plan Maintenance, Crime Prevention, Crime Management, Personnel Management, Training, Kennelling, Special Equipment, Station Reception, Storage of Uniforms and Protection Clothing, prisoners property store, General Administration, Licensing, Youth and Community, Prosecution File Preparation, Intelligence, Patrol, Identification of Suspects, Suspect Interviewing, Witness Interviewing, Crime Investigation, Custody, Suspect Processing
  • Criteria: Cost or cost saving, Distinct unit, Risk, Requires police powers, Acceptability, Commercial attractiveness, Legislation e.g. crime & disorder, Public perception/impact on the community, Significance of change, Impact on service standards, Activity linked to other key MPS activities, Linkages with other criminal justice agencies

20. Only three activities were considered suitable for outsourcing i.e:

  • custody and suspect processing (civilian gaolers);
  • front desk or station reception officers;
  • selected support services – storage of uniforms and special equipment; prisoners property store and general administration;

21. The general administration function was examined further and Area staff agreed this would extend only to tape summarisers and typing

22. Once bidders had both expressed an interest and demonstrated an ability to provide additional services, authority was sought and Policy Board gave approval to accept PFI tenders that included the above services. It was also agreed that (the then) 4 Area would act as a pilot for investigating the contracting out of local services across an operational area.

23. Following subsequent consultation by senior operational officers and a paper to Policy Co-ordination Committee, the Commissioner endorsed the proposal with station reception officers and administration services being limited to those sites within an OCU. This had the effect of broadening the scope of the PFI to other MPS buildings but only for these limited police support services and only within the OCU commands of Bromley, Lewisham and Sutton.

D. The PFI tender process

24. In November 1997 approval was given to pursue the PFI process for the provision of fully serviced accommodation for new police stations at Bromley, Sutton and Lewisham and an advertisement was placed in the European Journal in February 1998. Of the fourteen respondents four consortia were invited to respond to an Invitation to Negotiate (ITN). Documents were issued in July 1998 and included provision for bidders to offer additional non-accommodation services. As a consequence of one bidder demonstrating an ability to provide additional services the results of the scoping study were presented to Policy Board and approval was given to accept PFI tenders that included the three police support services activities. Four bids of high quality were submitted at the end of November 1998 and all included prices for the police support services. All four bidders made detailed presentations of their proposals to Senior MPS Managers in January 1999. Following evaluation two bidders were invited to negotiate further and provide Best and Final Offers (BAFO) in response to an Invitation to Tender (ITT) that was issued in August 1999. In November 1999 Policy Board gave approval to the appointment of Laing Hyder (now called Equion) as preferred bidder and the further negotiations necessary to conclude a contract.

E. Benefits of a PFI contract

25. Negotiations have now reached an advanced stage. Based on the BAFO offer a PFI contract is likely to deliver cash savings which may amount to a 10 per cent reduction in the current service delivery cost. This excludes any other efficiencies - such as releasing operational officers from these duties - and the value of risks assumed by the PFI supplier).

26. The current proposal is that the PFI supplier will be responsible for staffing to meet demand and to deliver services against a 'user requirement' (specification) that has been agreed by area and operational officers. Delivery will be assessed against a performance requirement, which if not satisfied will result in penalties that could result in the withholding of money.

27. Also, should the PFI staff fail to report for duty on any occasion, the MPS can maintain the level of service by supplying staff and the PFI supplier will reimburse the MPS costs in accordance with the prevailing 'Ready Reckoner' scale of charges.

28. As a consequence it is considered that the cost and staffing risk associated with satisfactory delivery passes to the PFI supplier although it is recognised that the publicity associated with any deficiencies will, of course remain with the MPS.

F. Consultation

Staff

29. The Area Management team has been responsible for informing civilian staff of progress. In February 1999 letters were written to all staff potentially affected setting out the scope of the project and the potential implications for staff. In November 1999 a further letter was sent informing staff of the appointment of the preferred bidder. In each case a draft was seen by the TUS and approved before it was sent.

30. In July 1999 as part of the ITT response the two shortlisted bidders were required to make a presentation to the staff affected and afford them the opportunity for questions and answers. Area manning rotas were altered to allow all staff the time away from work and transport to and from New Scotland Yard was provided for the event. Finance and Resource Managers (FRM's) also attended.

Trades union side

31. The Trades Union Side (TUS) has been consulted on a regular basis both at meetings specifically convened for this project and at the two monthly meetings with Property Services Department.

32. The Police Federation and the Metropolitan Police Committee has been kept abreast of developments at various routine consultative meetings.

33. As part of the ITT response both bidders were required to attend a meeting with the TUS to discuss their policies and specific proposals for the TUPE arrangements in respect of affected staff. Discussions included the bidders' record on previous transfers, the practicalities of how the services would be delivered, how management structures and interfaces would work and bidders' commitment to TUS recognition and consultation.

34. Representatives from the TUS, the Police Federation and Superintendents Association Department attended the evaluation of the BAFO bids and were afforded the opportunity to contribute and comment.

35. The TUS also attended the bidder presentations to staff in July 1999.

Operational officers

36. During August and September 1998 all portfolio Assistant Commissioners, the then 4 Area Assistant Commissioner, as well as 4 Area OCU Commanders and their senior management teams were fully consulted during the Scoping Study of Non-Accommodation Services in Police Stations on Metropolitan Police 4 Area.

37. In January 1999, as part of the ITN response, all four bidders were required to make detailed presentations of their proposals to Senior MPS Managers which included OCU commanders.

38. In July 1999 as part of the ITT response the two shortlisted bidders were required to make a presentation to all commanders and FRMs of affected Boroughs and afford them the opportunity for questions and answers. Principally this consisted of round table discussions, which concentrated on the practical delivery of services, sources of private sector recruits, manning levels and liability for failures in delivery. This included discussions on individual police station designs and their implications for operations.

39. In September 1999 as part of the ITT response the two shortlisted bidders made a presentation to Senior MPS Managers which included operational officers.

40. The area management staff and OCU commanders also contributed to evaluation of the BAFO bids.

Personnel department

41. The Area Management Team, have been responsible for informing and involving the area personnel manager throughout the project.

42. A 'P' Department representative has attended meetings with affected staff, the TUS meetings specifically convened for this project, the bidder presentations to staff in July 1999, meetings concerning pension and TUPE issues and is currently a standing member of the Project Board.

G. Implication of not proceeding with Police Support Services

43. The police support services are a significant part of the overall contract which has been tendered. This is clear from their monetary value and the weighting given to the subject in the scoring at ITN and BAFO stages of the procurement.

44. If the whole of the police support services had never been in the contract, the result at ITN stage would not have affected the two bidders who were rejected. Laing Hyder (now Equion) and Babcock & Brown would have still been considerably ahead of the two rejected bidders, however, Babcock & Brown would have been marginally ahead of Laing Hyder at that stage (the opposite of the actual result). By the time of the BAFO bid scoring, the deletion of the whole of the police support services would still have Laing Hyder in first place in the scoring but by a narrower margin than the actual result. This evaluation is based on an assumption that the deletion of police support services does not affect any other element of the bids.

45. Had the bidders been aware at BAFO stage that the police support services were not now part of the contract, they may have bid the contract very differently. The margin between the preferred bidder and the reserve bidder is too small to be confident that the result would have so remained if the police support services were not in the contract. The approach would be to re-tender the contract (with the deleted police support services) to the BAFO bidders.

46. The position is not so clear if only part of the police support services are deleted, for example the station reception officers or the civilian gaolers. This is because the scoring does not reveal the reviews of the MPS to only part of the police support services. The scoring was done against those services as a whole.

47. There is the likelihood of claims for wasted costs from both the preferred the reserve bidders although the extent of these claims are difficult to assess at this time. Claims from the rejected bidders is unlikely, as is the need to go back to ITN stage.

48. The other factors which would need to be taken account of are the potential for a further delay to the procurement, and the impact upon the credibility of the MPS generally.

H. Conclusion

49. Those involved with analysing bidder submissions, both MPS operational and non-operational staff and consultants, feel that a workable solution can be achieved.

50. The BAFO offer indicated year on year savings and achieves substantial risk transfer to the PFI supplier

51. It has been recognised that these operational services impact on areas that are key to the MPS performance. As a consequence particular attention has been given to developing mechanisms that motivate the service supplier and generates appropriate behaviours by both parties to the contract. This has been achieved through a performance and payment mechanism which places financial incentives on the service supplier to both provide staff and a good quality service.

Appendix D: Options

1. In support of this proposal a full business case has examined the options available to the MPS and has concluded as follows:

2. A 'do nothing' option. This is not acceptable for the following reasons:

  • existing accommodation is unsuitable for current operational requirements;
  • legislation regarding health and safety and disabled staff and public users requires substantial alterations at existing properties;
  • buildings are at the end of their economic life.

3. A 'do minimum' option involving the refurbishment of existing properties to restore economic life and upgrade these to current requirements. This option was also discounted for the following reasons:

  • this would require temporary relocation of existing resources which would be costly and impractical;
  • there are development restrictions at the main properties in terms of space and Local Authority development policy;
  • the solution fails to deliver efficiencies associated with the rationalisation of resources.

4. Finally, the option of providing leased accommodation for non specialist area crime accommodation was also considered and rejected because:

  • value for money. The new build options costed out as better value;
  • it was considered unlikely that suitable existing accommodation would be available.

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