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Report 17 of the 15 May 01 meeting of the Finance, Planning and Best Value Committee and discusses provision of accommodation for the re-organised North East Operations OCU and Territorial Support Group at Chadwell Heath.

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North east operations OCU - tender approval

Report: 17
Date: 15 May 2001
By: Commissioner


This report seeks approval to enter into a contract to provide accommodation for the re-organised North East Operations OCU and Territorial Support Group at Chadwell Heath.

A. Recommendation

Members are asked to consider the award of contract for accommodation for the North East operations OCU to the company identified in the exempt report.

B. Supporting information

1. A business case supporting the centralisation of North East Operational Command Unit (OCU) and Territorial Support Group was prepared by the Police Users and developed by Property Services Department into an agreed Accommodation Schedule. A First Stage Investment Appraisal considered options for the provision of accommodation. It concluded that the best value option to provide the necessary accommodation was the refurbishment and conversion of the redundant vehicle workshops adjacent to the existing Traffic Garage at Chadwell Heath. This proposal allows for the disposal or reuse of Bow Traffic Garage. Approval to proceed on this basis was given in accordance with Finance Manual delegation on 12 August 1999.

2. Detailed design work was undertaken by appointed consultants and a Second Stage Appraisal confirmed the choice of best value option and sought approval to proceed to tender at an estimated value of about £2.5m (based on rates current at 2nd Quarter 2000). Approval was granted in accordance with Finance Manual delegation on 22 June 2000, subject to a 5 per cent tender tolerance. Changes to MPS procedures in October 2000 incorporated Information Technology infrastructure into construction contracts and a provisional sum of £175,000 was included increasing the approved cost limit to about £2.6m.

3. As a result of the "fuel protests", the MPS agreed to the Home Office request to make provision for strategic fuel stores across London, to be funded by the Home Office. This site was identified as suitable, and a tender amendment was issued to that effect, resulting in an additional £210,000 being added to the cost of the works. Some minor additional works added a further £12,800. These, together with an update of the estimated costs to price levels current at the date of tender (1st Quarter 2001), result in an increase in the approved cost limit to about £3.0m (excluding the 5 per cent tender tolerance).

4. Five suitable tenders were submitted. The evaluation process considered the prices, Best Value and the quality of Partnering responses. Property Services Department and the project consultants jointly carried out the evaluation.

5. The Best Value tender received falls within the revised ACL.

C. Financial implications

The tender sum will be expended mainly over the 42 week contract period, spread over the current and next financial years, with a small retention held over into 2003/4. Certain repairs have been incorporated and the expenditure will be split between capital and revenue on a 90 per cent/10 per cent basis.

Bow Garage will be available for disposal or reuse from the date of occupation of the new facility in 2002/3. However, the site is currently being considered as a potential site for a C3i centre.

The Director of Resources has written to the Home Office to seek recovery of the additional costs for the fuel storage facility (letter dated 30 March 2001).

D. Background papers

  • First Stage Investment Appraisal dated August 1999 (including Users Business Case)
  • Second Stage Investment Appraisal dated May 2000

C. Contact details

The author of this report is Trevor Lawrence, MPS Director of Property Services.

For information contact:

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

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