Renewal of Special Services Agreement with the Palace of Westminster Authority (POW) for the provision of security services

Report: 10
Date: 22 April 2004
By: Commissioner

Summary

This report provides Members with details about the renewal of the special service agreement (SSA) between the Metropolitan Police Authority (MPA) and the Palace of Westminster Authority (POW) in relation to the provision of security services within the Parliamentary Estate. The new agreement will be with effect from 1 May 2004 subject to MPA approval. This report seeks the approval of the MPA for the Clerk to affix the MPA's seal to the agreement. The MPA's legal adviser, Ian Adamson of Bircham Dyson Bell Solicitors, will be in attendance for the committee meeting to advise members on any legal points on which advice is sought.

A. Recommendation

That:

1. the renewal of the special services agreement between the MPA and the Palace of Westminster (POW) be approved;
2. the Clerk be authorised to affix the MPA's seal to the document and to make all other arrangements for its completion, including any minor formatting changes that may be necessary; and
3. the Committee notes that the Agreement will also need to be approved by POW, and that formal sealing of the Agreement will only take place after such approval has been obtained.

B. Supporting information

1. There has been a long-standing agreement between the Metropolitan Police Service (MPS) and the Palace of Westminster (POW) for the provision of security services within the Parliamentary Estate. This service is considered to be a special service under the terms of Section 25 of the Police Act 1996.

2. There has been a documented agreement with the Palace of Westminster since 1 April 1994. The current special services agreement with the POW commenced on the 1 September 1999 prior to the instigation of the MPA. The agreement was due for renewal by 1 April 2004.

3. Negotiations in relation to the renewal of the SSA have recently been concluded subject to any specific issues raised by this Committee. The current agreement will continue to allow for ratification by this Committee. Once approval is given, the agreement will proceed toward final signatory with a commencement date of the 1 May 2004.

Special Services Agreement - key points

4. The operation and management of the security service provided by the Palace of Westminster Division (SO17) is complex, and this, together with the need to define clearly the responsibilities of the respective parties is reflected in the degree of detail contained within the agreement. In order to assist Members, Appendix 1 has been attached to this report, which provides greater detail on the key issues contained in the SSA hereafter referred to as Contract.

5. In summary, Members should note the following improvements to the existing contract:

• The revised Contract is more commercially contractual in style and in content
• The new Contract will run until 31 March 2010, a longer term than previous contracts which lasted for five years
• The revised Contract brings together all the relevant documents into one overall package, as Annexes to the Contract, for the first time. The range of documents includes the Agreement between the MPS and the POW for the services of a Parliamentary Fire Section and Performance Indicators and Palace of Westminster (SO17) Improvement Objectives;
• A more focused level of policing services that are provided
• Acknowledgement within the Contract of such issues such as diversity, flexible working and information technology developments.

Discussion

6. This renewed Contract has been developed over a period of negotiation between appropriate personnel from MPS Finance Services, SO17 Branch and the Serjeant-at-Arms’ and Black Rod’s Departments. There have been a number of drafts that have been revised in light of legal advice from both MPA and POW legal advisors.

7. In March 2004, Sir John Quinton, who has been the MPA lead member during the negotiations, together with Rachel Whittaker (link member for Westminster) and the Clerk and Treasurer were given early opportunity to consider the renewed Contract in conjunction with MPS personnel. The Contract acknowledges the comments of the MPA members. It is the recommendation of the Commissioner and the Clerk that this Contract should be renewed.

C. Race and Equality impact

Equality and Diversity issues are dealt with specifically in Clause 19.3 of the Contract.

D. Financial implications

Schedule II of the Contract details the financial arrangements with the Palace of Westminster authorities to recover the annual cost of the security service provided by the Metropolitan Police Service. The total cost in the last full year (2003/04) was £22,115,046.

E. Background papers

None

F. Contact details

Report author: Craig Watkins, Head of Business Support, MPS.

For more information contact:

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

Appendix 1

Key Points from Palace of Westminster revised contract (Special Service Agreement)

1. Introduction

This appendix contains information highlighting the key issues from the revised Contract with the Palace of Westminster. For ease of use, the title and number of each Clause has been detailed in this appendix.

2. Interpretation (Clause 1)

The principal function of this clause is to assign specific definitions to particular terms in the agreement. A defined term is indicated where the leading letter is upper case.

3. Term and renewal (Clause 3)

The commencement date for this Contract is 1 May 2004 subject to MPA approval and shall continue unless terminated by either party to 31 March 2010 at which point there will be a review of the operation and effectiveness of the Contract. The Contract can be extended with the agreement of both parties by periods of 12 months to expire on 31 March in any year

4. Services (Clause 4)

In this clause the approach to the provision of services is stated:

• Services will be delivered in accordance with the provisions of the Contract demonstrating value for money.
• The operational discretion of the Head of Security, SO17 Branch will not be compromised.
• Services will continue to be provided in light of any changes to the addition or disposal of premises within the Parliamentary Estate.
• SO17 personnel are required to comply with specific regulations imposed by POW authorities in respect of any persons attending or working on the Parliamentary Estate subject to there being no impediment to the execution of their duties under this Contract.

5. Provisions relating to equipment (Clause 7 and 8)

• The POW is responsible for the provision of necessary equipment to enable the MPA to undertake the provision of the Services.
• Such equipment shall remain the property of the POW who shall be responsible for the repair, ongoing maintenance and subsequent replacement of said equipment.
• The MPA will be responsible for the repair and/or replacement of POW equipment at its own expense in the event of damage/default resulting from the failure of MPA staff to operate said equipment in an appropriate manner.
• MPA equipment brought to the Parliamentary Estate will be maintained in good and safe condition at its own expense. The title to this equipment will remain with the MPA.

6. Provisions relating to personnel (Clause 9 and 10)

• The MPA will ensure that their personnel are fully informed and trained in regard to their duties and obligations to enable timely and proper delivery of the Services as detailed in Schedule I to the Contract (Special Police Services).
• There is responsibility upon the MPA in ensuring appropriate levels of personnel to perform the Services are maintained.
• The MPA will keep the POW advised of any allegations of improper behaviour against MPA personnel. The POW have the right to exclude such personnel with immediate effect and in such circumstances, the MPA will provide a replacement at no additional cost.
• The MPA and POW will take reasonable to steps to identify and agree opportunities for flexible working, including part-time working, which cater for the personal needs of MPA personnel. Such opportunities are subject to statutory constraints upon the MPA and deployment of said personnel will remain within the discretion of the Head of Security.
• MPA will provide Fire Section personnel under the management of the Head of Security, SO17 Branch. Their responsibilities are set out in Schedule IV to the Contract (Existing Fire Section agreement).

7. Provisions relating to accommodation (Clause 11 and 12)

• POW will provide sufficient accommodation of suitable quality for the MPA to carry out the Services. Accommodation is provided free of charge and will be vacated on termination of the agreement.

8. The provision of facilities to MPA personnel (Clause 13)

• POW will arrange and bear the cost of transport up to distance of 25 miles to enable MPA personnel on duty to return home on occasions when either House of Commons or Lords has risen late and public transport is not available.
• This is normally a benefit to employees, which does not attract income tax. However, the Head of Security within SO17 Branch will be monitoring the provision of this facility. This is to ensure that, if any MPA personnel employed within SO17 makes use of the facility on more than 60 occasions, then the income tax that employee will attract is deducted from his/her salary.
• POW will endeavour to provide parking spaces for MPA personnel when duties coincide with times when public transport is not available.
• MPA personnel may use canteen and refreshment facilities provided by both Houses, subject to the usual access regulations.

9. Payment (Clause 14)

• POW are obliged to pay invoices showing actual costs, inclusive of VAT, incurred under the provisions of Schedule II of the Contract (Charges), as detailed in appropriate supporting information.

10. Right to audit (Clause 17)

• MPA are required to keep records of all expenditure, which is reimbursed by the POW. The MPA is empowered, with reasonable written notice, to afford reasonable access to the POW to such records to assist in any financial audit of the agreement.

11. Limitation of Liability (Clause 18)

• Liability of the MPA to the POW in regard to the provision of the Services is no greater than if the service had been delivered to the POW in the ordinary course of policing and not within this Contract. MPA Liability to the POW shall not exceed £7,500,000, except for claims involving death or private injury.

12. Statutory obligations and regulations (Clause 19)

• This clause includes undertakings for both the MPA and the POW in regard to the following matters:
  • Data Protection Act
  • Prevention of Corruption
  • Discrimination
  • Confidentiality
  • Disclosure
  • Environmental Requirements
  • Intellectual Property Rights

13. Health and Safety (Clause 20)

• Both parties are required to comply with the requirements of appropriate Health and Safety at Work legislation.

14. Control of the contract (Clause 22)

• This clause includes undertakings in relation to operation of the Contract. Specific mention should be made in relation to the following:
  • Variation to the Services – The Contract can only be varied by procedures as outlined in the Contract.

15. Termination (Clause 24)

• Either the POW or MPA may give one year’s notice of termination of this Contract to the other Party in writing to expire at the end of any calendar month.

16. Dispute resolution/arbitration (Clause 25 and 26)

• In the event that a dispute cannot be resolved through negotiation, the Parties will attempt to resolve the issue through a neutral adviser. The Contract will continue during this process.
• If the dispute is not resolved within thirty days of the resolution of the initiation of such procedures, then it is referred for arbitration.
• The dispute will be referred to the arbitration of two persons, one to be appointed by the POW and the other by the MPA. The process will be undertaken in accordance of the provisions of the Arbitration Act 1996 or any subsequent statutory modification or re-enactment.

17. Schedule I (Special Police Services)

• Schedule I details the range of services that will be provided to ensure the security of the Parliamentary Estate.
• An annex at ‘A’ contains a summary of the staff required to carry out the Services.
• The MPA and POW will undertake an annual documented security review.
• An appropriate level of security within the Parliamentary Estate is agreed by MPA and POW. This may be revised because of operational exigencies by the Head of Security, SO17 Branch who is required to obtain POW approval retrospectively.

18. Schedule II (Charges)

• Schedule II details the procedures for administering the financial arrangements between the MPA and POW for the reimbursement of the expenditure incurred by the MPA in providing the Services.
• Charges will comprise the following:
  • Actual employment costs for MPA personnel
  • Actual overtime costs
  • Other costs as detailed in Annex ‘A’ to Schedule II (Refers to charges for non-staff costs)
  • In specific circumstances, there is an abatement of charges for absences of MPA personnel from duty. The financial impact of this abatement, upon the overall charge to the POW for the provision of the Services will be monitored. This is to provide sufficient information for the MPA Finance Committee to consider the continuation of such an arrangement in the period leading up to the end of the Contract Period for this Contract in March 2010.
• POW will pay the monthly invoices based on proportions of 31 per cent for the House of Lords and 69 per cent for the House of Commons.
• The cost of armed security provided by the Diplomatic Protection Group (SO16 Branch) is invoiced separately using alternative procedures as follows:
  • The reason for this is that the armed officers from SO16 that are deployed each day at the Parliamentary Estate, come from a much larger pool of armed officers working within SO16.
  • As different armed officers from SO16 are deployed daily, the process used for reimbursement of the expenditure of the SO17 cannot be used.
  • An annual estimate of the total cost of the services provided by this group of officers is calculated. Invoices are issued on a monthly basis in the sum of one twelfth of the annual cost.
  • The House of Lords and Commons meet the cost of the armed officers from SO16 in the same proportions as used for the SO17 costs.

19. Schedule III (List of buildings within the Parliamentary Estate)

• Schedule III details the list of buildings forming the Parliamentary Estate.

20. Schedule IV (Memorandum of Agreement between MPA and POW for services of parliamentary fire section)

• Schedule IV details the level and nature of service to be provided by the MPA Fire Section within the Parliamentary Estate.

21. Schedule V (Key Services and Improvement Objectives)

• Schedule V details performance indicators against which performance can be measured.

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