Programme for re-tendering the services delivered through the current outsource contracts

Report: 12
Date: 21 October 2004
By: Commissioner

Summary

This report informs the Committee of the status of the programme for re-tendering all those services currently delivered to the MPS through the existing main outsource contracts.

A. Recommendation

That members note the status of this ongoing programme.

B. Supporting information

Programme progress report

1. This report provides updated information regarding the Outsource Services Programme since the last progress report.

Contractual issues update

2. Previous reports to the Committee highlighted the completion dates and contractual extension options for all existing contracts, including the need for activity involving strategic reviews of existing contracts, their performance and how existing services should be packaged in the future.

3. In addition details were provided of the forecast timescales to undertake the above activity along with the subsequent re-tendering. The need was identified for a phased programme to ensure the process is manageable. Provision of extensions would be subject to approval on an individual basis and where extensions to the existing contracts were agreed, the opportunity would be taken to extract value and deliver benefit to the MPS. All risks associated with the programme are being actively monitored and managed.

4. A report recommending extensions to a number of the existing ICT contracts was approved by this committee on 29 June 2004 and subsequently by the Finance committee. Post this approval, of the five extensions agreed by the MPA, one has been signed and three are due to be formally signed by all parties by early October 2004. The formal signing of the remaining agreement for radio services is delayed due to the impact of issues arising from related projects with this supplier.

5. The Property Services (PSD) Sourcing Strategy, approved by this committee on 29 June 2004 and subsequently by the appropriate Finance committee, highlights the need for an additional extension to the Interserve agreement to reflect the deferred procurement timescales to support the procurement of the new PSD IT system. Discussions with Interserve regarding this extension will commence during October 2004.

Resource position

Internal recruitment

6. To reflect internal movement of staff within the MPS, additional resources have supplemented the programme office.

Consultancy support

7. Consultancy support has been in place since September 2003. Expenditure, up to August 2004 is in line with budgeted targets for the programme as indicated in exempt Appendix 1.

Programme activity

OJEU notices

8. Requests for approval to issue appropriate OJEU notices for the services identified in the Property Services Sourcing strategy and for the ICT Development supplier framework agreement have been sought in line with MPA regulations. The next OJEU notice planned is the provision of the PSD Facilities Management Information Centre provider, which will be issued during November 2004.

Procurements in progress

9. The procurement of Payroll and Pensions administration services has reached the detailed negotiation stage with two bidders taken forward for each of the three lots. Members should note, as a result of responses received, that the current supplier of payroll services has not been taken forward to the negotiation stage. The procurement of ICT Core Services has entered its Invitation to Negotiate stage (ITN) with responses from bidders due end of October 2004. The procurement of Transport Services has completed its ITQ evaluation stage and will commence its ITN stage during October 2004.

C. Race and equality impact

1. There are no direct diversity and equal opportunity implications related to this report. When the actual contracts are being considered (as opposed to the programme) for retender etc, all aspects of RRA, diversity, environment are considered in the context of that contract for goods or services given that each may have different issues

2. Consultation processes with MPS staff with regard to future requirements are ongoing for each of the work streams. A briefing process has been agreed with trade union representatives with a representative attending relevant meetings in each work stream and bi-monthly briefing meeting continue to be held between the programme director and relevant trade union and staff association representatives.

D. Financial implications

A revised version of the original budget forecast will need to be produced and approved to reflect the latest known plans. Expenditure for 2004-5 has been included in the Procurement Services budget and the overall forecast in the Medium Term Finance Plan revised to reflect the latest known and forecast costs. An overview of expenditure incurred against the Medium Term Finance Plan for the period up-to the end of August 2004 is provided at exempt Appendix 1.

E. Legal implications

1. The OS Programme can confirm that the programme and associated procurements comply with procurement regulations and all relevant EU and UK Government Directives.

2. The OS Programme can confirm that the programme and any associated identified proposals and decisions within the powers of the Authority.

3. At this stage of the procurement process the contract and terms and conditions for all procurements are still subject to negotiation, but the drafts reflect the standard MPA terms and conditions. The OS Programme is drawing on specialist technical and legal advice to ensure that relevant clauses will be included to minimise or manage any risks that may emerge during negotiations.

4. The OS Programme can confirm that the ITN documentation (which includes a summary of the proposed contract) contains all the usual commercially appropriate terms and no unduly onerous terms.

F. Background papers

• Report to Finance Committee – 10 July 2003 entitled “Appointment of Consultants to support the Outsource Services re-tendering programme and the Procurement Business Process Improvement Programme”
• Report to Finance Committee – 23 October 2003 entitled “Property Services Outsource Contracts and Commercial Strategy beyond their Initial Expiry Date of 1 January 2004”
• Report to Co-ordination and Policing Meeting – 17 May 2004 entitled “Approval to Issue “Invitation to Negotiate (ITN)” documentation for the re-tendering of payroll and pensions administration services”
• Report to MPA Finance Committee –22 July 2004 entitled “Approval to Issue “Invitation to Negotiate (ITN)” documentation for the re-tendering of ICT Core services ”
• Report to Finance Committee – 22 July 2004 entitled “Programme for Re-tendering the Services through the Current Outsource Contracts”
• Report to Finance Committee – 22 July 2004 entitled “The extension of the existing ICT Outsourcing Contracts”

G. Contact details

Report author: Steve Atherton – Director, Procurement Services

For information contact:

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

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