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Report 14 of the 7 December 2004 meeting of the Finance Committee, outlining the principles upon which the Transport Services’ Strategy is based, and including two specific changes that will improve the availability and utilisation of the vehicle fleet.

Warning: This is archived material and may be out of date. The Metropolitan Police Authority has been replaced by the Mayor's Office for Policing and Crime (MOPC).

See the MOPC website for further information.

Metropolitan Police Authority Transport Services’ Strategy

Report: 14
Date: 7 December 2004
By: Commissioner

Summary

The aim of the Metropolitan Police Service (MPS)’s Transport Services is to provide available vehicle and boat fleets and an effective driver and distribution service in support of the Service’s mission to make London safe for all the people we serve. This report outlines the principles upon which the Transport Services’ Strategy is based and includes two specific changes that will improve the availability and utilisation of the vehicle fleet. Members are asked to endorse the MPS Management Board’s recent approval of this revised Transport Services’ Strategy.

A. Recommendation

That members endorse the revised MPA Transport Services’ Strategy that was approved by the MPS Management Board at its meeting on 5 October 2004.

B. Supporting information

Introduction

1. The purpose of this paper is to seek endorsement of the revised strategy for the delivery of the Metropolitan Police Service’s Transport Services’ functions that was approved by the MPS Management Board at its meeting on 5 October 2004. The strategy lists the key principles against which the various services are provided and highlights two specific changes designed to improve service delivery and against which the replacement outsource contracts, due to be in place in April 2006, can be negotiated.

2. Transport Services last reviewed its Fleet Strategy in 2000 when the Transport Research Laboratory (TRL) had been commissioned to produce a Transport Fleet Strategy. [1] This was used subsequently as the basis of a report to the MPA’s then Planning, Finance and Best Value Committee. The main recommendations of this paper were to:

  1. Reduce the number of different vehicles types by:
    1. Using one model to fulfil the Area Car, Traffic Car; and Armed Response Vehicle (ARV) pursuit roles; and,
    2. the abolition of the Unit Beat Car (Panda) using the fleet establishment to augment the Incident Response Vehicle (IRV) role, rationalising it to one model.
  2. Introduce a new fleet allocation process based upon a Vehicle Allocation Formula.
  3. Establish silver as the corporate base colour for the MPS marked car and motorcycle fleet; and presume that all Police vehicles will be marked and liveried unless operational reasons dictate otherwise.
  4. Rationalise the number of vehicle types employed in the non-Borough fleet.
  5. Continue to own, rather than lease or hire, the majority of its vehicle fleet. A proposal to adopt a vehicle pool mechanism to reduce vehicle non-availability due to accident repair or maintenance was rejected.

3. This Fleet Strategy was designed to provide guidance for 3–5 years so it is now an appropriate time not only to seek reconfirmation of the main principles espoused in the previous strategy but also obtain approval for two particular and significant changes that aim to enhance vehicle availability and utilisation in support of operational policing. It takes account of the issues raised during the last Her Majesty’s Inspectorate of Constabulary (HMIC) Inspection in January 2003. [2]

4. On 1 February 2001, the MPS operated some 4931 vehicles of which approximately 4130 were ‘owned’ and the remainder hired or leased. Since then, the number of permanently ‘owned’ vehicles has been reduced slightly, as a result of the Accenture Report and other cost saving measures, but an extra 892 vehicles have been acquired for short to medium term initiatives and operations such as the post-9/11 growth in Counter Terrorism, Safer Streets and the Transport Operational Command Unit (OCU). In addition, the number of vehicles on hire has also grown considerably. The total fleet, by 1 September 2004, had therefore grown to 6171 including 1494 hire vehicles. This 25% increase reflects the heightened tempo and success of policing operations and the greater number of police officers and staff.

5. This paper not only addresses fleet strategy but also covers the two other Transport Services’ functions that encompass the delivery of despatch, distribution and driver services.

6. The revised MPA Transport Services’ Strategy is attached at Appendix 1.

C. Race and equality impact

1. The implications of the application of the Disability Discrimination Act (DDA) as it applies to policing and therefore the supporting vehicles and transport services are under active consideration.

2. As regards MPS contractors, companies tendering for contracts are asked to complete commercial and technical questionnaires which address equality and diversity issues. From these responses, it is possible to ensure that the recommended company for the award of contract has both an acceptable Equality and Diversity Policy and a satisfactory industrial relations record.

D. Financial implications

1. Currently the resources for the provision and maintenance of MPS ‘owned’ vehicles are held centrally. The budgets for local hire vehicles and fuel are predominantly devolved to OCU level although hire rates and fuel costs are negotiated, and the contracts administered, centrally.

2. The FY 2004/05 annual Transport Services’ budget is £23.3M Revenue and £17M Capital; a further £3M (averaged over the past 3 years) Capital is spent on vehicles for short and medium term initiatives and operations. In addition, an approximate additional £2.5M Revenue will be charged to OCUs for the support of partnership vehicles and those provided for short and medium term initiatives. The total cost of fuel provision and operation of the fuel card system amounts to £8.5M. The total MPS forecast of expenditure on vehicle hire, covering both local and corporate requirements, for FY 2004/05 is £9.8M. Transport Services’ Capital expenditure is managed as part of the MPS Capital Programme and a Vehicle Replacement Programme (VRP) is maintained as Transport Services’ Asset Management Plan.

3. Therefore the current overall annual cost of the MPS vehicle and boat fleet and the provision of a centralised driver, despatch and distribution service, including fuel but excluding the cost of capital, is £44.1M Revenue and £20M Capital. These sums do not include all the capital elements for partnership and donated vehicles which are provided separately.

E. Legal implications

1. Apart from normal property contract matters there are no specific legal implications to report. Appropriate overage and clawback provisions are in place to protect the Authority.

2. The purchaser will need to comply with current statutory requirements and legislation.

F. Background papers

G. Contact details

Report author: Stuart Middleton, Director of Transport Services

For information contact:

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

Appendix 1: MPA Transport Services’ Strategy

Transport Services’ functions

1. As part of the MPS’s Resources Directorate, Transport Services seeks to contribute to the business of the MPS (working for a safer London) through the provision of first class, customer focused support services. Transport Services has four key outputs and one supporting function; these are to:

  1. Provide vehicles: Assisting the user to specify the requirement; encouraging as much standardisation and use of unequipped vehicles as possible; evaluating vehicles against the user requirement, MPS safety and performance standards and whole life cost criteria; selecting and procuring vehicles; maintaining a Vehicle Replacement Programme; designing vehicle service fits; equipping vehicles for service; registering vehicles and maintaining all vehicle documentation; and, finally, disposing of vehicles when replaced or no longer required.
  2. Manage the fleet: Allocating vehicles to OCUs in accordance with MPS Fleet Strategy, the Vehicle Allocation Formula and user deployment needs; facilitating vehicle hire arrangements; providing a ‘one stop’ Customer Help Desk; encouraging best practice in local OCU fleet management procedures; maintaining and repairing in-service vehicles and boats; arranging the repair of collision damaged vehicles; providing technical support to the repair and maintenance contractors and in-house workshops; investigating equipment failures and unreliability and, in conjunction with manufacturers, recommending and implementing appropriate remedial action; monitoring the safety of the vehicle fleet and the quality of repair and maintenance; arranging, managing and monitoring routine fuel provision through a fuel card mechanism; procuring bulk fuel and monitoring fuel stock levels and maintaining reserve fuel stocks; operating the MPS Congestion Charge arrangements, dealing with Fixed Penalty Notices and other vehicle related charges and documentation; and fulfilling the Head of Profession role for MPS garage hands who undertake the vital role of local vehicle husbandry and low level fleet management tasks.
  3. Provide despatch and distribution services: Providing a pan-MPS despatch and distribution service.
  4. Provide a driver service: Providing a centralised round-the-clock Transport Operations Office and temporary vehicle and driver service pan MPS; and fulfilling the Head of Profession role for MPS civilian drivers.
  5. Support the Transport Services’ business: As with any other department, planning and managing its performance including the monitoring of its expenditure against the allocated Revenue and Capital Budgets; managing contracts particularly those for outsourced services including the planning for their replacement or renewal as required; monitoring and validating income and expenditure with the external service contractors; maintaining a business continuity plan and managing the development and day-to-day running of department’s specialised information systems.

Key performance criteria

2. The key performance criteria for Transport Services are:

  1. Fitness for purpose vehicles that meet the users’ requirements.
  2. Vehicle availability.
  3. Vehicle safety and environmental impact.
  4. Timeliness and quality of despatch, distribution and driver services.
  5. Best value.

Fit for purpose vehicles

3. The MPS needs vehicles that support its role in policing London. Many vehicles have to be fitted with overt police equipment and need to meet or exceed the national standards established by the Home Office, the Police Information Technology Organisation (PITO) and Association of Chief Police Officers (ACPO). Others, required for a wide range of covert operations, also need a variety of police equipment but discreetly installed so that the vehicle’s anonymity is preserved. A large proportion of the vehicle fleet is however unequipped general purpose transport, although an increased proportion of this segment is now marked with MPS corporate livery in order to improve the overall visibility of MPS policing.

Matching user requirements

4. MPS vehicles must, above all, match the user’s essential requirements in order to support operational policing effectively. User requirements are therefore employed as the primary basis of selection of new models. Apart from performance, handling and braking tests conducted by Transport Services’ Vehicle Engineering section, models are evaluated on trial with a representative cross section of front line users and their feedback provides valuable input to the selection process.

5. There are two MPS committees that provide a user consultation link for Transport Services; the ACPO chaired Transport & Driver Forum (TDF) and its subordinate Transport & Driver Standards User Group (TDSUG) which is chaired by the Transport Services’ Operations Manager, a Chief Superintendent with recent Borough OCU (BOCU) experience. Representatives from all the MPS business groups sit on both committees.

  • It is essential to maintain a strong user link to influence both vehicle selection and Transport Services’ support processes.

Fleet rationalisation

6. Whilst there are some advantages in having a variety of vehicle types on the fleet, the disadvantages are reduced discounts on the purchase price, increased costs due to the needs to design equipment fits for a greater number of vehicle models and to maintain a more varied stock of spares and special tools and diagnostic equipment, as well as a requirement for increased technical training. Variety is needed on the covert fleet to maintain anonymity but, again, this should be sensibly constrained to only what is absolutely necessary.

  • The variety of vehicle types should be kept to a minimum consistent with meeting operational requirements and vehicle availability, and, in the case of the covert fleet, anonymity.

Equipping for service

7. Equipping vehicles for police use is expensive but specialist equipment is needed for command & control, to make progress through traffic, road safety and to meet a variety of other specific operational requirements. In general terms however;

  • MPS vehicles should only be equipped if there is a specific and justifiable operational requirement; and,
  • PS vehicles should be corporately marked, in order to increase police visibility, unless there are very specific operational or security reasons for the vehicle to remain unmarked.

Whole life costs

8. In order to meet the Authority’s contract regulations and the requirement to achieve best value, vehicles will be selected by competition, against the users’ technical specifications but with particular reference to whole life costs. Choosing vehicles from PITO approved lists and negotiating against the benchmark of PITO nationally discounted prices can usually satisfactorily meet these goals. Warranties on new vehicles are commonly now three years and their availability, particularly on the high mileage response vehicles, markedly reduces repair & maintenance costs. Therefore:

  • Vehicle procurement should be by competition against users’ requirements tempered by whole life costs; extended warranties should be sought where possible to reduce through life costs.

Vehicle disposal

9. At the other end of vehicles’ lives, it is important to obtain the best possible residual values for this equipment and for the process to be transparent with a clear audit trail to the prevailing second-hand vehicle market. The equip for service contractor is also responsible for decommissioning most police vehicles and preparing them for public auction. Vehicles are placed to one of three geographically dispersed auction houses to obtain the best prices.

  • Vehicle disposal should be by public auction with vehicle preparation and submission to individual sales being appropriately directed in order to obtain best residual prices.

Vehicle marking schemes

10. MPS corporate vehicle markings need to comply with national guidelines, legal requirements, and MPS branding principles. It is important that the marking of MPS vehicles is simple; clear and uncluttered; consistent and for it to present a professional image. With a very few specific exceptions, authorised by Management Board, it should project the MPS corporate image and not the individual identities of business groupings, OCUs, teams or particular functions.

  • The MPS vehicle marking schemes should comply with national guidelines and MPS branding principles and be simple, clear and uncluttered, consistent and present a professional corporate image.

Vehicle availability

Vehicle allocation

11. It is important that the MPS’s vehicle resources are correctly distributed based on operational need. The allocation of vehicles to OCUs is as a result of historic precedent tempered by prioritised growth. The allocation between the different specialist OCUs in Specialist Operations and the Specialist Crime Directorate has been determined by priority of need. However within Territorial Policing, where there are several similar OCUs undertaking the same role, it is possible to ensure an equitable distribution of vehicles more easily. A Vehicle Allocation Formula (VAF) has been devised that takes account of five different parameters in order to calculate an individual Borough OCU’s appropriate share of the overall vehicle fleet. These parameters are:

  • Numbers of Police Officers: The proportion of the total number of Police Constables by BOCU as determined by the Resource Allocation Formula (RAF).
  • Road Length: The proportion of the total road length by BOCU.
  • Numbers of Immediate Responses: The proportion of Immediate Responses by BOCU.
  • Road Density: The density of roads (by length) per square kilometre by BOCU.
  • Results of the 2001 Fleet Review: The re-distribution of vehicles determined by the previous 2001 Fleet Review was used as the original start point. This previous review had used a method based upon vehicle utilisation by time. Individual BOCUs’ utilisation percentages were related to the average for all BOCUs to determine whether they were over- or under-utilised and vehicle allocations were adjusted accordingly.

The vehicle allocation between (B)OCUs continues to be adjusted as the requirement changes. The current review of police officer numbers allocation, using RAF, aims to widen its applicability to other resources and is likely to subsume vehicles, and the VAF.

Vehicle ownership

12. Vehicle availability is the key performance criterion that directly affects policing effectiveness. The availability of Territorial Policing’s response fleet is particularly critical. The current repair & maintenance outsource contract, which covers 80% of the MPS vehicle fleet, uses availability as a Key Performance Indicator (KPI). However this KPI measures availability across the whole fleet which can lead to local pockets of poor availability. Whilst there are mechanisms in place to minimise the adverse effect of this approach, such as manual intervention or ‘hot spotting’, the fleet-wide availability KPI is nevertheless a weakness in the current contractural arrangement.

13. It is therefore proposed to adopt a different approach for the MPS response vehicle fleet in the next generation of outsource contracts, due to start in April 2006. This revised approach will guarantee vehicle availability for response vehicles by utilising a reserve pool of vehicles to maintain a set number of vehicle ‘slots’ at BOCU level. When a vehicle fails, it will be repaired or replaced within a set time, probably about 4 hours. Vehicles that are removed from service for routine maintenance will be similarly replaced. The approach to be adopted for collision damaged vehicles will be similar but only if affordable.

14. The implications of this approach are that vehicles will no longer be dedicated or ‘owned’ by BOCUs but will effectively rotate around the MPS fleet. It will therefore also be easier and quicker to effect changes to BOCUs’ fleet profiles. The cost of establishing the additional pool of vehicles needed to sustain this alternative ‘stewardship’ approach will be met by a combination of slight extensions to vehicle service lives and reprofiling BOCU fleet sizes however the overall impact will be that more response vehicles will be routinely available on the ground and that the resultant increased stability in vehicle availability should greatly assist operational planning.

  • The MPS should adopt a ‘stewardship’ rather than ‘ownership’ approach for response vehicles, in particular, in the next generation of outsource contracts; this change will enhance and guarantee vehicle availability at a local level.

Local vehicle fleet management

15. It is also important to encourage better day-to-day local fleet management of vehicles at (B)OCU level. The wider adoption of best practice to improve vehicle management, utilisation and husbandry at local level will optimise vehicle availability to front line policing. Of all the factors that affect availability, improved utilisation - particularly by organised ‘sharing’ of the available resources - is the most important. The advent of Integrated Borough Operations (IBO) rooms provides a valuable opportunity to facilitate this approach.

  • Best practice local fleet management should be adopted and encouragement given to ‘share’ vehicle resources wherever possible as these will have a marked impact on the overall availability of vehicles.

Availability of fleet information

16. An essential element of cost effective fleet management is the wide and ready availability of vehicle allocation, deployment and utilisation data together with useful information concerning the vehicle replacement programme and a catalogue, by user requirement and vehicle capability, of available vehicles. The ability to ‘push’ this data and information, via the MPS Intranet, to Transport Services’ customers is extremely important as indeed is the capability to collect fleet and vehicle data ie ‘pull’ information and data via the same means.

  • Ready access to up-to-date vehicle fleet information across the MPS will have a beneficial effect on local vehicle availability and hence policing outcomes.

Vehicle safety and environmental impact

Safety

17. Apart from the usual health & safety considerations for the operation of vehicles, particular attention needs to be paid to the selection and maintenance of MPS response and pursuit vehicles because of the additional risks involved in operating them outside the Highway Code, potentially for sustained periods near the extremes of their performance envelopes. The performance, handling and braking characteristics of all potential MPS response and pursuit vehicles will therefore need to be carefully assessed against appropriate criteria before selection. The maintenance regime for such vehicles will also be reviewed and may be enhanced to reflect the greater demands imposed by the operating patterns, particularly with respect to braking systems.

  • Vehicles should be subjected to appropriate performance, handling and braking tests before acceptance as MPS response or pursuit vehicles. Additional maintenance, particularly of braking systems, may need to be imposed.

Environmental considerations

18. The GLA has taken the initiative to reduce substantially the environmental impact of vehicles within London. As the lead member of the GLA family, the MPA/MPS needs to reflect that leadership by ensuring that the environmental impact of its own vehicle fleet is minimised compatible with policing activities. Therefore, environmental considerations, particularly concerning choice of fuel and application of the latest vehicle technologies, must be a key factor in the selection and operation of the MPS vehicle fleet.

19. The 2001 TRL Fleet Strategy included a significant section on the environment and many of its recommendations and actions arising have since been included in the MPA Environmental Strategy. [3]

20. Transport Services is responsible for maintaining a section of the overall MPA Environmental Strategy that is regularly updated and published. The transport services’ element of the environmental strategy is currently being fundamentally reviewed and revised to develop a more refined approach with the assistance of an external environmental advisor.

Disposal of vehicles and waste materials

21. The MPS will dispose of redundant vehicles and the waste materials that arise from the vehicle repair & maintenance, equipping for service and collision damage repair activities in a responsible manner as described in the MPS Environmental Strategy.

  • Environmental considerations should be a key factor in the selection of the MPS vehicle fleet, where compatible with policing activities. Redundant vehicles and waste materials should be disposed of in accordance with legislation.

Despatch, distribution and driver services

Despatch

22. The MPS internal Despatch Service conveys about 4 tonnes of mail and other items including forensic exhibits every working weekday. It delivers to and collects from approximately 300 locations and operates 18 routes, many of which include non-MPS locations such as offices of the Crown Prosecution Service, the Forensic Science Service, the Courts, Government offices and supporting commercial companies. The Despatch Service visits all locations daily and the collected mail is taken to a central sorting facility where it is sorted for redistribution to its intended destination.

Distribution

23. The MPS Distribution Service receives, at one central point, goods and other items ordered by OCUs and supplied by eight major MPS suppliers. The stores are then sorted and delivered to approximately 320 MPS locations weekly. The service also delivers and collects uniform clothing and equipment, publications, bulk mail and confidential waste for subsequent disposal by a specialist supplier.

Drivers

24. The MPS Driver Services are available 24-hours-a day, 365 days per year, primarily to support both planned and unexpected operations, ranging from public order events through to terrorist incidents and rail accidents, that may involve the movement of large numbers of officers, supplies and equipment requiring the use of coaches, trucks, minibuses, cars, vans and specialist vehicles. Driver Services also provides a car & driver service that supports day to day administrative travel both within the Capital and beyond.

25. The car & driver service is constrained by the availability of the limited driver pool. When demand exceeds supply, other transport means are used in the following order of precedence:

  1. Reserve Driver Pool (using part-time ex MPS employees).
  2. Contracted out drivers & cars, as appropriate dependent upon security clearance requirements, from:
    • Black Cabs (licenced drivers).
    • Government Car & Despatch Agency (security cleared drivers).
    • National Car Rental - Car & Driver Service (usually non security cleared drivers).

Matching the requirement and cost effectiveness

26. The requirement for the MPS’s despatch, distribution and driver services not only includes security limitations but also demands cost effective delivery. The services therefore need to be routinely benchmarked and alternative sources of supply investigated. Currently the intention is to retain these services mainly in-house because of the difficult-to-meet security considerations however this decision needs to be regularly reviewed.

  • The MPS has a continuing requirement for secure despatch, distribution and driver services. These are currently mainly provided in house but this decision need to be regularly reviewed for cost effectiveness.

Best value

27. As a taxpayer funded public service, there is an underlying need to achieve Best Value/Value for Money in all the MPS’s activities, obviously including those undertaken by Transport Services.

28. There is a requirement to review and consider the right future balance between in-house and outsourced services; and develop the way forward for how the present outsourced contracts are to be replaced and possibly extended. In addition, the proportions of the owned, leased and hired elements of the vehicle fleet and the types of competitive procurement techniques to be adopted for equipment, fuel, and car and transport hire, need to be routinely re-assessed.

Outsourcing

29. A significant part of the previously in-house transport services were outsourced in early 1999; these contracts expire in April 2006. These services are currently provided by the two major transport outsource contracts (repair & maintenance and equipping for service) and the contract for vehicle hire and lease. A separate contract for the support of the 244 public order carriers was awarded to AssetCo Emergency in March 2004; the process for award of this latter contract was used as a partial pilot for, but does not form part of, the current outsourcing exercise.

30. In view of the long lead time needed to plan replacement arrangements, the MPS established an Outsource Services Programme (OSP) in late 2002 initially to develop a strategy to re-examine the sourcing requirements for these services. The Transport workstream within the OSP has developed both sourcing and high-level packaging strategies for the future provision of services.

31. The work has involved a comprehensive consultation process to determine the scope, service levels and packaging strategy that should be adopted to achieve the objectives for the next generation of transport contracts. This has involved not only MPS stakeholders but, particularly, key contacts in other organisations in receipt of similar services and suppliers of differing related transport services. Their views were sought on packaging, transition, transfer of data, contract duration, staffing/TUPE issues, attractiveness of the potential deal, market trends and current best practice.

32. These strategies have addressed a number of lessons learnt from the previous outsourcing exercise, the resultant contracts and their performance. The result is that the sourcing and packaging strategies will aim to rectify the following issues:

  • Problems caused by the use of MPS-wide vehicle availability targets which can sometimes leave individual (B)OCUs short of vehicles even though the agreed contract performance is being met.
  • Vehicle availability problems caused by a failure to co-ordinate (by provision of a ‘one-stop-shop’ service) vehicle and vehicle-mounted ICT equipment repair.
  • Under-utilisation of the general purpose fleet and a significant and growing use of hire vehicles that reflects a rising concern that the overall cost of owned and hired GP fleet might be better controlled and optimised.
  • Capacity limitations and high running costs of the in-house covert EFS and collision repair facilities.

33. The approach being taken is now to offer 7 lots of work which will include, for the first time, the equipping for service of covert vehicles. Risk assessments have been conducted with Specialist Operations (SO) and Specialist Crime Directorate (SCD) and it has been concluded that we can put in place effective control measures to cover the security requirements needed to protect vehicles whilst they are being equipped for service. Of necessity, on occasion we have already successfully had work of this nature done by our existing equipping for service contractor. However, the repair and maintenance of covert vehicles will be retained in house because of the close link with ongoing operations and the requirement for the associated police officers to visit the vehicle maintenance premises.

34. The table below summarises how the range of transport services are currently provided and how this translates into the proposed seven lot structure:

Lot number Services provided Current provision
1 Equipping For Service (EFS) of specialist police vehicles and associated services S MacNeillie & Sons
2 EFS of covert specialist police vehicles and associated services In-house
3 Repair and Maintenance (R&M) of specialist police vehicles and provision of selected fleet management and other associated services Venson Public Sector Ltd
4 R&M of General Purpose vehicles and the provision of selected fleet management and other associated services Venson
5 Provision of non-MPA-owned general purpose vehicles on short and medium term rental and long-term lease arrangements and associated services Vanguard Rental UK Limited (National)
6 Collision Repair services for specialist police vehicles and general purpose vehicles Venson
7 Repair & Maintenance of specialist equipment to specialist police vehicles Venson MacNeillie, NTL

Note: The bidders have still also been requested to respond to a sub-set of Lot 6 – Lot 6A – covering covert vehicles

35. The contract award is scheduled to occur in late Summer 2005 with contract start dates in April 2006.

  • The MPS should seek best value outsource provision of its vehicle equipping for service, repair and maintenance (including collision repair) and provision of general purpose unequipped vehicles services, retaining only covert vehicle repair and maintenance in house.

Improving our business processes

36. The success of any enterprise depends on a number of factors. A set of effective business processes is amongst the most important of these. Evidence from Excellence Model self-assessments, staff surveys and our day to day working supports this assertion. At the same time, the evolving work of the OSP Transport workstream suggests that there could be much to gain from reviewing and carefully modifying Transport Services' processes and organisation to better match the new suite of outsourced contracts; currently 56 staff work in Transport Services’ central client unit and 175 within the 3 in-house workshops and the internal despatch, distribution and driver services.

37. The advent of a new suite of outsource contracts in April 2006, hopefully including a new, more flexible and cost effective way of meeting the MPS’s requirements for unequipped GP vehicles; and the slightly earlier introduction of a replacement transport information system (IS) under Project Link Phase III in July 2005 provide opportunities for performance improvement within the Transport Services residual in-house team. The principal areas for improvement are requirements to:

  • Improve the Customer Focus.
  • Place better fleet information in the hands of customers, including data on their permanent and hire vehicle fleets, utilisation and replacement plans; and clear instructions on how to access the various transport services.
  • Introduce enhanced contract management and monitoring mechanisms with better focused Key Performance Indicators (KPIs).
  • Encourage better local fleet management.
  • Improve and refine the tracking and consideration of whole life costs in the selection and support of police vehicles.
  • Manage better the movement of vehicles around the fleet to optimise utilisation and achieve best value.
  • Investigate and take advantage of new technologies, such as electronic logbooks, to reduce workloads and contribute to improved outputs.
  • Transport Services should use the opportunities presented by the introduction of the new suite of outsource contracts and the Project Link transport IS to improve its internal business processes and structure.

Fuel supply

38. The use and provision of fuel, an expensive resource, needs to be carefully controlled in the interests of best value. The MPS procures its fuel on a competitive basis. Fuel for MPS vehicles is provided either through the MPS bulk fuel sites or through the fuel contractor’s chain of 24 hour petrol stations using a fuel card.

39. In line with the objectives of the MPA Environmental Strategy, cleaner fuels are procured for the bulk fuel sites; for example, low sulphur and bio-diesel fuels.

40. The MPS bulk sites provide a fuel reserve for the London emergency services and are kept filled to at least 50% capacity. This level is increased to reflect prevailing operational requirements as and when Management Board directs. Fuel stocks are monitored daily and a report of stock levels is published weekly.

  • Transport Services should continue to procure fuel by open competition, ensure availability of convenient 24 hour outlets geographically evenly spread across London and maintain a bulk fuel reserve.

Annex A: Summary of Transport Services’ Operating Principles.

Appx 1 para nos Key features Remarks
Fit for purpose vehicles
3 – 5 It is essential to maintain a strong user link to influence both vehicle selection and Transport Services’ support processes. The roles and focii of the Transport & Driver Forum and its subordinate Transport & Driver Standards User Group are essential in ensuring the provision of ‘fit for purpose’ vehicles and that Transport Services’ processes and procedures remain customer compliant.
6 The variety of vehicle types should be kept to a minimum consistent with meeting operational requirements and vehicle availability, and, in the case of the covert fleet, anonymity. There should be as much rationalisation of the fleet as possible and continuing consideration should be given to reducing variety eg by reassessing the continuing requirement for Area Cars and for the number of motorcycles, both of which are comparatively expensive vehicles to operate.
7 MPS vehicles should only be equipped if there is a specific and justifiable operational requirement. It is easier and cheaper to provide and maintain unequipped vehicles and facilitate the full choice between the options of ownership, lease and short or medium term hire to achieve best value.
7 MPS vehicles should be corporately marked, in order to increase police visibility, unless there are very specific operational or security reasons for the vehicle to remain unmarked. As many non-liveried MPS vehicles as possible, within acceptable operational constraints, should be marked with the MPS corporate logo on the front doors In order to enhance MPS visibility.
8 Vehicle procurement should be by competition against users’ requirements tempered by whole life costs; extended warranties should be sought where possible to reduce through life costs. Models will normally be selected from the PITO list based on fitness for role and optimum whole life cost. The use of the PITO discounted price as a target maximum benchmark meets procurement regulations and the requirement to achieve best value.
10 The MPS vehicle marking schemes should comply with national guidelines and MPS branding principles and be simple, clear and uncluttered, consistent and present a professional corporate image. The base colours are:
  • Silver for liveried cars & motorcycles (based on best residuals; in the case of vans and other vehicles silver is more expensive).
  • Red for DPG vehicles.
  • Dark Blue for armoured vehicles.
  • White for SEG motorcycles.
  • White for all other liveried vehicles.
Vehicle availability
12 – 14 The MPS should adopt a ‘stewardship’ rather than ‘ownership’ approach for response vehicles, in particular, in the next generation of outsource contracts; this change will enhance and guarantee vehicle availability at a local level. This change in emphasis will facilitate a move to a ‘slot’ system whereby higher response vehicle availability can be guaranteed.
15 Best practice local fleet management should be adopted and encouragement given to ‘share’ vehicle resources wherever possible as these will have a marked impact on the availability of vehicles. Managed ‘sharing’ of the MPS’s vehicle resources can be facilitated through the new Integrated Borough Operations (IBO) rooms.
16 Ready access to up-to-date vehicle fleet information across the MPS will have a beneficial effect on local vehicle availability and hence policing outcomes. Transport Services’ Intranet site needs to be developed to provide interactive access to fleet information.
Vehicle safety and environmental impact
17 Vehicles should be subjected to appropriate performance, handling and braking tests before acceptance as MPS response or pursuit vehicles. Additional maintenance, particularly of braking systems, may need to be imposed. MPS vehicles will be Original Equipment Manufacturer (OEM) standard models as far as possible. This is to ensure the strongest link to the OEM’s own design, testing and safety regimes. It also assists the end of life disposal process.
18 – 21 Environmental considerations should be a key factor in the selection of the MPS vehicle fleet, where compatible with policing activities. Redundant vehicles and waste materials should be disposed of in accordance with legislation. Where possible, MPS vehicles should be diesel powered and to the highest Euro standards within the constraints of economic life cycles. Alternatively powered, and more environmentally friendly, vehicles will be adopted where compatible with policing activities.
Timeliness and Quality of Despatch, Distribution and Driver Services
22 – 26 The MPS has a continuing requirement for secure despatch, distribution and driver services. These are currently mainly provided in house but this decision need to be regularly reviewed for cost effectiveness. Security considerations preclude outsourcing these services. The requirement to maintain Driver Services in-house is linked to the critical mass of drivers needed to provide the Despatch Service. In order to provide resilience and flexibility, the MPS will obtain drivers and cars from four sources: Driver Services, the MPS Reserve Driver pool, by external contractor and by use of London taxis.
Best value
9 Vehicle disposal should be by public auction with vehicle preparation and submission to individual sales being appropriately directed in order to obtain best residual prices. MPS vehicles are de-equipped before disposal. They are disposed of by public auction with one of three contracted auctioneers. Vehicles are placed with the auctioneer most likely to obtain the best price; influencing factors such as the season and local demand are taken into account.
29 - 35 The MPS should seek best value outsource provision of its vehicle equipping for service, repair and maintenance (including collision repair) and provision of general purpose unequipped vehicles services, retaining only covert vehicle repair and maintenance in house This is an extension to the current position however the in-service repair & maintenance of covert vehicles will be kept in-house because of the potential link to specific police officers and operations.
36 – 37 Transport Services should use the opportunities presented by the introduction of the new suite of outsource contracts and the Project Link transport IS to improve its internal business processes and structure. The transfer of some administrative functions to the new contractor should provide the opportunity to improve customer focus, facilitate better local fleet management and optimise vehicle utilisation.
38 - 40 Transport Services should continue to procure fuel by open competition, ensure availability of convenient 24 hour outlets geographically evenly spread across London and maintain a bulk fuel reserve.  

Footnotes

1. Fleet Strategy September 2001 - Document Reference: 05416/R5. [Back]

2. HMIC Inspection Report by Finance and Resources Adviser dated 20 August 2003. [Back]

3. MPA Environmental Strategy 2002/2005 (a new strategy covering the period 2005-10 is due to be issued in late 2004). [Back]

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