C3I programme: proposed extension to contract with Lockheed Martin

Report: 10
Date: 20 January 2005
By: Commissioner

Summary

Due to delays in delivery of the Integrated Communications Platform (ICP), the Committee is asked to recognise the consequential delay to C3i implementation and transition to MetCall services, and to allow a contract extension to Lockheed Martin (LHM), who are currently providing Systems Integration services to the C3i Programme.

This proposed extension of 18 months from June 2005 is in accordance with existing contract documentation and will increase the contract value, all of which shall be funded from within the existing C3i consultancy budget.

The contract is structured in such a way that LHM consultants are utilised on a call-off basis, meaning that if this extension is granted, the MPS will not be under any additional financial or contractual obligations.

A. Recommendation

That members approve an extension to the MPS-Lockheed Martin contract for 18 months from June 2005, to be funded from the existing C3i consultancy budget.

B. Supporting information

1. In May 2002, following a competitive tendering process, Lockheed Martin (LHM) was awarded the contract to supply Systems Integration services for C3i implementation. The initial contract duration was three years (ending in May 2005) with an option to extend for a further 24 months as stated in the Invitation To Tender (ITT) documentation.

2. Since contract award, the scope of C3i implementation has significantly increased to incorporate enabling projects such as Airwave, Mobile Data Terminals (MDT), Integrated Borough Operations (IBO) and MetDuties, and as a result the levels of Integration and Business Change has greatly increased. Additional funding has been made available for consultancy work on IBOs and Business Change activity.

3. Following the termination of the ICP contract, a key component to C3i implementation, transition to C3i/MetCall live services has been extended. According to initial timescales, all integration work should have been completed by the Third Quarter (Q3) 2004 and the main thrust of transition would have been completed by the time the contract was due to end in May 2005. Planning dates now used show C3i transition complete in December 2006 with Programme close - out during the First Quarter (Q1) 2007. Appendix 1 refers.

4. Resource management has been a constant feature of C3i Programme Assurance, and a recent comprehensive “value management” review has reduced team sizes in all areas in an attempt to accommodate the extended timescales and reduce the costs.

5. An extension to the initial Lockheed Martin contract is requested to take the programme through the Implementation and Transition phases. The recommended maximum extension is for 24 months. An extension is sought for an 18-month period taking the LHM contract to December 2006, with an option to extend by a further six months if required. C3i transition is planned to end in the First Quarter (Q1) 2007.

6. The contract is constructed on a call-off basis, which enables the MPS to utilise resources and expertise where necessary, but puts the MPS under no obligation to do so; neither financial values nor employment durations are contractually binding.

7. To fund this extension, money will be reallocated from the existing C3i consultancy allocation contained in the Home Office grant for C3i project implementation. The C3i Programme Director has approved this after extensive resource and financial planning. There is no anticipated impact on other areas of Programme Delivery.

C. Equality and diversity implications

There are no issues specific to this report. Compliance with the meaning and scope of the Disability Discrimination Act 1995, the Race Relations Act 1976, the Sex Discrimination Act 1975, the Equal Pay Act 1970 and any Act of Parliament or other legal provisions relating to discrimination in employment, has been accepted in full by the proposed contractors and their sub-contractors within the recommended proposal.

D. Financial implications

The financial implications of the award appear in the linked exempt Appendix 2.

E. Background papers

None

F. Legal implications

There are no legal implications for the proposed extension of this contract as the original agreement allowed for the services provided to be extended by two years from that originally agreed.

G. Contact details

Report author: Mike Aston C3i Programme Director

For more information contact:

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

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