Technical Procurement Framework

Report: 11
Date: 3 May 2007
By: Director of Information on behalf of the Commissioner

Summary

At present the MPS largely procures electronic security equipment and services through contracts let competitively in one-off procurement exercises. In order to meet projected increases in the scale of procurement to facilitate the Borough Estate Strategy and as part of improving current purchasing arrangements that are not suited to larger contracts where OJEU notice rules apply, this report proposes the establishment of a Technology Procurement Framework. The scope of the framework is to cover the technology required to fit out of buildings, in particular for electronic security equipment such as CCTV, access control and alarms. The need for suppliers to co-operate in Property Services commercial arrangements will be a key feature. The framework approach chosen is similar to the Development Services Framework set up by the Directorate of Information.

The framework does not commit the MPS to any expenditure. It replaces existing procurement methods and establishes a structure through which the MPS can ensure that contracts for the fit out of buildings are let in an efficient, lawful and secure manner. The framework is expected to run from November 2007 to November 2011. The maximum value for all contracts issued during the four year Framework life span is set at £34.3m.

Authority is sought to issue an OJEU notice and ITT for participation in the framework. Following evaluation of tenders, DOI will return to the Finance Committee seeking approval to award contracts for framework membership.

A. Recommendations

Members are asked to:

1. Note and approve the issue of an OJEU notice and ITT to identify suitable companies to be considered for appointment as participants in the Framework.
2. Note that a further report will be submitted to the Committee seeking approval to award contracts for framework membership

B. Supporting information

1. At present the MPS largely procures electronic security equipment and services through contracts let competitively in ad hoc procurement exercises. A significant increase in the number and value of contracts for building electronic security systems is expected over the next few years due to the aspirations of the Estate Strategy, future large HQ buildings and the scale of works likely to be needed for the Olympic Games. The current procurement approach will not enable the MPS to efficiently meet increased requirements with existing resources.

2. In Spring 2006 a Working Group was established with representatives from the Directorate of Information’s Technology Group and Procurement Services to develop a technology procurement strategy. The Working Group concluded that the best approach would be through a framework arrangement and drafted a Statement of Requirements (SoR) for a Technology Procurement Framework. The scope of the framework covers CCTV, access control, alarms and other electronic systems for general building fit outs. It does not cover overt/covert operational support work or ICT equipment for which other more appropriate commercial routes exist.

3. The main benefits of the framework are:

• Adherence to regulations for competitive contract letting and best value. In particular the Framework will allow larger contracts to be let without full OJEU notice procedures and associated time lags. Best value would be demonstrated by competing requirements using mini competitions among the Framework suppliers in accordance with the relevant EU Directives.
• Standardised terms and conditions together with established bona fides for framework participants will reduce Procurement Services effort.
• Contracts will be let for all MPS electronic security elements of whole buildings rather than on a system-by-system basis. This will reduce the number of contracts and simplify the MPS management effort for implementation work.
• Detailed design work will be done by suppliers based on a defined Operational Requirement. This will enable project officers to reduce effort on labour intensive tasks (which will be transferred to suppliers) to concentrate on project management and deal with the anticipated increase in workload implied by the Estate Strategy.
• Long-term maintenance will be done by suppliers. This will create incentives for careful installation of reliable equipment, reduce inter-supplier disputes and allow the MPS to benefit from equipment warranty periods.
• Provide an efficient approach to small-scale procurements of standardised deliverables that are likely to reduce time lags from weeks to days whilst retaining a competitive environment.

4. The main impact of not implementing the framework is likely to be increased costs required to manage the rising work demands of the Estate Strategy. The MPS aim is to do more with existing resources through the framework and thereby reduce demand for additional recruitment.

5. One key aspect of the requirement is that framework suppliers must co-operate in Property Services’ commercial arrangements for construction, fit out and maintenance projects. In particular framework suppliers will be expected to agree to act as sub-contractors and to adhere to Construction (Design & Management) Regulations as appropriate.

6. Framework commercial managers will be mindful of the possible impact of TUPE legislation from existing Property Services contracts when letting work for installation and maintenance.

7. The framework will be procured through a standard OJEU method as advised by Procurement Services. Key milestones for delivery of the Framework are:

• Q1 2007- approvals sought for Framework approach
• Q2 2007- issue of OJEU notice and ITT
• Q3 2007- evaluation of responses and approvals sought for contracts
• Q4 2007- implementation

8. A Prior Information Notice has been issued for the building security requirement. This is a merely to inform the market. It does not oblige the MPS to tender the requirement but instead reduces the OJEU sourcing stage for this Framework from 77 to 51 days. So far 40 companies have expressed an interest in this requirement. However it is thought that few of these will be able to match the full MPS requirement.

9. The framework approach chosen is similar to that used by the Development Services Framework.

10. Once operational, it is anticipated that the framework will be managed by the DoI. The framework will be monitored for supplier performance, spending per supplier, overall spending and other criteria. Contracts issued through the framework will be subject to the same procurement requirements for MPS/MPA scrutiny and approval as apply to all non-framework contracts.

Abbreviations

ITT

Invitation To Tender

MPA

Metropolitan Police Authority

MPS

Metropolitan Police Service

OJEU

Official Journal of the European Union

SoR

Statement of Requirements

TUPE

Transfer of Undertakings (Protection of Employment) Regulations

C. Legal implications

No legal implications are anticipated. Standard MPS contract terms and conditions will apply.

D. Race and equality impact

There are no direct equality and diversity implications. The contract will require adherence to MPS policies on race and equality.

E. Financial implications

1. The framework does not of itself spend any money or provide any guarantee of work to those companies who are appointed members. However if certain maintenance work on existing or new installations is undertaken through the framework then TUPE costs may be incurred due to the transfer of staff from current maintenance suppliers.

2. The framework is targeted to begin operation in November 2007 and will continue for four years.

3. A ceiling value for the sum of all contracts let through the framework has been set at £34.3m. The ceiling value was calculated from estimated MPS fit out costs in support of the Estate Strategy and projected on-going costs.

F. Background papers

None

G. Contact details

Report author: Colin Walsh, Technology Estate Workstream, MPS.

For more information contact:

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

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