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Stage 2 of the safer neighbourhoods property programme - contract award

Report: 13
Date: 11 December 2007
By: Director of Strategic Finance on behalf of the Commissioner

Summary

Following successful formal tender action authority is sought to award contracts for the delivery of the 2nd stage of the Safer Neighbourhoods Property Programme.

A. Recommendations

Members are asked to note and approve:-

1. The process used to invite tenders for the 3 separate contracts and the results of this process.

2. The award of contracts to the recommended bidders.

3. The Governance and reporting process proposed for the management of these contracts.

B. Supporting information

1. The 2nd Stage of the Safer Neighbourhoods (SN2) Programme will consist of Bases for approximately 170 SN teams in approximately 124 separate locations.

2. The Finance Committee on 20 September 2007 approved the proposed procurement of 3 contracts for Safer Neighbourhoods Stage 2 utilising the following framework arrangements:

  • Acquisition Specialist – OGC Estates Professional Services Framework
  • Employers Agent / Cost Consultant – OGC Project Management & Full Design Team Services Framework
  • Design (Architect & Engineers), Develop & Construct Contractor – SECE Major Contractors Framework

3. Separate tender action was launched for each of these packages on 16 October 2007 and the details of the process for each lot is listed below.

4. Acquisition Specialist – OGC Estates Professional Services

  • All 7 Contractors qualified were invited to express interest and did so.
  • 7 Tenders were invited
  • 5 Tenders were returned
  • Evaluation was based on the most economically advantageous tender criteria
  • An extract from the full tender report and the proposed details of the proposed award is shown in exempt Appendix 1

5. Employers Agent / Cost Consultant – OGC Project Management & Full Design Team Services Framework

  • All 5 Contractors qualified were invited to express interest and 3 did so.
  • 3 Tenders were invited
  • 2 Tenders were returned – fully compliant bids together with some alternative proposals were received.
  • Evaluation was based on the most economically advantageous tender criteria.
  • An extract from the full tender report and the proposed details of the proposed award is contained in exempt Appendix 2

6. Develop & Construct Contractor (including Design) – SECE (South East Centre of Excellence) Major Contractors Framework

  • All 8 Framework Contractors were invited to express interest.
  • 4 Contractors expressed interest & received invitations to tender.
  • 1 Contractor withdrew during tender period
  • 3 fully compliant tenders were received
  • Management & Quality assessment was carried out by Property Services, Construction Division personnel and counted for 70% of the overall marking.
  • Financial assessment was carried out by Property Services Commercial Operations (Procurement) personnel and counted for 30% of the overall marking.
  • Interviews were held on 14th November 2007 with all 3 bidders to confirm their management & quality marking.
  • Total marks achieved fell in the range of 84 - 96 of a possible 100
  • The award of this contract is on the basis of a call-off contract to provide services as required to develop schemes through various stages (feasibility, detailed design, procurement & construction) and as such carries no specific commitment in terms of volume of work, but agreed rates for the various sizes of bases envisaged for each of the stages. These arrangements have been reviewed and approved by MPS legal representatives.
  • The SECE arrangements envisage a 2 stage tendering process, and in the 2nd stage the contractor procures sub-contract packages for all the works elements. The detailed strategy for how this will be achieved for SN2 will be developed by the appointed contractor and Employers Agent and approved by the operational sub-group, but may include selecting sub-contractors for a number of projects to derive the benefit of volume discounts.
  • An extract from the Full Tender Report , which has been approved by Procurement Services, and the proposed award is shown in exempt Appendix 3.

7. The Governance Structure required for the administration of this stage of the project is being developed with TPHQ and MPA Officers, and will consist of a Steering Group and 2 sub-groups, 1 dealing with property acquisitions and the other with design and construction of the bases. The MPA will be represented on the Steering Group which will receive regular updates from the sub-groups. It is proposed that the Steering Group provides reports every 6 months to MPA Finance committee on progress and budgetary issues. It is envisaged that all further committal will be within the delegated authority of the Director of Strategic Finance (i.e. below £1m) and that delegated authority levels will be agreed for each of the sub-groups enabling them to commit expenditure within agreed budgetary levels either for property acquisition or construction contracts. It is anticipated that the Project Director within Property Services will have the authority to place call-off orders with the appointed Contractor at the tendered rates for the feasibility, design and procurement stages of the projects and to authorise acquisitions up to a certain value.

8. The anticipated programme for these appointments is shown below in general terms:

  • Appoint Contractors / Advisers – December 2007
  • Mobilise first Stage 2A Projects (those already designed under Stage 1) – February 2008
  • Mobilise Stage 2B Projects (those partly acquired / designed during Stage 1) - May 2008
  • Mobilise “new” Stage 2C projects – August 2008 and on.
  • The identification and procurement of sites is subject to market availability and may prove more challenging as we get to the end of the programme.
  • The current target for completion of Stage 2C is December 2009
  • At some stage of the programme we will need to accept that some locations / bases are undeliverable and outstanding permanent plans be deferred until suitable properties become available. At this time Stage 2 will be concluded and any outstanding locations will be transferred to the main property programme. Provision has been made for this within the contracts and it is anticipated that this decision will be made in summer / autumn 2009, with appropriate notices then being given.

Environmental implications

9 The anticipated environmental implications are set out in the table below

Environmental implications
  Higher Lower No impact Mitigation/ management of any higher impact
Level of energy use and associated carbon dioxide emissions   X   Buildings equipped with modern efficient M&E installations and to be insulated to current building regulation standards where possible.
Level of water consumption   X   Using modern equipment and plant, together with potential re-use of ‘grey’ water.
Level of waste generation/waste requiring disposal   X   Recycling initiatives to be commenced after opening new facilities.
Level of travel and transport and associated emissions     X No additional staff commuter parking. Locations determined by availability of public transport
Raw material use and finite resources (use of recycled materials and sustainable alternatives)   X   The scheme designs will seek to, within economic bounds, maximise the use of recycled material and sustainable resources in line with best practice / regulation.

Table 1: Environmental implications of the 2nd stage of the Safer Neighbourhoods Property Programme.

Abbreviations:

BOCU
Borough Operational Command Unit
CDM
Construction Design Management
DLS
Department of Legal Services
MPA
Metropolitan Police Authority
MPS
Metropolitan Police Service
OGC
Office of Government Commerce
PSD
Property Services Department
SECE
South East Centre of Excellence
SN
Safer Neighbourhood
TP
Territorial Police
TPHQ
Territorial Police Headquarters
OJEU
Official Journal of European Union

C. Race and equality impact

1. Property Services will promote equal opportunities, amongst diverse communities and across its supply chain and will undertake procurement in line with the MPA’s Equal Opportunities Policies.

2. Design and related issues will take in to account both property related issues and locations (via the local BOCU (TP) established liaison and partnerships in place).

D. Financial implications

1. A detailed analysis of the financial implications of this paper is contained in Appendix 4 (Exempt)

2. Subsequent refinement to the treatment of costs as either Revenue or Capital may require Stage 2 items to be revenue funded to a greater degree. The impact of this will be reported to the Finance Committee as part of the regular reporting on this programme.

3. The process recommended will impact on the phasing of expenditure in capital programmes as approved by the MPA and Mayor. This will be reflected in future monitoring reports and the capital / revenue budget submissions for the planning period 2008/09 – 2011/12.

F. Contact details

Report author: Alan Croney, Director of Property Services, MPS

For more information contact:

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

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