IV! 0 P /3 C; The above request has my approval. REQUEST FOR DMPC DECISION DMPCD Procurement Request National Uniform Managed Service (NUMS)

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1 IV! 0 P /3 C; REQUEST FOR DMPC DECISION DMPCD Title: Procurement Request National Uniform Managed Service (NUMS) Executive Summary: This paper requests the approval to initiate procurement for the engagement of a national managed service provider for the supply of uniforms. Forty three police forces and other British Transport Police, UK Border Agency, Civil Nuclear Constabulary and MoD Police have agreed to participate. The proposal is for an initial 7 year contract term, with potential to extend by up to 3 years. The estimated national value of the service including supply of uniform, value of officer abstraction, logistics, etc. over a ten year period is estimated at 3.7bn. The equivalent value for MOPAC is 700m. Recommendation: The DMPC is asked to approve the initiation of procurement action for the engagement of a national managed service provider for the supply of uniforms, over a potential ten year period, at a value of up to 3.7bn. Deputy Mayor for Policing and Crime I confirm I have considered whether or not I have any personal or prejudicial interest in this matter and take the proposed decision in compliance with the Code of Conduct for elected Members of the Authority. Any such interests are recorded below. The above request has my approval. Signature Date /i / i 3 DMPCD v3 June 232

2 4- PART I - NON-CONFIDENTIAL FACTS AND ADVICE TO THE DMPC Decision required supporting report. Introduction and background. M part of the on-going process of managing contracts and tendering/re-tendering for goods and services Procurement Services identifies contracts which require DMPC approval for either extension or to initiate contract action to tender or re-tender for goods or services. 2. Issues for consideration 2. There is a significant number of product lines associated with police uniforms, 345 within MPS and estimated at several thousand nationally, supplied to an estimated national 60,000 officers and staff. Significant opportunities have been identified to rationalise product lines and improve contract management and the process and practices for uniform provision, through consolidation, standardisation and leverage. 2.2 The base cost of uniform for the MPS is estimated at LiOm per annum, 53m pa. nationally. A factor of 6 has been applied to these base costs (based on Home Office research) of the cost of abstraction, logistics, storage and maintenance. This results in potential annual costs of 873m, nationally and 0Dm for MPS. Over a ten year period the MPS element of any NUMS contract would be 00Dm, nationally 3.7bn. 2.3 Appendix sets out further detail of this request. 3. Financial Comments 3. The cost of the proposed national contract is estimated at up to 3.7bn over a 0 year period. The MPS element would be DOOm. 4. Legal Comments 4. Procurement Services has confirmed that the procurement process will be conducted in compliance with EU/UK procurement law and the MOPAC governance framework. Legal compliance through DLS will be sought before contract award. 5. Equality Comments 5. There are no direct equality or diversity implications arising from this request 6. Background/supporting papers 6. None DMPCD v3 June 202 2

3 Public access to information Information in this form is subject to the Freedom of Information Act 2000 (FOIA) and other legislation. Part of this form will be made available on the MOPAC website within working day of approval. Any facts/advice/recommendations that should not be made automatically available on request should not be included in Part but instead on the separate Part 2 form. Deferment is only applicable where release before that date would compromise the implementation of the decision being approved. Is the publication of this form to be deferred? NO If yes, for what reason: Until what date (if known): Is there a part 2 form Yes If yes, for what reason: commercially confidential ORIGINATING OFFICER DECLARATION: Head of Unit: Annabel Cowell has reviewed the request and is satisfied it is correct and consistent with the MOPAC s plans and priorities. Tick to confirm statement (V) Legal Advice: The Legal team have been consulted on this proposal. I Financial Advice: The Chief Finance Officer has been consulted on this proposal. / Equalities Advice: The Equality and Diversity team have been consulted on this proposal on behalf of the Head of Equalities and Diversity. / OFFICER APPROVAL Chief Operating Officer I have been consulted about the proposal and confirm that financial, legal and equalities advice has been taken into account in the preparation of this report. submitted to the Deputy Mayor for Policing and Crime. I am satisfied that this is an appropriate request to be Signature,_,; z 7 Date.2-a. ot..20? DMPCD v3 June 202 3

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5 NATIONAL UNIFORM MANAGED SERVICES - NUMS Appendix Report by Director of Procurement on behalf of the Commissioner Executive Summary Procurement Services seek approval to initiate the procurement of a contract for the National Uniform Managed Service (NUMS). The NUMS initiative was instigated by MPS Procurement Services. MPS Clothing Board approved a request from the Association of Chief Police Officers (ACPO), the Strategic Police Procurement Board (SPPB) and the Home Office Collaborative Police Procurement Programme Board (CPPPB), for the Me to lead this National and iconic procurement. The NUMS project team have since gained agreement to participate from forty three forces along with the British Transport Police, UK Border Agency, Civil Nuclear Constabulary and the Ministry of Defence Police. The estimated value for this MPS element of the NUMS over the proposed 0 year term is 00Cm, and the National arrangement is estimated at 3.7bn over the proposed ten year term. The figures have been extrapolated using HO research to derive an average product/service ratio that states for every direct spend on uniform products, there is a further 6 incurred in relation to providing the service, including but not limited to abstraction, administration, storages and distribution. The proposed term is seven years with an additional option to extend for a further thirty-six month period in annual increments. Over that contract term, this change to NUMS is expected to reduce the total spend by 6% which, based on the estimated contract value of 00Cm (including cost of service provision) over 0 years, equates to 2m for MPS and 597m Nationally. It is not possible at this stage to estimate the cashable element of this. The procurement process will be conducted in compliance with EU/UK procurement law, and specifically adopting the restricted process to tender a single competition for the NUMS. The managed service will be provided under a single contract which integrates the provision of ten component Service Lines. Opportunities for Small/Medium Enterprises (SME) will be managed through the NUMS. A. RECOMMENDATIONS. To approve the initiation of procurement action to compete the NUMS contract. The competition will tender a contract for a period of seven years with an optional thirty-six month extension in annual increments. B. SUPPORTING INFORMATION. The Metropolitan Police Service (MPS) currently manages approximately 345 product lines; 3,000 Stock keeping units (SKUs), across 67 different roles for over 30,000 Officers and Staff. The National scale and fragmentation is even greater with circa 60,000 Officers and Staff with several thousand product lines. 2, The current predominant perception of uniform provision is that it is not fit-for-purpose. It does not provide the level of service end-users require and it does not represent value-for-money to the Public. Notwithstanding the fragmentation of contract management on a National level, even at a local level there are opportunities to improve the products (where necessary), rationalise the ranges and re-engineer the processes and practices surrounding their provision. 3. The Police Service are not alone, most forces and other uniformed services such as the London Fire Brigade (LfB); United Kingdom Border Agency (UKBA); Ministry of Justice (MoJ) face similar issues.

6 Appendix 4. On face value the cost of uniform to the MPS is relatively low at circa LlOm per annum, excluding cost of stock. However, the impact of uniform is extremely high if we take into consideration officer abstraction, image and the cost of logistics, the total cost of uniform provision is far greater. The Home Office Collaborative Police Procurement Programme (CPPP) estimates that for every pound spent on uniform a further 6 to 7 is spent to provision it. 5. Through consultation with various users and the market the NUMS was designed to provide a single National solution that will provide an end-to-end supply chain solution that enables greater consolidation, standardisation and leverage. NUMS will provide a consistent uninterrupted supply of a wide range of diverse Uniform products through professionally controlled, socially responsible, ethical and environmentally sustainable supply chains. 6. A National solution of this scale requires consistency and significant upfront investment by both the supplier and the HO through the mobilisation, transition and transformation periods. Allowing the provider to achieve the right balance between the savings that will be delivered and the upfront investment required to implement the solution requires a term of the order proposed. C OTHER ORGANISATIONAL & COMMUNITY IMPLICATIONS Equality and Diversity Impact. The Manage Service Provider will be required to ensure services support and adhere to the MPS Environmental Policy, MPS Corporate Social Responsibility Strategy and the MPS How We Police Report 20. Bidders will be required to provide an outline description of how this will be achieved and their solutions will be evaluated as part of the tender process. 2. The Managed Service model supports the Mayor s commitment to actively engage small, medium and large businesses which support the Responsible Procurement objectives for competitive and innovative solutions. 3. In order that the project maximises the environmental agenda, we have engaged with WRAP (Waste and Resources Action Plan) which is a Government-funded organisation with current work streams to reduce the amount of waste going to landfill, The Project Team has commissioned research, which is currently being conducted by WRAP, in relation to several points of the procurement exercise (such as uniform leasing) which will also include corporate social responsibility, innovative recycling, up-cycling and an end-of-life cycle management initiative. Financial Implications. In accordance with Section 8.4 of the MOPAC Scheme of Delegation, the Deputy Mayor must approve all requests to go out to tender for contracts over 0.5m. The costs associated with the contract are set out in Part 2 of this report and are covered by the budgets set out in the current Business Plan. Financial approval will be reassessed at the contract award stage. Legal Implications. There are no legal implications at this stage. Procurement Services has confirmed that the procurement process will be conducted in compliance with EU/UK procurement law, The route to market will be restricted process. Legal advice through DLS will be sought before contract award to ensure compliance. Background/supporting papers Report author: Lee Tribe, Director of Procurement