MEETING Finance and Procurement Panel AGENDA ITEM 8 MEETING DATE SUBJECT REPORT 24 May 2004 DOCUMENT NUMBER Integrated Clothing Project Award of PFI Credits (18.5.04) by Head of Procurement FPP 162 Summary This report informs the Panel of the award of PFI Credits to support the Integrated Clothing Project (ICP) and provides an update on the Project progress. RECOMMENDATION That the report be received. \\file01\ceautha\lfepa\panels\finance\web pages\040524\p-fp162.rtf 1 Page 1 of 6
BACKGROUND 1. Progress on the Integrated Clothing Project (ICP) was reported to the Panel at its last meeting on 1 March 2004. (FPP 154). At the time of reporting a long list of potential bidders for the tender for the national Project had been drawn up by the Head of Procurement in consultation with external advisers and other authorities who had offered support. 2. At the time of the previous report, a Private Finance Initiative Bid on behalf of the Project had been submitted on behalf of those brigades that had expressed an interest in being party to a Private Finance Initiative (PFI) Bid for the Personal Protective Equipment (PPE) element of the Project, and the outcome was awaited. Finance Issues Private Finance Initiative (PFI) 3. The Panel will be pleased to note that on 24 March 2004 the Minister for Local and Regional Government wrote to the Commissioner stating that the Integrated Clothing Project would be taken forward to the next stage for PFI funding. At the same time, the Office of the Deputy Prime Minister (ODPM) issued a News Release on Private Finance Initiative funding for the Fire Service which stated that the Minister would support the Integrated Clothing Project. 4. The Minister stated that he believed the Project to be ground breaking. The ODPM News Release praised the Project for the way in which it addresses diversity in the Fire Service and the needs of women firefighters. It also highlighted the benefits of joint working between brigades, efficient procurement and the creation of a national image for the fire service. The text of the News Release is attached at Appendix A. 5. An Outline Business Case has been drawn up for presentation to the Treasury s Policy and Review Group (PRG) on 10 August 2004. Procurement process 6. Since the last Report to the Panel meeting on 1 March 2004, the procurement process has progressed. An Industry Briefing Session was held on 18 March 2004 at the Headquarters of Warwickshire Fire and Rescue Service in Leamington Spa. Representatives of the ten short-listed bidders attended the briefing. Presentations were given by the Head of Procurement, the Chair of the National Board and the Project Manager. Draft output specifications were sent out to the bidders together with their invitations to the Briefing. 7. The Invitation to Negotiate Stage 1 (ITN 1) documentation has been finalised and approved by the National ICP Project Board. This will be issued to bidders once approval to the OBC has been received from the PRG. This approval from HM Treasury prior to progression with the procurement is vital to secure the PFI credits. Failure to comply will subject the bid to an unacceptably high risk of failure, consequently the project has been subjected to a minimum delay of 12 weeks whilst this approval is sought. 8. As stated the procurement process will only be able to re-commence following PRG approval. However, to avoid any further unnecessary delay, discussions are occurring with ODPM to gain agreement in principle to proceed with a design briefing day without compromising the PFI Bid. 9. The briefing day will provide an opportunity for industry to present their initial design concepts for comment and observations prior to formal submission of final designs and sample garments within the procurement process. This briefing day will also ensure that industry is fully appraised and is actively considering equality and diversity issues in a National Uniform Solution. Members will be aware of industry s concerns regarding competition and market share. The projects response and safeguards to these were set out in FPP 154. Conclusion 10. The Panel is asked to receive the report. \\file01\ceautha\lfepa\panels\finance\web pages\040524\p-fp162.rtf 2 Page 2 of 6
APPENDIX A Text of News Release from the Office of the Deputy Prime Minister 24 March 04 MINISTER ANNOUNCES A FURTHER 100m INVESTMENT FOR FIRE AND RESCUE SERVICES Additional investment of 100 million, under the Private Finance Initiative, for two projects proposed by Fire and Rescue Service Authorities was announced today by the Minister of State for Local and Regional Government, Nick Raynsford. The Minister gave his support for the London Fire and Emergency Planning Authority's proposal for letting a contract for the supply of protective and other clothing. This is designed to benefit 30 brigades across the country. He also said that he was pleased to support the proposals put forward by the North East Fire and Rescue Services for community fire stations, a key theme of the Fire and Rescue Services Bill which is currently progressing through Parliament, and a Community Lifeskills Centre. Nick Raynsford said: "We have had a very good response from Fire and Rescue Service Authorities putting forward ideas for Private Finance Initiative projects. We had some very innovative proposals. "The two we have selected should both provide wider benefits at a regional and a national level and I look forward to seeing them progress." \\file01\ceautha\lfepa\panels\finance\web pages\040524\p-fp162.rtf 3 Page 3 of 6
The London clothing project will provide protective clothing to a high standard for fire fighters, equipping them to deal with the varied emergency situations they face in today's world. The kit will be tailored in a way so as not to form a barrier to women. This is important as part of our drive to increase diversity in the Service, including the recruitment of more black and ethnic minority fire fighters. The Clothing Project will help create a national identity for the Fire and Rescue Service by establishing a recognisable and uniform design and represents a more efficient way for the Service to procure its protective clothing, something that has been recommended in past reviews. Furthermore, the project highlights a greater collaboration of working between brigades, a key message of the Fire and Rescue Service National Framework. The North East Fire and Rescue Services proposals will provide four new community fire stations as well as a Community Lifeskills Centre to further Community Fire Safety throughout the region. This will include two relocated community fire stations for Durham and Darlington F&RS Authority, a new station for Tyne and Wear F&RS Authority, and three stations into one for Northumberland F&RS Authority. Note for Editors 1. Over the past five years more than 200m has been awarded to the Fire and Rescue Service under the Private Finance Initiative. This has led to: new fire stations, training centres and headquarters in North Yorkshire, Cornwall, Lancashire and Tyne & Wear; a divisional and community fire station in Greater Manchester; a new joint training centre for Avon, Somerset and Gloucestershire; new vehicles and equipment are also being provided in London. Work is also in progress towards new facilities in South Wales, Dorset, Cornwall, Essex and Suffolk. 2. Fire and Rescue Service authorities were invited on 3 December 2003 to submit indicative bids by 30 January 2004 for this fourth PFI round. The bids were considered by an assessment panel which included the Local Government Association body, 4ps. The panel took into account the criteria set in the invitation to the authorities. 3. A PFI credit is intended to assist authorities in meeting the payments for the capital investment made by the private sector. The next stage for the two authorities will be to devise Outline Business Cases which will need to demonstrate that the scheme is affordable and that a PFI solution would offer value for money. On approval by Ministers and the interdepartmental Project Review Group, the amount of PFI credits allocated to each scheme will be confirmed. It will then be for the project team to invite tenders, select a preferred bidder and negotiate the terms of the contract. \\file01\ceautha\lfepa\panels\finance\web pages\040524\p-fp162.rtf 4 Page 4 of 6
4. Feedback will be given to those authorities whose bids were not selected on this occasion. Press Enquires: 020 7944 3042 Out of Hours: 020 7944 5945 E-mail: press.office@odpm.gov.uk Public Enquiries: 020 7944 4400 Office of the Deputy Prime Minister Website: http://www.odpm.gov.uk \\file01\ceautha\lfepa\panels\finance\web pages\040524\p-fp162.rtf 5 Page 5 of 6
LOCAL GOVERNMENT (ACCESS TO INFORMATION) ACT 1985 List of background documents as stated in the report Proper Officer: Terry Brewer, Head of Procurement Contact Officer: Steve Taylor, Project Manager, Integrated Clothing Project 020 7587 6258 e-mail: steve.taylor@london-fire.gov.uk FREEDOM OF INFORMATION ACT 2000 LFEPA Publication Scheme This document appears in the publication scheme under: It also appears in the publication scheme under: Information Access Team Contact: Category: Topic: Class: Category: Topic: Class: Management arrangements and decision making Authority, committee and panel meetings Panel meetings infoaccess@london-fire.gov.uk 020 7587 6275 P-FP 162 P-FP162 p-fp 162 p-fp 162 \\file01\ceautha\lfepa\panels\finance\web pages\040524\p-fp162.rtf6 Page 6 of 6