Purpose

This report requests the
approval to proceed with the final year of an optional 2-year (1+1
years) extension to the Security contract for services related to
physical guarding, reference 211018. The original term of the
contract was for a 3-year fixed term with the option to extend for
a further 2-year (1+1 years) term. The contract is inclusive of an
uplift to the London Living Wage (LLW) and CPI (Consumer Price
Index) in line with the current rates. 
 
The provider for this service
is Blue 9 Security Limited (“Blue 9
Security”).
 
The Tender for security
services was conducted and moderated in September 2021 with a
commencement date of 14th September
2021. Blue 9 Security
were awarded the Security contract for a total 5-year term with an
initial 3-year term with the option to extend for a further 2-years
(1+1 years) subject to performance review, value of contract and
budget.
 
The original annual cost for
Security Services was £1,314,015 per annum with a total spend
for the 5-year full term expected to be £6,570,075.
Compliance with the London Living Wage was detailed within the
contract from the outset. However, in order to meet the unforeseen
uplift in London Living Wage, it has been necessary to include
indexing to the Consumer Price Index (CPI), to be documented in the
form of a Deed of Variation to the initial contract.
 
The current expiry date for the
first year of the optional 2-year extension (1+1 years) is
13th September 2025. The second optional year (of the 2
available years) will lengthen the contract giving a new expiry
date of 13th September 2026.
 
In addition, other departments
have opted to use the services of the Security Contract on an
additional ad hoc basis. The annual value of the contract is
currently at £1,660,311. The new annual value including
compliance with the London Living Wage (LLW) and the Consumer Price
Index (CPI) is £1,661,204.
 
The increase of £892 has
been budgeted for within the Council Managed Estates Budget. The
full breakdown of service costs across the contract has been
detailed within section 5 of this report. The breakdown will
identify cost reductions in some areas due to service reductions
and increases in other areas due to LLW and CPI uplifts.