Procurement of FM Services

Transcription

1 Next Generation FM Services Procurement of FM Services 22nd June 2017 Presented by Mark French

2 Procurement of FM Services Introducing Crown Commercial Service (CCS) We re one of the biggest public procurement organisations in Europe and an Executive Agency of the Cabinet Office. We lead on developing and implementing the UK s public sector procurement policy and delivering government s commercial policy priorities. We help organisations across the whole of the public sector find the right commercial solutions for around 12 billion of spend each year. Commercial expertise great value deals significant savings 60% SME suppliers bulk buying power We want to help our customers save 2 billion between 2016 and 2020

3 CCS Operating Scale Procurement of FM Services

4 Procurement of FM Services CCS Strategy Strengthening the UK economy through effective policy delivery CCS Maximising commercial benefits Focusing on our customers

5 Procurement of FM Services CCS Procurement Policy The commercial policy priorities we currently support include: 1/3 of government spend to go to SMEs by 2022 Increasing the transparency of contract information Implementing the prompt payment policy across the supply chain 3 million new apprenticeships by 2020

6 Public sector must transform whilst continuing to deliver critical services The Government Hubs Programme will reduce the government estate from around 800 to 200 buildings by courts closed in 2011 further 86 will be closed by the end of the year 23 million A&E attendances in 15/16 up 22% since 2006 Universal Credit replaces the plethora of benefits into a single monthly payment Installing 53 million smart meters to allow gas and electricity usage to be monitored Estimated 5.6 million fraud and computer misuse crimes last year 500,000 more school pupils since 2010 Investing 1.9 billion to become one of the most digitally advanced tax administrations in the world 7 new metro mayors with budget and powers to invest in local economies

7 Procurement of FM Services CCS Buildings Strategy To facilitate a Cradle to Grave capability to customers for their property and FM requirements HOW CCS BUILDINGS FRAMEWORKS SUPPORT THE GOVERNMENT PROPERTY LIFECYCLE Fit-out Project Management & Full Design Team Services Facilities Management Services CAFM / Assurance To utilise Buildings Pillar frameworks to support customers in achieving the targets set out in the Government Construction Strategy Building Materials Modular Buildings Construction Furniture Utilities Fuels Linen & Laundry To increase efficiencies, reduce costs and promote better buying behaviours. Unlock new savings opportunities and deliver commercial benefits. Estates Professional Services

8 Procurement of FM Services CCS Buildings Strategy To exploit market capability, knowledge, technology and innovation To support the delivery of the Government s property reform agenda To be the provider of choice across the public sector To maximise Wider Public Sector growth opportunity

9 Procurement of FM Services Overview of current FM Services Framework (RM1056)

10 Procurement of FM Services Summary RM1056 went live on 28 th July 2015 and is broken down into three lots: Lot 1: Total Facilities Management consists of a multi-supplier lot incorporating all facilities management services from maintenance and building fabric repairs to security, cleaning, catering and waste management, all delivered by a single supplier. Lot 2: Hard Facilities Management consists of a multi-supplier lot incorporating a range of hard services including maintenance and building fabric repairs, mechanical and electrical services and landscaping. Lot 3: Soft Facilities Management consists of a multi-supplier lot incorporating a range of soft services including catering, cleaning, security and waste management which support the day to day operation of a property. There are ten suppliers on each lot, with some suppliers across multiple lots 19 suppliers in total

11 Procurement of FM Services Spend & Benefits Maximum allowable spend through framework is 4.08bn 34 separate contracts awarded to date valued 311m Current estimate of turnover from current pipeline is a further 2.8bn Average savings circa 20% Improvements & Lessons Learned Changes to TUPE approach were required TUPE assessment for business cases were too optimistic Cost model revised on 4 occasions to simplify for customers and suppliers All standard documents have been revised so that customers to take advantage of all CCS learning Participation issues for low value business Poor quality asset information

12 Procurement of FM Services RM3830 Project Strategy and Supplier Engagement

13 Procurement of FM Services The requirement for a new FM Framework Current framework expires in July Therefore a need to have a replacement model in place in advance of the expiry date. The work starts now! Current arrangement does not cover all services required by all departments The current model restricts buying options of certain customer organisations The TFM/Hard FM/ Soft FM lot structure is rigid and doesn t allow, for example, a customer who requires a predominantly Soft FM contract, for the supplier to provide any particular Hard FM services that may also be needed. Collaboration seen as vital to ensuring future arrangements are fit for all department needs and support strategic growth objectives Government increasingly been seen as not a customer of choice by the market FM a significant spend area in the public sector (circa 3bn per annum) and this presents an opportunity to support and facilitate efficient buying through centralised vehicles across Government ( 16bn total FM spend in Public Sector)

14 Procurement of FM Services Outline objectives Build on the performance and successes delivered by RM1056 Real collaboration to ensure a model which meets and leverages market capabilities Ensure diverse needs of Central Government and Wider Public Sector Customers met Comprehensive service offering across all FM services inclusive of Hard and Soft Facilities Management Requirements Security Requirements CAFM / Integrator Requirements Linen & Laundry Requirements Defence specific FM requirements where needed Fit for purpose commercial model (pricing, T&C s) suitable for large and small packages Support to Government's relevant policy agenda Establish real linkages with other CCS Frameworks, eg Energy, Re-fit, FF&E etc. Improve / establish common asset hierarchies Improve the handling of TUPE data transfer to facilitate more accurate outturn pricing

15 Outline objectives Procurement of FM Services Framework to cover all CG Depts by default unless collaboration cannot be achieved Simplification* - Pricing, Award Process - move to self service model (*where appropriate) Potential for Direct Award for lower value banded services Innovation & value-add - allow for supplier innovation to be incorporated at Call Off stage. Include social value considerations into evaluation models (SME s, apprentices, growth) Deliver and share coherent, transparent and consistent Management Information; Exploit market capability and knowledge - SME s & large vendors Improve data transparency to enable robust decision making and performance/contract management; and Develop and apply common standards to enable benchmarking and consistency of data.

16 Procurement of FM Services Category Insights Category Actions Current centralised deals are driving significant value Customer trends indicate some movement to using integrators to support their Property needs Limited opportunity to meet enterprise and growth agenda with current deals Lower value needs are not adequately met by the current CCS offer CCS products cannot deal with the most complex FM requirements eg, MoD, MoJ NEC3 contract has varied feedback amongst customers due to cost and complexity of management Some Specialist suppliers locked out of current arrangements. Need some sector specific service lots Continued focus from CCS in the Workplace category is required to extract further value Current CAFM deal to be replaced by a full Integrator solution for customers Accelerate the replacement of current CCS products for FM Consider the applicability of regional and national delivery capability High / Low value FM procurement to be simplified with new pricing model Terms to be revisited with Market & Customers Consideration of security as a unique lot Potential Movement from Hand / Soft / Total to a bundled services offer Incorporate Linen & Laundry specialist services into new offer

17 DRAFT Lot Structure National FM Services 8Bn- 11Bn (includes security, catering, linen & laundry as integrated service) Facilities Management Integrator Services 25M- 75M Security 0-1Bn Linen & Laundry 40M- 50M Catering 0M- 250M Suppliers - Minimum core service provision - Crown Marketplace Enabled - matrix driven approach to final tender list geographic, non core services, capability - Collaboration between suppliers - 5 Suppliers - Full FM Integrator - 10 Suppliers - Core Guarding Services - Non Core Tech Services - 10 Suppliers - Collection, Wash, Finish of Laundry - Generic & NHS specialist items - 20 Suppliers - Standard & Concession Contract

18 FM Marketplace Requirements FM Bundled service provision including hard and soft services Mandatory core services (evaluated & priced) with optional non core delivery for more specialist requirements Manned guarding, catering & Linen & Laundry as non core service (e.g. where a single integrated provider is required) Simplified pricing structures to support ease of customer access Matrix driven approach will sift to a manageable tender list Crown Marketplace is the enabling platform Geographical Capability (County borders) Non Core / Non Standard Service Provision Estimated Service Value (ranges) Terms and Conditions Direct Award Minimum Threshold

19 FM Marketplace Example (simplified) Matrix System SME 1 SME 2 SME 3 SME 4 Large 5 Large 6 Suppliers 3,5,6,7 invited to compete for the work (non-core services ensures further competition required) Large 7 Large 8 Large 9 Suppliers not shown

20 Scope of Services Security Specialist security provision to support access to specialist providers Service to include manned guarding as core service Security technology service provision as non core service Integrator Full Integrator Model Linen & Laundry Collection, wash, finish and return of a wide range of generic and health items, including bedding, towels, clothing, theatre wear, uniforms. Catering Provision of standalone catering service Standard and concession contracts

21 Pricing Methodology Service Type Building Type Location T&C s Output Cleaning (NIA) Warehouse Greater London Complex / Non Complex Bespoke Rate Principles Comprehensive Threshold per Building (non core) - Level set by Customer Priced Core Services held at Framework on core Unit of Measure for baselined standard service. Service Module based on Customer Type (NHS, School, CG) Non Standard Services priced at Call Off based on deviation from standard pricing Non Core priced at Call Off Contract uplifts to be set at Framework (admin / mgt) All service rates rolled up including materials and consumables Direct Delivery / Subcontract same rate Allows for Direct Award of Core Services Lower threshold (DA) to be determined at bid Suppliers must accept over this at risk of exclusion

22 Feedback suggests current model with simplification is appropriate - 6% profit at risk, 10 KPI s, various sub measures Review of current model to take place prior to final decision Customer self build of KPI model based on CCS templates KPI s & Performance

23 TUPE & Mobilisation TUPE TUPE liabilities based on a TUPE premium per individual which will value the variance from standard rates and apply to the annual cost True up post Award based on actuals transferred and inaccuracies Cost of Change to be included in Year 1 Mobilisation Mobilisation to be costed and funded in Year 1

24 CCS Service Offering Service Offering Strategic advice & guidance on technical build Procurement support to Customers CCS procurement managed service offer to be defined with CG Customers market evidence on high quality procurement operations from CCS Procurement support for all WPS Customers

25 Evaluation Basis Price Core Services Quality Social Value Balanced Scorecard Value Add / Innovation Evaluation

26 Outline timescales Next Generation FM Services

27 Questions? Procurement of FM Services