Facilities Management Shared Learning Seminar

How the National Procurement Service

Can Help Welsh public services to improve their

Facilities Management

1st May 2014

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Overview of the

National Procurement Service

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The National Procurement Service • Launched 21 November 2013

• Independent Organisation- hosted by WG

• Pan Public Sector

• “For the public sector, of the public sector”

• All Wales contracts and frameworks available to 76 member

organisations

• Common and repetitive spend (CaRS)

Interaction

Value Wales

Policy standards, monitoring, supporting

capability development

National Procurement

Service

Provision of contracts & demand

management advice

Wider public sector including Welsh Government

Feedback

Governance

Diagram of NPS Accountability

Public Service

Leadership Group

PSLG Procurement

Board

National

Procurement Service

Board

Director NPS – Chairs NPS

Delivery Board

Welsh

Ministers

Welsh

Government

Officials

Stronger

accountability

for members of

Procurement

Board to report

sector progress

The National Procurement Service: So Far….

• Stakeholder engagement across the Sectors

• Business continuity on existing Value Wales frameworks

• Production of Category and Sector savings plans

• Supplier engagement and SME Development including Community

Benefits

• Procurement/ tenders underway across the categories

• Recruitment: Phase two

The National Procurement Service: Structure/Roles • NPS is created based on a Category Management approach. • 7 key categories:

• Construction Trades, Materials & FM (Claire Powell) • Corporate Services & Utilities (Sam Perkins) • Fleet (Diana Francis) • IT (Richard Sharp) • People Services (Sheila Powell) • Professional Services (Paul Griffiths) • Special Projects (Mark Gwilym)

• Each Category Lead is also a Sector Lead: Local Authorities: Sam Perkins, Sheila Powell & Karen Roberts

Overview of

Construction

&

Facilities Management Category

Scope

Definitions:

Soft FM – Management of non-technical

services within an estate, usually with high

customer focused output.

Hard FM – Management of technical

services within an estate, for buildings and

equipment, usually including mechanical/

electrical maintenance and building fabric.

Plant & Tool

Hire/

Purchase

Hard FM

Plant & Cons

Equip Suppliers

Inc. Grounds

Maintenance Equip

Civil Engineering

Equip Suppliers

Cleaning & Janitorial

Services

Cleaning & Janitorial

Supplies

M&E PPM

M&E Reactive

Maintenance

Furniture &

Fittings

Construction

Materials

Catering Services

(Non-Food)

Power & Hand Tool

Suppliers

Quarry &

Aggregates

Building Material

Suppliers

Office Furniture

Flooring & Fittings

Specialist Construction

Materials

Grounds Maintenance

Supplies

Soft FM

Security Services

Electrical & Mechanical

Wholesalers

Street Lighting &

Furniture

C&FM Current Projects: Framework Tenders for • Building Materials • Furniture • FM

• Supplier Event June 11th 2014

The National Procurement Service for Wales

Facilities Management: how the National

Procurement Service can help Welsh public

services to improve their Facilities Management

C&FM - North Wales Event FM Overview

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Overview of Facilities Management

C&FM - North Wales Event FM Overview

Num

be

r o

f S

erv

ices

Delivery Management

Managing

Agent

Total Facilities

Management

Provider

Bundled Service Provider

Single Service Supplier

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Total Facilities Management (TFM).

C&FM - North Wales Event FM Overview

• Sometimes also refered to as „Integrated Facilities Management‟

• Outsourced company supplies a fixed price for all support services.

• Combines employed staff and managed sub-contractors.

• „Man marks‟ all disciplines with help desk set up.

Managing Agents

• Third party monitors and manage performance of FM related disciplines.

Bundled Service Provider

• This is where an organisation chooses to outsource certain services as a combined package to an FM

provider.

• Less complex than TFM but gives some economies of scale.

Single Service Provider

• In House team manage a series of FM related disciplines

Major TFM Players.

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C&FM - North Wales Event FM Overview

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Future Trends.

C&FM - North Wales Event FM Overview

• Interest in outsourcing as a „hot‟ management topic.

• Heavy media coverage of PFI/PPP initiatives and Increasing

attention being paid to the sector by the financial community.

.

What are ‘Soft’ and ‘Hard’ FM Services?

C&FM - North Wales Event FM Overview

Definitions:

Soft FM – Management of non-technical

services within an estate, usually with high

customer focused output.

Hard FM – Management of technical services

within an estate for buildings and equipment,

usually including mechanical/ electrical

maintenance and building fabric.

Soft FM

Cleaning & Janitorial

Services M&E

Maintenance

Cleaning & Janitorial

Supplies

Catering (Non Food)

Grounds Maintenance

Security Services

Pest Control

Waste Management

Reception Services

Mail Services Reprographics

Room Booking

Systems

Hard FM

Building Fabric

Fire & Security

Access Control

UPS

Lift Maintenance

Water Treatment

Stat Inspections

Locksmiths

Doors & Barriers

Catering Equipment

Clocks

Re-Lamping

BMS

AC & Chillers

PAT & Fixed Wire

Testing

AV Equipment

Asbestos Control

Porterage

(Source : CCS and MITIE MoJ)

Red denotes out of scope

HV Equipment

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Monthly Category Forum.

C&FM - North Wales Event FM Overview

• Monthly Category Forum to commence in May representing all authorities

• „Understand‟ appetite and requirements prior to „All Wales‟ Framework being tendered.

• Forum will require a „Chair‟ and also representation across all sectors.

The forum will look to achieve the following:-

• Define and agree all disciplines required that are under „FM banner.‟ including specific and obscure

disciplines.

• Map all authorities with suppliers used at each authority for each discipline with contract expiry of each

FM related contract.

• Specification used at each authority for each discipline – commonise where possible.

• No of buildings and post codes for authorities ( be mindful of closing buildings).

• Get as comprehensive an asset list as possible. E.g. Number of lifts.

• Understand specialist services and OEM suppliers.

• Understand PPM(Planned Preventative Maintenance) spend v reactive spend and consider

„thresholds‟ if not already.

• Understand assets currently under warranty.

• Work together to understand and implement „Quick Win‟ Cost efficiencies.

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All Wales FM Framework – Initial Structure

C&FM - North Wales Event FM Overview

Lot 1 – Total/Integrated Facilities Management.

Lot 2 – Hard Facilities Management.

Lot 3 – Soft Facilities Management.

Lot 4 – Soft Facilities Management – Catering Services.

Lot 5 - Soft Facilities Management – Cleaning Services.

Lot 6 - Soft Facilities Management – Cleaning Supplies.

Lot 7 - Soft Facilities Management – Security Services.

Lot 8 – General and SME Marketplace.

NB This structure is tentative and will be re-evaluated in line with Category Forum. Geographical Lots will

be allocated to each discipline as the process evolves to tender stage.

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NPS and ‘All Wales’ FM Framework

C&FM - North Wales Event FM Overview

What are NPS looking to achieve?

Value for money and cost

efficiencies Deliver Community Benefits

Utilisation of SMEs

Quality of Service &

Meeting needs of customer

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NPS FM ‘All Wales’ Framework Timelines.

C&FM - North Wales Event FM Overview

. May 14 • Establish FM Monthly Category Forum.

July 14 • Issue PIN.

Nov 14 • Issue OJEU Notice.

• Contract Award Notice – Framework „Goes Live‟

May 15

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Outsourced FM – Why Engage? v Things to Look Out

For!

21 C&FM - North Wales Event FM Overview

Why Engage?

Helps Organisation concentrate on Core Business.

Reduces administration and management of multi

suppliers and employees. Single point of contact

approach.

Can deliver effective management of an organisations

assets.

Can enhance the skills of people within the FM sector

and provide identifiable and meaningful career options.

Encourages innovation and new processes.

Helps integration associated with change, post- merger

or acquisition.

Helps business continuity.

Lower bid price, fixed costings and risk transfer.

V

Things to Look Out For!

Low bids based on assumptions followed by clawing

back losses.

Start of any FM outsourced contract will have a „settling

in‟ period.

Day to day issues will occur but is how provider and

client deal with them.

Responsive Helpdesk is a must.

Control reactive spend and have a three quotes

approach.

Be clear on actual self delivered v sub-contracted ratio.

Robust contract with KPI‟s, penalty clauses and savings

target.

Client to keep control of asset lists and service

provision so re-tendering / in sourcing can be done well.

Manage TUPE issues with outsourcing/ changing

provider.

Contact number: 0300 790 0170 Email: nationalprocurementservice@wales.gsi.gov.uk Website: www.npswales.gov.uk

Any Questions?

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22

Construction and FM Supplier Event - Next Actions Timeline

C&FM - North Wales Event FM Overview

Thank you

Diolch