UNCLASSIFIED PROTECT - COMMERCIAL. Government Office Space for Start-up Businesses Programme Specification Annexe 1 DRAFT SPECIFICATION CONTENTS

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1 DRAFT SPECIFICATION CONTENTS 1. BACKGROUND AND AUTHORITY OVERVIEW OF REQUIREMENT LOCATION OVERVIEW SCOPE OF REQUIREMENT OFFICE SPACE INFORMATION BUSINESS SUPPORT SERVICE LEVELS AND PERFORMANCE LOCATION OF THE OFFICE SPACES TIMESCALES... 9 Page 1 of 10

2 1. BACKGROUND AND AUTHORITY 1.1 The Government Property Unit (GPU) forms the property arm of the Efficiency and Reform Group (ERG) within the Cabinet Office. GPU leads on government s property strategy across the public sector and is responsible for delivering targeted savings in addition to improving the built environment. GPU is also responsible for promoting economic growth where possible. 1.2 The Department for Business, Innovation and Skills (BIS) was formed in 2009 by the merger of The Department for Business, Enterprise and Regulatory Reform and the Department for Innovation, Universities and Skills. BIS supports sustained growth and higher skills across the economy, making a difference to the UK as a whole. 1.3 Both the Government Property Unit and the Department for Business, Innovation and Skills will form the Authority for the Government Office Space for Start-up Businesses Programme. 2. OVERVIEW OF REQUIREMENT 2.1 The aim of the Government Office Space for Start-up Businesses initiative is to encourage start-up businesses to make the transition from bedroom/house to their first nursery office space. Government wishes to help enable this by using its stock of surplus unoccupied office space as nursery space or Supported Start-up Business Space, drawing upon the Incubator model. 2.2 The duration of the programme is anticipated to be up to 18 months. This figure allows for an initial setting-up and fitting out period of up to 3 months, and a final closing down period of up to 3 months to be used for dilapidation (if necessary). This should leave up to a clear 12 months to be made available for use by suitable Startup Businesses (referred to hereafter as End Users). 2.3 The Authority is thus looking to appoint Potential Providers to facilitate this programme by managing and marketing on its behalf this space to the target group of businesses. The service of the Potential Providers will be as follows: Management of the locations organising the space into suitable Supported Start-up Office Space which will be attractive to those End Users which this programme is designed to assist, and the ongoing responsibility and management of the locations Provision of business support and development services which will add value to the End Users and will encourage innovation and growth 2.4 Potential Providers will need to demonstrate how they will encourage and nurture entrepreneurship to the End Users the Start-up spaces by providing tailored business support services, which can include, but not limited to: Face to face and or group advice services tailored to the needs of business start-ups Online or telephone advice services tailored to the needs of businessstart-ups. Page 2 of 10

3 2.4.3 Assistance in accessing outside business development help, such as mentoring, access to finance, workshops and support groups, and local business development services Facilitate networking activities, and access to appropriate business support from both the public and private sector Follow through advice to help participating businesses; for example, advice to start-ups to find new premises, should they prove successful and outgrow the nursery space, or advice to viable businesses at the end of the programme. 2.5 Potential Providers will be responsible for the marketing of the programme to increase uptake and overall success. 2.6 The Potential Provider will be managing the provision of the surplus office space in the government property concerned and therefore the programme will be of key interest to Parliament and the public in general. 2.7 The information provided from the programme will help the Authority determine the overall procurement route of the Government Office Space for Start-up Business Project. 3. LOCATION OVERVIEW 3.1 The locations which will be provided are a mixture of leasehold and freehold spaces, which are currently held by the Government departments, and are currently vacant. In order to provide this service to the End Users at an advantageous rate, the Authority will initially make these locations available to the Potential Providers free of rental charges. The Potential Providers will be liable for servicing specific office spaces (please see paragraph for details of envisaged breakdown of the liabilities). The Potential Provider will be expected to work with the current government tenants (referred to hereafter as the Primary Occupier/s) to administer and manage the process of offering short term supported office space. 3.2 Below are a set of principles we envisage to apply to any legal agreement between individual departments, potential providers and, where relevant, landlords. In case of leasehold properties the primary landlord has given his agreement to participation in this initiative in principle, however full legal agreement will be concluded when the Procurement process has been completed and the successful Potential Providers have been selected In case of leasehold properties: It is intended that suitable vacant space will be made available directly by the Primary Occupier to the successful Potential Provider. Depending on the terms of the lease with the Secretary of State (or the Non Departmental Public Body), landlord s consent is most likely to be required. Page 3 of 10

4 The preferred route will be to request a waiver from the landlord to allow temporary parting with possession of all or part of the government space to enable it to be used as a serviced office. A management contract will then be awarded to the successful Potential Provider In cases where a landlord will prefer a more formal consent there is possibility of using either of the two options: To request a Deed of Variation from the landlord to vary the use of the government space to enable it to be used as serviced offices. A management contract could then be awarded to the successful Potential Provider In case of freehold properties: (b) However some landlords might find route unacceptable and therefore landlords consent for an underletting with a formal sublease between a Primary Occupier and the successful Potential Provider might be required but this will be subject to consent from the landlord and the particular lease will need to be scrutinised to establish whether such consent can be unreasonably withheld. A tri-partite agreement to allow the landlord similar termination rights as the Primary Occupier and the Potential Provider (see (c).) can be used where this will secure consent from the landlord It is intended that a management contract will be awarded to the sucessful Potential Provider for the management of the serviced offices Independent of tenure or form of legal agreement between department and a potential provider, we envisage the following principles will apply: Contract terms for a Potential Provider: (b) (c) The timescale of offering any premises to the successful potential provider will be flexible but will last up to 18 months Any management contract or sub lease on the property used for this initiative MUST have a termination date BEFORE the expiry of the Secretary of a Primary Occupier s lease A standard clause enabling the agreement to be terminated by either side on giving 90 days notice will be included in any management contract or sub lease on the property used for this initiative Page 4 of 10

5 (d) (e) (f) Government carries its own insurance risk. It does not insure freehold buildings or leasehold buildings where it is the sole occupier; where the Crown is not the only tenant there will usually be a covenant to make contribution to insurance premiums. In these circumstances the successful Potential Provider will be required to carry insurance for the serviced office area against the usual risk, including, but not limited to, fire, flood and business interruption. In addition the Potential Provider is responsible for covering any claims arising from third parties using or visiting the serviced office area. The Potential Provider will not be permitted to offer security of tenure to the occupiers and the terms of any serviced office agreement must be approved by the GPU. The Potential Provider must be willing to grant access to the Primary Occupiers and also the Authority (the Department for Business, Innovation and Skills and also the Government Property Unit) at any stage of the Incubation programme Liabilities (b) (c) Primary Occupiers will remain responsible for rent and uniform business rates for each property unless otherwise stated. In respect of some Lots certain conditions may apply (these will be detailed in the Property Annexe 2). The Potential Provider will be responsible for any dilapidations arising during the term of their occupation and will be expected to return the premises back to the Primary Occupier in the same state as the premises were received The Potential Provider will be required to service specific office spaces. Servicing can include but is not limited to: the fit-out of office areas; supply of furniture and equipment; cleaning; support and maintenance. Any additional costs associated with running the building such as security, facilities management and utilities will be the responsibility of a potential provider and will be charged by the Primary Occupier on a monthly basis. Depending on the arrangements this will be charged as per meter reading, where applicable and a separate meter is available, or on a pro-rata basis Alienation: Page 5 of 10

6 The Potential Provider will not be permitted to sub-let, sell or assign the spaces that they occupy 4. SCOPE OF REQUIREMENT 4.1 The scope of the programme includes the following key deliverables: Management of the Programme The Potential Provider will be expected to manage the programme from Contract Commencement Date to Contract Expiry Date The Potential Provider will need to demonstrate their capability and capacity to: (b) (c) (d) Physically manage the locations as Supported Start-up Space Provide support which will encourage and nurture entrepreneurship for the businesses using the space, and to facilitate their growth Demonstrate how they will gather evidence to track the numbers and progress of businesses using the space; Provide information on the success and viability of the programme Running of the Programme The Potential Provider will also have to ensure that start-up businesses occupying the Supported Start-up Space under the programme have been provided with the appropriate Licence agreements (in accordance with the terms agreed with the Primary Occupier) and that the End User charges will form part of this contract The Potential Provider will be responsible for providing Business Support services to all end users The Potential Provider will provide the Authority with the agreed Key Performance Indicators as agreed, and will attend regular meetings with the Authority in order to report on the success of the programme Office Space The Potential Provider will manage the indicated office space for the Primary Occupier. They will be responsible for the following: Page 6 of 10

7 (b) (c) (d) (e) (f) (g) (h) Any temporary decorations or alterations they might choose to make to create the Supported Start-up space The fit-out of office and the provision of furniture to be utilised by the End Users. Support and maintenance of the office space, the facilities and infrastructure used by the Potential Provider and End Users Health and Safety, welfare, and security of End Users and their own personnel using the space. Cleaning. Where no existing cleaning contracts are in place, Potential Providers will be expected to make provision for cleaning the space. The Utilities and Service charges (which will be charged as per meter reading where applicable and a separate meter is available or on a pro rata basis by the Primary Occupier on a monthly basis). Insurance for the office space Dilapidations Marketing of the Programme (i) Providing a guarantee. In order to provide security that the office space will be handed back to the Primary Occupier in its original state, a deposit or bank guarantee will be required It will be the responsibility of the Potential Provider to promote and advertise the programme to new and potential start-up organisations. The Potential Provider will therefore need to effectively advertise the programme to the specific target audience Possible means of advertisement include but are not limited to advertisements in local newspapers, trade magazines, local radio and television The chosen advertisement route is solely at the discretion of the Potential Provider. Potential Providers are responsible for meeting the full costs of any advertising Potential Providers should also use their expertise and knowledge of the business provisions of the local area by exploiting their networks to target potential End Users. This may include Local Enterprise Partnerships. Business Angel Networks, Mentoring Networks and other localised hubs targeting start-up and innovative businesses It is the Potential Provider s responsibility to increase the awareness of the programme to ensure its overall success. Page 7 of 10

8 5. OFFICE SPACE INFORMATION 5.1 Potential Providers shall ensure that each office space should be provided with a minimum of basic touchdown or hot desk space, with access to internet connection and telephony service 5.2 The charge for the End User for the Supported Start-up space provision should include all service charges in addition to the business support and advice services which form part of the programme. These service charges will be payable by the Potential Provider to the Primary Occupier and will be invoiced by the Primary Occupier on a monthly basis. 5.3 It is of the sole discretion of the Potential Provider as to whether additional facilities are included within each office space. Costs involved in providing these additional facilities will be borne by the Potential Provider and therefore need to be considered when submitting a Tender and when setting the charge level for End Users. 5.4 Each office space could range from whole buildings to individual floors which can be either open plan partitioned space or desks within an occupied floor. Further details will be made available for each individual location in the Property details in Annexe The Potential Provider will be responsible for providing all furniture required unless otherwise stated, such as desks, chairs and ancillary items. 5.6 The Potential Provider should assist the End User in finding follow-on space or help negotiate terms with the landlord of that particular office space if the End User decides to reach agreement to continue occupying the office space. 5.7 Upon completion of the programme the Potential Provider will be expected to restore the office space to a condition suitable for another occupier or for handing back to the landlord. Potential Providers will be asked to provide a deposit or bank guarantee as surety. 6. BUSINESS SUPPORT 6.1 It will be the responsibility of the Potential Provider to provide customer support during the. 6.2 Each End User will require advice based on their individual needs and therefore the Potential Provider must have a support function available during core business hours of Monday Friday 9.00am 5.00pm to support End Users on a continual basis. 6.3 In addition to ad hoc business support, as part of its service offering to the End Users the Potential Providers should provide a tailored business support plan, which would need to be regularly reviewed and updated. It is anticipated that the Potential Provider should schedule regular support and update meetings with the End Users, in order to evaluate their success, monitor change and implement any required change and amendments to their support. 6.4 Customer support should also include advice regarding tenancy expiry dates. For example providing End Users with help and advice on where to next locate their business or assisting them in negotiating a long-term agreement with the landlord of that particular office space. 6.5 The success of the programme will highly depend on how effective the customer support service and the satisfaction rate of End Users should be regularly monitored. Page 8 of 10

9 7. SERVICE LEVELS AND PERFORMANCE 7.1 The service will be subject to a Management Contract, which will have key Service Level Agreements defined. The Potential Provider will be responsible for collating the data to support these Service Level Agreements, and The Authority will measure the quality of these results. These may include: Evaluating the efficacy of the marketing of the Supported Start-up space Quality assessments which will include visiting the Locations to evaluate if the space is ready for use, and during the programme how the space has been used The uptake of the Government Space Programme; how many End Users are the Potential Providers able to attract The feedback provided by End User; this can be taken by simple customer feedback surveys Case studies of successful End Users how their business improved during their Incubation period. 7.2 The Potential Provider will be required to consistently report on the above Service Levels to the Authority in order for the Authority to convey findings to the Cabinet Office and Government as a whole. In addition to this, Potential Providers are asked to keep a full record of their provision of the service, and will need to be willing to respond to individual departments who may be subject to Freedom of Information requests regarding the uptake of the programme. 7.3 Potential Providers will be asked to be an active member of a board comprising all providers of the Supported Start-up Space programme. This will be to support the aims of the delivery of the programme and to ensure the quality and impact of the scheme is maximised in each location, and to act as a forum to share ideas and solutions. 7.4 The Authority reserves the right of early termination for poor performance without redress or compensation, but with an appropriate termination clause, which will be covered in the Management Contract. 7.5 The Authority reserves the right to terminate the provision for any disreputable conduct on behalf of the Potential Provider or the End Users. 7.6 The Authority reserves the right of termination if, without sufficient reason, the provider fails to mobilise (set up) the space within three months of contract award. 8. LOCATION OF THE OFFICE SPACES 8.1 For the purposes of the programme, the Potential Provider will be expected to manage, run, service and promote the vacant office spaces as detailed by the requirement. 8.2 The office spaces related to the programme can be found in the details in Annexe TIMESCALES 9.1 The initial duration of the programme is anticipated to be 18 months. This figure allows for an initial setting-up and fitting out period of up to 3 months, and a final Page 9 of 10

10 closing down period of up to 3 months to be used for dilapidation (if necessary). This should leave up to 12 clear months to be made available for use by End Users. 9.2 The planned occupancy periods for End Users will be flexible but initially last for 12 months. All locations will be subject to withdrawal from this programme at any time during the procurement process, and (subject to appropriate notice) when managed by the Potential Providers at any stage during the programme. The anticipated Contract Commencement Date of the is from August Page 10 of 10

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