M O P AX. i Y/k (7. annual value of the services is circa E80m. The overall FM service has been worked up into 5 packages.

Transcription

1 Title: Procurement Request September 2013 Executive Summary: riequest FOR DMPC DECISION DMPCD DMPCD v3 Signature Date i Y/k (7 The above request has my approval. Authority. Any such interests are recorded below. take the proposed decision in compliance with the Code of Conduct for elected Members of the Deputy Mayor for Policing and Crime f560m. Management packages of services as set out in paragraph 2.], with an e5timated multi-year value of up to The DMPC is asked to approve KSR as the FM Integrator to initiate procurement for the Facilities Recommendation: The length of each of the packages is up to 7 years. annual value of the services is circa E80m. The overall FM service has been worked up into 5 packages. (FM), approving the FM Integrator to undertake the procurement on behalf of MOPAC. The estimated Th15 paper requests the approval to initiate procurement for the sub-contracts of Facflities Management M O P AX C MAYOR OFFICE FOR OLICINO AND CRIEiE I confirm I have considered whether or not I have any personal or prejudicial interest in this matter and June OF LONDON

2 solutions. budget exists to meet this. Estimated Contr&ct Value 2. Issues for consideration 1.1 As part of the on-going process of managing contracts and tendering/re-tendering for goods and or to initiate contract action to tender or re-tender for goods or services. PART I - NON-CONFIDENTIAL FACTS AND ADVICE TO THE DMPC services Procurement Services identifies contracts which require DMPC approval for either extension 2.2 Appendix 1 sets out further detail of the individual elements comprising each of the 5 packages. 4. Legal Comments Decision required supporting report 3. Financial Comments 1. Introduction and background 3.] The cost of the proposed contracts is estimated at up to LSGOm over a 7 year period, and sufficient 4,1 Procurement Services has confirmed that the procurement process will be conducted in compliance 5. Equality Comments 5.1 The Integrator will be required to ensure services support and adhere to the MPS Environmental Policy, MPS Corporate Social Responsibility Strategy and the MPS How We Police Report Background/supporting papers 2.1 The following items are requested to be considered for approval to initiate procurement action: 5.2 The Integrator model supports the Mayor s commitment to actively engage small, medium and large 6.1 None OMPCO v3 with EU/UK procurement law and the MOPAC governance framework. Legal compliance through DLS will be sought before contract award. solutions will be evaluated as part of the tender process. businesses which support the Responsible Procurement objectives for competitive and innovative Bidders will be requested to provide an outline description of how this will be achieved and their Waste f1.jmp.a. Soft FM i 142.lmp.a. Qperational Support Epp.a. Buil4 Fabric Maintenance L12.3m p.a. Building Engineering Services E16.7m pa. June

3 Public access to information Information in this form is subject to the Freedom of Information Act 2000 (FOIA) and other legislation. Part 1 of this form will be made available on the MOPAC website within 1 working day of approval. Any facts/advice/recommendations that should not be made automatically available on request should not be included in Part 1 but instead on the separate Part 2 form. Deferment is only applicable where release before that date would compromise the implementation of the decision being approved. Is the publication of this form to be deferred? NO If yes, for what reason: Until what date (if known): Is there a part 2 form No If yes, for what reason: ORIGINATING OFFICER DECLARATION: Head of Unit: Annabel Cowell has reviewed the request and is satisfied it is correct and consistent with the MOPAC s plans and priorities. Legal Advice: The Legal team have been consulted on this proposal. Financial Advice: The Chief Finance Officer has been consulted on this proposal. Equalities Advice: The Equality and Diversity team have been consulted on this proposal on behalf of the Head of Equalities and Diversity. Tick to confirm statement (V) V I I I OFFICER APPROVAL - 1 Chief Operating Officer.;.,.,..-.; :..i4f / I have been consulted about the proposal and confirm that financial, legal and equalities advice has been taken into account in the preparation of this report. I am satisfied that this is an appropriate request to be submitted to the Deputy Mayor for Policing and Crime. Signature,7/ Date fl/. oi DMPCDv3 June2Ol2 3

4

5 Services. This paper seeks approval to grant KBR delegated authority to manage a series of chain of FM Services on behalf of the MOPAC/MPS. FM services will be directly contracted to the an Integrator, will procure through a series of OJEU Restricted Procedures, and manage a supply In March 2013, MOPAC approved the award of a collaborative Framework Agreement and Call off Executive Summary Report by Director of Procurement on behalf of the Commissioner Contract to Kellogg, Brown & Root (KBR) Limited to deliver Facilities Management (FM) Integrator procurement exercises to appoint a FM Supply Chain, on behalf of the MOPAC. KBR Ltd, acting as PROCUREMENT Appendix 1. appoint a FM supply chain, on behalf of the MOPAC. The services to be procured are listed in 1. To approve that KBR Ltd, acting as the Integrator, will manage a series of procurement exercises to A. RECOMMENDATION seek the approval of Contracts Board and MOPAC. behalf of the MOPAC via KBR. All subsequent contract award recommendations over 500,000 will Between September 2013 and April 2014, six OJEU procurement processes will be managed on Current contract values can be found in Appendix 1. The Integrator has developed a robust and fit for purpose source plan which details how they will procure and manage the FM Supply Chain provided to MOPAC. ensuring value for money and compliance objectives are met. The outputs of which will be monitored closely by MPS Property and Procurement Services and frequent briefings will be the volume of reactive and minor works projects). An optimum value of aggregated requirements change control, volumetric reductions and a benefits realisation tracker. levels. FM delivery savings have been estimated in the region of 7% to 10% of the total FM Supply Chain spend, equating to a potential ESim to 7.3m per annum from April 2014; current estimates by KBR suggest a minimum of 8%. Savings and other benefits will be tracked through contract 7 years, ensuring competitive tension and maximum value. It is anticipated that the integrated continuous improvement to the supply chain management, reviewing the supply chain over the next over seven years is estimated at 560m, based upon current estate size and portfolio. KBR will apply model will generate substantial efficiencies within the FM Supply Chain and deliver improved service Current contracts for the delivery of FM services are valued at circa BOm per annum (depending on drive changes to standards and policies, thus integrating the FM Services within the broader.iaintenance will be coordinated by KBR who will utilise data and enhance the current building their cuntact centre which aligns to the MPS Support Services single contact number. KBR will management system in order to prioritise and pin point investment to assets, pre-empt failures and provide r fully accredited Computer Aided Facilities Management and Management Information System nterfaced with MPS corporate systems. The primary user interface to KBR will be through provire a site based, and a financial audit team who will manage quality of completed works and addition to the procurement and day to day management of Property Services contractors, KBR will pa ments to the supply chain on behalf of the MPS. Forward Works Planning and asset property function. MOPAC and will be delivered through second tier supplier contracts with specialist providers. In FACILITIES MANAGEMENT INTEGRATOR: FACILITIES MANAGEMENT SUPPLY CHAIN Appendix 1

6 1. 1. On 20 October 2011, the Metropolitan Police Authority (MPA) Finance and Resources Committee, S. SUPPORTING INFORMATION was received from Contracts Board on 11 February Consistent with the approved strategy, and in addition to full integration services, the Integrator will 2014). One suci service March Deputy Mayor for Policing and Crime on 20 March A compliant Restricted OJEU procedure Appendix I 4. KBR Ltd have now completed a three month mobilisation phase. A key deliverable fc KBR Ltd in 5. The route to market for each of the six high-level packages presented in Appendix 1 will be through 6. The second tier supply chain will be directly contracted to MOPAC and will be delivered through 7. It is anticipated that the integrated model will generate substantial efficiencies within the FM Supply 8. At contract award stage, it is expected that given the volume of service requirements (as listed in 9. In the short term, regular update5 to the MOPAC will be provided at two stages: 2. Approval to initiate the first phase of the FM Integrator procurement exercise was granted by the 10. With regards to the contractual position, performance of both the Integrator and second tier supply April now the Mayor s Office for Policing and Crime (MOPAC), approved the procurement strategy for the delivery of Facilities Management (FM) services through an integrated model, for implementation by objective to deliver value for money services and timely delivery of the requirements. Chain. The Integrator is developing a robust, comprehensive and fit for purpose source plan with an was completed and approval to award the Integrator framework agreement and contract to KBR Ltd this period included the development and acceptance by MPS of detailed service delivers plans for act as a first tier supplier providing procurement and supply chain management of the FM Supply delivery plan is an iterative source plan (procurement strategy) for each of service lines lisls1.;.. Appendix 1, The indicative packages listed have been derived through the evaluation of historic implementation in the service development phase (July data on reactive and planned service costs, frequencies and requirements in order to attract an tender documents. The market response will be evaluated from an economic and service perspective optimum solution from the supply chain market. Options for handy persons at key buildings to to arrive at an optimum and affordable supplier model. resolve and respond to reactive calls (such as changing a light bulb), are being considered within Appendix 1) and the potential number of contracts to be awarded, the process will be consolidated to ensure efficiency of review. supplier contracts with specialist providers. It is expected that at least some or all of the second tier a series of OJEU Restricted procedures. contracts will be accessible to other contracting organisations, such as the Greater London Authority (CLA), in order to maximise aggregation and collaboration benefits. should the Integrator, or a second tier contractor, fail to meet the specified service levels: 7% to 10% of the total FM Supply Chain spend, equating to a potential 5.lm to L7.3m per annum from April KBR have estimated minimum savings of 8% and these are presented in Appendix Chain and deliver improved service levels. FM delivery savings have been estimated in the region of contractual performance mechanism to provide sanctions and recompense to the MOPAC/MPS chain will be measured using appropriate Critical and Key Performance Indicators. There is a defined a. When tenders are received to confirm the delivery of the projected savings. b. Before contracts are awarded.

7 payment is released management reporting and benefits analysis. that MPS requires from the Integrator. Outputs from this governance include performance mechanism is in place to increase this deduction month on month 11. In addition, the contract sets out the principles for the governance and relationship management Integrator s cost), claim of any losses incurred and ultimately termination b. Upon endorsement by the internal MPS Service Level Governance Board, the 60% balancing c. In the event of KPI or service levels continue to fall below contract standards, a ratchet d. For repeat failure, other contract sanctions may apply, these include step in rights (at have been met and service levels have been delivered as contracted the report are covered by the budgets set out in the current Business Plan (confidential information implications arising from this request at this time. The costs associated with the contracts set out in approve all requests to go out to tender for contracts over L0.Sm. There are no additional financial Financial Implications solutions will be evaluated as part of the tender process. businesses which support the Responsible Procurement objectives for competitive and innovative solutions. The Integrator will be required to ensure services support and adhere to the MPS Environmental Bidders will be requested to provide an outline description of how this will be achieved and their Equality and Diversity Impact that demonstrates and realises actual financial savings to the contracting authority. It is expected that this regime will also be rolled out across the second tier contracts. budget which arise as a direct result of the implementation of an approved Cost Saving Initiative 15. The Integrator will be entitled to a share in measurable and auditable net savings made against the contracting authority in managing and maintaining the Authority Estate. This is by way of formal with a view to the achievement of on-going reductions in the costs and resources employed by the 14. There is a gain share mechanism set out in the contract to incentivise the Integrator to identify efficient, economic and effective working practices, processes and improved technology possibilities business case escalated through the contract governance system. 13. The management/supervision of the second tier supply chain is the sole responsibility of the Integrator. Contract KPIs for the Integrator will be aligned/back-to-back with the supply chain contracts. the integrated model and associated contracts will be closely monitored and reported periodically to the MOPAC. delivered by both the Integrator and second tier supply chain will continuously be benchmarked 12. An Intelligent Client Unit led by MPS Property Services, supported by MPS Procurement Services, against both the industry and agreed baseline, and will be tracked through contract change control, volumetric reductions and a benefits realisation tracker. Performance, progress and deliverables of a. 60% of profit margin will be withheld every month until the Integrator can prove that all KPIs will commercially and operationally manage the Integrator Services Contract. Savings and benefits C. OTHER ORGANISATIONAL & COMMUNITY IMPLICATIONS Policy, MPS Corporate Social Responsibility Strategy and the MPS How We Police Report The Integrator model supports the Mayor s commitment to actively engage small, medium and large 1. In accordance with Section 8.4 of the MOPAC Scheme of Delegation, the Deputy Mayor must Appendix 1

8 is contained in part two of the report). stage. Appendix I Financial approval will be reassessed at the contract award Legal Implications 1. In accordance with Section 8.4 of the MOPAC Scheme of Delegation, the Deputy Mayor must approve all requests to go out to tender for contracts over fo.sm (any confidential information relating to Legal Implications is set out in part two of the report). There are no legal implications at this stage. Procurement Services has confirmed that the procurement process will be conducted in compliance with EU/UK procurement law and the MOPAC governance framework. Legal compliance through DLS will be sought before contract award. Background/supporting papers FM Integrator Contracts Board - 11 February 2013 Provision of FMS F&R - 20 October 2011 Report author: Lee Tribe, Director of Procurement

9 INSPECTIONS Appendix 1 Appendix 1 - Indicative packages and list of services to be procured on behalf of the MOPAC/MPS by KBR Ltd :! I Estimated Estimated Savings PACKAGE CATEGORIES Value Per Per SERIAL GROUPS OF PACKAGES Annum Annum CONTENT OF CATEGORIES STATUTORY INSPECTIONS 1 (2) Inc n BES Inc in BES INSPECTIONS - WATER ANALYSIS 2 REMAINDER BUILDING ENGINEERING 3 SERVICES (BES) (11) 16,682,000 1,794,140 LEFTS ROLLER SHUTTERS, BARRIERS, DOORS & GATES AND TRAFFIC 4 CALMING & STOPPING SYSTEMS BOAT HOISTS & AIRCRAFT HANGAF S DOORS MECHANICAL & ELECTRICAL (INCLUDES AUTOMATED TIME RECORDER MAINTENANCE AND 6 REPLACEMENT, WHITE GOODS) LIGHTNING PROTECTION 7 CONDUCTORS S FIRE SECURITY & COMMUNICATIONS 9 SYSTEMS & EQUIPT 10 PUBLIC HEALTH & ENGINEERING 11 FUEL METERING & PUMPS 12 DIESEL UPS 13 BMS SOFTWARE BUILDING FABRIC GENERAL BUILDING WORKS 14 MAINTENANCE (BFM) (6) 12,310,000 1,324,500 INCLUDES RESIDENTIAL SIGNS STRUCTURAL CIVILS WORKS 15 INCLUDES RESIDENTIAL 16 FLAGS, POLES, MASTS & TOWERS 17 GYM EQUIPT 18 FIRING RANGE & FIRING EQUIPT 19 CUSTODY SUITES / CELLS PERSONNEL HIRE (MAIL SCREENING (NEW FM RQT), MAIL SERVICES, PORTERING, RECEPTION 20 SOFT FM (6) 42,115,000 3,142,588 REPROGRAPHICS, WARDENS 21 SECURITY 22 FURNITURE (NEW FM RQT) CLEANING & LAUNDRY (INCL LEVIER PICKING OF ROADS, PATHWAYS, CAR PARKS, COURTYARDS, PAVED AREAS & 23 HARDSTANDING, CELL BLANKETS) 24 PEST CONTROL GROUNDS SWEEPING OF ROADS, PATHWAYS, 25 CAR PARKS, COURTYARDS, PAVED / / MAINTENANCE (INCL /

10 Appendik I AREAS & HARDSTANDING 26 WASTE (3) 1,720, ,400 GENERAL WASTE MANAGEMENT CLINICAL SANITARY & HAZARDOU 27 WASTE 28 RESTRICTED WASTE COLLECTION OPERATIONAL SUPPORT GROUP (OSG) - EVENTS 29 MANAGEMENT (3) 5,000,000 27,500 SPECIAL EVENTS (NEW FM RQT) MECHANICAL & ELECTRICAL (NEW 30 FM REQUIREMENT) 31 BUILDING / CIVILS (NEW FM RQT) Total 07,827,000 6,409,128 Projected Savings (Minimum) 8%