b Cabinet 9 July 2012 Total Facilities Management - Procurement All Wards Cabinet Portfolio: Cabinet Member for Finance and Resources: Councillor Paul McGlone Report authorised by: Executive Director Finance and Resources: Mike Suarez Executive summary This report provides Cabinet with conclusions on the Total Facilities Management (TFM) procurement. The TFM project brings together, for the first time, the procurement of Facilities Management across the Council s asset base (excluding Housing) for Hard FM (reactive and planned maintenance) and Soft FM (cleaning, security, and cash collection). These critical services are currently outsourced and are delivered by various contractors at a total annual cost of 8.65m per annum. As well as the FM related outputs, in terms of cost savings and improved quality of service, the Total FM procurement, following Members steer from the outset of the project, also focused on realising a series of community outcomes including furthering the council s Co-operative borough ambitions and supporting the local economy, which include our aspiration to have council contractors pay the London Living Wage if affordable. Based upon the results of the council s procurement processes and officers recommendations, this report recommends to Cabinet to appoint: Balfour Beatty as the preferred bidder for the Hard FM, Security and Cleaning Services, G4S for the Cash Collection Service and, Interserve Consulting for Project Management Services South London and Maudsley (SLAM) for Carpet Cleaning in non-core buildings As well as highlighting the strategic outcomes resulting from the programme, the report also sets out the procurement process and strategy in detail. Part 2 of the report, is exempt from disclosure and details the Council s thorough evaluation of proposals from the private sector bidders, and sets out the key factors that form the recommendations to Cabinet.
Summary of financial implications The Total Facilities Management (TFM) procurement project secures Hard and Soft Facilities management services for the council for a 5 year period with an option to extend for two years from 1 st September 2012. On a combined spend of 8.65m per year (including schools at 2.3m), the council has secured a 20% reduction in costs to approximately 6.9m per year (including schools) and 5.07m excluding schools. This equates to contractual savings of 1.73m per annum ( 1.30m p.a. excluding schools) or 8.7m ( 6.50m excluding schools) over the five year contract period. The TFM procurement in addition to securing the financial benefits outlines also delivers payment of the London Living Wage to all 154 personnel employed in the security and cleaning services. The council has also set the necessary conditions to extend the TFM contract to create a FM shared service for the 4 boroughs named in the OJEU. The TFM procurement has also delivered a Community Development fund of 150k to support the Cooperative Council ambitions of the council, which has the ability to increase based on the potential scalability of the contract. Recommendations (1) To approve the officer recommendation for the appointment of : Balfour Beatty as the preferred bidder for the Hard FM, Security and Cleaning Services, G4S for the Cash Collection Service and, Interserve Consulting for Project Management Services South London and Maudsley (SLAM) for Carpet Cleaning in non-core buildings (2) To delegate to the Executive Director for Finance and Resources in consultation with the Cabinet Member for Finance and Resources to conclude the appointment of the Preferred Bidders, and the subsequent implementation of the contracts by September 1 st 2012. (3) To note the achievement of realising 20% reduction in contract costs but also securing London Living wage for all contracted staff for security and cleaning personnel (currently 154 people). (4) To note the added value outcomes around the wider community benefits, particularly the preferred bidders support on apprenticeships and local businesses as part of the supply chain, arising from this procurement. (5) To note the scalability of the contracts in relation to the Accommodation Strategy in that the pricing model allows easy identification of costs as buildings are taken out of scope, as well as the associated gain share if other schools or Council associated parties access the contract and third party income (should any of the four boroughs named in the OJEU notice access the contract. 2
(6) To note the award of the council s first sheltered contract under EU procurement rules, enabling a direct award to SLAM Carpet Care project for employment of 15 vulnerable people Consultation Name of consultee Department or Organisation Date sent Date response received Comments appear in report para: Internal Cllr Paul McGlone Cabinet Member for Finance & Resources Mike Suarez Executive Director of F&R 21.06.12 27.06.12 Sue Foster Executive Director HRE 21.06.12 Venetia Reid- Baptiste 22.06.12 27.06.12 Throughout report AD Commercial 21.06.12 26.06.12 Throughout report Patricia Anamoah Head of Business Management & FM 21.06.12 Throughout report Uzo Nwanze Head of Valuation & Asset 21.06.12 Throughout Management report Frank Higgins Corporate finance 21.06.12 26.06.12 Liz Gibson External legal advisor Ashfords 21.06.12 22.06.12 Throughout report Andrew Pavlou Governance & Democracy 21.06.12 22.06.12 4 Report history Decision type: Key Decision: April 2012 Key decision: reason EITHER a) expenditure or savings of 500,000 or more X Authorised by Cabinet member: Date report drafted: OR/AND: b) proposal affects significantly two or more wards Date report sent: Report deadline As above 19.06.12 22.06.12 18.06.12 Report no.: Report author and contact for queries: 74/12-13 David Ashmore, Divisional Director Revenue, Benefits & Customer Services & Venetia Reid-Baptiste AD Commercial 020 7926 0990 dashmore@lambeth.gov.uk / 020 7926 3194/ vreid-baptiste@lambeth.gov.uk x Background documents Lambeth Procurement Guide Appendices 3
Appendix 1: (Part 2) Total FM Final Evaluation (exempt from disclosure). This report is exempt from disclosure by virtue of the following paragraphs of Schedule12A to the Local Government Act 1972: Paragraph 3: Information relating to the financial or business affairs of a particular person, including the authority holding that information 4
Total Facilities Management Procurement 1 Context 1.1 The Council s property portfolio running costs for both hard and soft FM services are outsourced with long running contracts. As these had not been submitted to recent Value for Money (VFM) tests and to create the opportunity to achieve economies of scale, the contract periods were synchronised (via extensions through the Corporate Procurement Board) to ensure that they would all (barring the Hard FM services) end on 31 st August 2012. This presented the opportunity to conduct a single procurement exercise to encompass all the services. 1.2 Although the services were incorporated in the same OJEU notice, they were marketed as separate Lots as follows: Lot 1 Hard FM (planned and reactive services) Lot 2 Security Services Lot 3 - Cleaning Services Lot 4 - Cash Collection Lot 5 Project Management Services Lot 6 Carpet Cleaning 1.3 Bidders were invited to bid for one, all, or a combination of lots.this provided the opportunity for specialist companies to bid for the appropriate service and to made the project more attractive to the market 1.4 Due to the need to facilitate discussions around different delivery models, added value outcomes as well as the requirement to provide scalability to meet the requirements of the Accommodation Strategy, the Strategic Asset Management Group (SAMG) decided that there was enough complexity in the procurement that the competitive dialogue process be used. 1.5 Officers have explored opportunities for collaboration with other Boroughs. Lambeth is a member of the South East London Procurement Group. In February 2011 the group commissioned PwC to identify areas in which they could collaborate. An opportunity was identified in FM services and 4 boroughs (Croydon, Bromley, Bexley and Lewisham) have been named in the OJEU to provide them the option of accessing the contract at a later date. 1.6 The project governance arrangements incorporates : The Asset Management Cabinet Advisory Panel (AMCAP) to provide the key interface with members The Council s Strategic Asset Management Group, chaired by Executive Director for Finance & Resources and the Executive Director for Housing, Regeneration and Environment are the sponsors of the 5
programme, and receives monthly reports on the project and agree key milestones The Total FM project team has senior representation from across the Council and was led by the Assistant Director Commercial with escalation to the Divisional Director of Revenue, Benefits and Customer Services and the Head of Valuation and Asset Management. 2. Strategic Outcomes 2.1 In addition to the typical procurement outcomes of savings and service standards (which are set out in section 3 below), members, as part of the emerging Gateway Zero process outlined some desirable outcomes from the project. Table 2.1 below outlines these outcomes and sets out how these have been achieved in the procurement: Table 2.1- Desired Outcomes Desired Outcomes That Bidders include a London Living Wage pricing variant Within the EU procurement Regulations, Lambeth for the first time exercise its right to utilise the sheltered contracts provision. Commentary on how achieved All Bidders accepted the Council s negotiating position of including London Living wage as the pricing mechanism for the final bid for Lots 2 and 3 Security and Cleaning services. The Balfour Beatty bid exceeded the savings targets for these lots and included the London Living Wage. The strategy utilised was to separate the Carpet Cleaning in non-core buildings from the main cleaning contract and reserve this for organisations that met the rules of supported workshops i.e. the workforce included at least 50% disabled employees. SLAM, which is an enterprise that is part of the NHS Foundation Trust of Maudsley Hospital, runs a Carpet Cleaning project which exists to help people in contact with local (Lambeth) mental health services fulfil their employment and social inclusion goals. This is achieved by delivering a professional high quality carpet cleaning service and providing work training opportunities for service users to learn work skills, gain self confidence and earn money. The award of this contract to SLAM helps to promote the equality and social inclusion agenda by supporting Lambeth users of SLAM Mental Health service into employment as up to 15 employees will move through the project at any one time. 6
Desired Outcomes Furthering the cooperative ambitions of the council Support the local community, local businesses and local labour Commentary on how achieved Although the procurement could not explicitly prescribe that the delivery must be a cooperative model, the procurement, makes it clear that this behaviour was encouraged. This was incorporated as a scoreable element in the procurement and Bidders were asked to outline how their proposals in value and delivery terms support the ambitions of the Co-operative Council. The Balfour Beatty bid incorporated the following tangible proposals: A re-investment of a share of variable works back into the borough via a Community Development Fund. This could range between 150k- 250k over the life of the contract. The management and allocation of this fund is to be done by the Council and could support local groups and organisations and training for co-operatives and emerging mutuals The option to explore with the Council, the creation of a Community Interest Company 15 staff days per year to provide mentoring and coaching to young residents, commercial advice to mutuals and co-operatives The Interserve approach to supporting Cooperative Council is via their Shop for Change pledge which is the commitment to use Social Enterprise companies as part of their supply chain wherever possible A key element of the evaluation required Bidders to demonstrate how their proposals will sustain and enhance the local economy and create local employment. This was linked to the London procurement pledge. The Balfour Beatty proposal incorporated: The provision of 14 apprentices who will be supported NVQ level over 3 years. Target the creation of 130 new jobs as part of the growth strategy in and around Lambeth Utilising a local security company to provide training and resilience Purchasing cleaning and hygiene products locally Provide work placements each year Advertise jobs locally to help reduce 7
Desired Outcomes Scalability Commentary on how achieved NEET The Interserve Consulting proposal incorporated: Work experience opportunities for 16-17 year olds Sponsoring NVQ and training opportunities Working with local Job Centre Plus via the Local Employment Partnership Agreement to assist long term unemployed by facilitating opportunities through the supply chain Advertise vacancies locally and use best endeavours to recruit at least 65% locally The contract to be signed as part of this procurement has been created to accommodate scalability issues linked to the Council s Accommodation Strategy. All prices have been generated on a per building basis which enables the accurate calculation of cost reductions when a building is removed from scope. Balfour Beatty has proposed that all costs associated with the site, including the overheads and profit. In relation to Cash Collection, the Council has started the implementation of the pay by phone option for parking fines and the G4S proposal allows the removal of costs associated with each parking meter. The contract also allows for growth as it facilitates access by schools for the Cleaning Contract and there are 20 schools accessing this from the start. It also facilitates use by third party including other boroughs and organisations that will deliver services as some of the Co-operative Council Early Adopters service delivery models are implemented. 8
2.2 To illustrate further the successful outcomes of the project, Table 2.2 sets out the series of deliverables across each of the TFM services that form the basis of the procurement Service Table 2.2: TFM Outcomes by Service Proposed Cost pa Employment Provider matters Community outcomes Planned and reactive maintenance (Hard FM) Balfour Beatty 1.55m 20 % savings on current cost of planned maintenance 16 staff (including 4 TUPE) but excluding mobile engineers Committed to 100% retention of TUPE staff. Staff pay rates already exceed London Living Wage and will continue to be 6 apprentices to be supported to NVQ level Community Development Fund to support Cooperative Council endeavours 5 staff days per year, for mentoring, coaching and commercial development. Security (Soft FM) Balfour Beatty 1.7m 20% savings on current cost 64 staff Committed to 100% retention of TUPE staff. London Living Wage to be paid 6 apprentices supported to NVQ level commitment to procure resilience and security training services from a local security firm in Kennington. Gain share to Lambeth, should any of the 4 boroughs named in the OJEU choose to access the contract via Lambeth. Carpet Cleaning (Soft FM) South London and Maudsey (SLAM) 70,000 15 adults per year Payment in line with Permitted Work rules Use of EU sheltered contract route to provide employment for adults receiving support with mental health issues via SLAM Carpet Care project. 9
Service Table 2.2: TFM Outcomes by Service Proposed Cost pa Employment Provider matters Community outcomes Cleaning (Soft FM) Balfour Beatty 1.2m pa 17% savings on current cost 90 staff (not all will transfer as not all schools included) London Living Wage to be paid Committed to 100% retention of TUPE staff. 4 apprentices supported to NVQ level Local supply chain for cleaning and hygiene products. Current 20 schools signed up to access this contract will receive circa 17% savings on their current costs. Project management Cash Collection (Soft FM) Interserve G4S Project based 12% reduction on current ratesaverage 400k p.a 150k pa 8% savings on current cost budget No TUPE transfer No TUPE transfer (staff pay rates already exceed London Living Wage and will continue to be) Committed to advertising all jobs locally; and Committed to recruiting 65% of vacancies from Lambeth residents 3 Process 3.1 The Authority posted the OJEU notice on 1 October 2011. Bidders who submitted Expressions of interest to the OJEU notice were required to complete a Pre-Qualifying Questionnaire (PQQ) in order to ascertain their suitability to participate in the next stages of the programme. On evaluation of the PQQ responses it was decided that 3 respondents per each Lot would be taken forward to the dialogue phase of the procurement. 10
3.2 Detailed proposals were submitted on 23 rd February 2012. All Bidders were provided with detailed feedback on their proposals. This feedback ensured that Bidders were aware of key areas of strengths as well as weaknesses and potential risks within their proposals. It also provided the Authority with the opportunity to refine its requirements where it was clear that the position taken was not achievable in terms of risk allocation and price. At the feedback stage one of the bidders voluntarily withdrew from the process. The last phase of the dialogue process was structured to ensure that areas of concern identified during feedback were discussed and resolved. 3.3 All Bidders responded positively to the dialogue and before the LA issued its formal notice to Close Dialogue on April 18 th 2011, all Bidders were issued with draft Preferred Bidders letters setting out the position they would be required to take before being appointed Preferred Bidder, including confirming that all issues that went to risk and price had been addressed. On this basis the LA issued its Call for Final Tenders on April 27th, 2012 3.4 The final bids were received by the deadline of 21 st May 2012 and a thorough and detailed evaluation of the final proposals commenced. The results and methodology of which are detailed in section 3 of the report. 3.5 Evaluation of the Proposals 3.5.1 The evaluation process was discussed with Bidders and incorporated: A first review of the bids by each workstream supported by the Programme lead A second evaluation, with the core team and wider stakeholders and A moderation session lead by the Project owner A due diligence review by PricewaterhouseCoopers The evaluation of the final bids was broken down into the following weighted category as shown in the tables below. This breakdown had been issued to Bidders at the start of the dialogue process.following the evaluation process Balfour Beatty scored the highest in Lots 1-3 i.e. hard FM, Security and Cleaning. Interserve Consulting scored the highest in Project Management and G4S scored the highest in Cash Collection was found to score the highest overall and this is also reflected in Tables 3.1 to 3.6 below. 11
Table 3.1- Lot 1 Hard FM Evaluation and winning scores Evaluation Criteria Weighting % Balfour Beatty (%) Service Deliverability 60.00 44.20 Finance 17.00 15.00 Partnering 13.00 12.10 Legal & Commercial 10.00 7.20 Total 100.00 78.50 Table 3.2 - Lot 2- Security Evaluation and winning scores Evaluation Criteria Weighting % Balfour Beatty (%) Service Deliverability 60.00 45.60 Finance 17.00 16.20 Partnering 13.00 12.10 Legal & Commercial 10.00 6.60 Total 100.00 80.50 Table 3.3- Lot 3- Cleaning Evaluation and winning scores Evaluation Criteria Weighting % Balfour Beatty (%) Service Deliverability 60.00 47.40 Finance 17.00 16.20 Partnering 13.00 11.30 Legal & Commercial 10.00 6.74 Total 100.00 81.64 Table 3.4 - Lot 4 cash Collection- Evaluation and winning scores Evaluation Criteria Weighting % G4S (%) Service Deliverability 60.00 38.60 Finance 17.00 15.40 Partnering 13.00 5.30 Legal & Commercial 10.00 5.84 Total 100.00 65.14 12
Table 3.5 Lot 5 Project Management Evaluation and winning scores Evaluation Criteria Weighting % Service Deliverability 60.00 42.00 Interserve Consulting (%) Finance 17.00 15.20 Partnering 13.00 9.60 Legal & Commercial 10.00 6.60 Total 100.00 73.40 The following paragraphs expand on the evaluation of each workstream and explain the strengths of the bids from Balfour Beatty, Interserve and G4S. Appendix 1 (confidential and exempt from disclosure) explains the evaluation results for all the Bidders in detail. 3.5.2 Partnering The Partnering workstream focussed on assessing the strength of the bids in terms of the Bidders approach and ability to meet the key Partnering themes such as London Council s procurement pledge, the cooperative council ambitions, stimulating the local economy and providing opportunity for young people through training and/or employment. As set out in Table 1, the key deliverables of the Balfour Beatty proposals showed real strength in their approach to meeting the added value requirements of the council, including, the provision of 14 apprentices; job creation and focussed local recruitment. Additionally the Interserve proposals as set out in Table 1 also demonstrated their commitment to local recruitment as well as the provision of apprentices and work placements. 3.5.3 Finance The Balfour Beatty proposals incorporated a savings that was greater than the15% target set for the evaluation process. Additionally, on the cleaning contract schools will receive circa 17% savings on their current costs Balfour Beatty also submitted excellent commercial offers plus a robust methodology for both Gain Share and Third Party Income which are the contractual mechanism for ensuring that this contract can offer shared services to other London Boroughs and the third sector. The Balfour Beatty proposals also offered a range of continuous improvement over the 5 years of the contract including a 5000 comprehensive cover for certain elements of reactive maintenance, this is 10 times the provision that the Council sought for this aspect. The contract incorporates the Performance Management Framework is built on 50 Key Performance Indicators (KPI) with a range of category A KPIs which attract a financial penalty of 600 for each failure. Should the contractor fail to achieve the same KPI over two months, the financial penalty for that KPI moves to 720 and if 13
it continues for a third month (meaning the rectification plan has not worked), the financial penalty is 900. Where there is persistent failure of the same KPI, the contract legislates for the council to trigger step-in rights and ultimately termination in the unlikely event that this is required. 3.5.4 Legal Both Balfour Beatty and Interserve submitted a robust legal position including acceptance of a strong Parent Company Guarantee that provides both financial and performance guarantees which will help to protect the Authority in the event of the Contractor's financial viability being compromised and/or its continual failure to meet service delivery requirements. In some respect Balfour Beatty legal proposals surpassed expectations, particularly in relation to changes in law that may occur, meaning the Authority is less exposed from a financial perspective and in relation to the amount of low value changes that the Authority can make in a year without incurring a charge. There are minimal legal matters to be resolved at the Preferred Bidder stage and the legal advisors are confident that these can be resolved satisfactorily given the finalising of the Preferred Bidder letter prior to CFT. 3.5.6 Service Deliverability Hard FM, Security and Project management and Cash Collection The Balfour Beatty proposal for the delivery of Security Services combines traditional manned guarding with the investment in technology to provide remote lock and unlock services at some buildings outside the building access hours. It also incorporates the use of a mobile security inspectorate team to provide resilience and cover. The investment in technology has ensured that the Balfour Beatty proposal offers the greatest efficiencies and continuous improvement over the project life. For the Hard FM Lot the Balfour Beatty proposal offer a clear lifecycle maintenance plan with commitments to deadlines. It also offers a Lambeth spend to save financing arrangement including energy initiatives. To support this, the final bid included the actual energy assessments done by Balfour Beatty at 2 core buildings. In relation to the project management lot, Interserve Consulting provided a detailed programme of works for the first 2 years of the contract which will to form the basis for the Authority s capital programme. Additionally they were the only bidder to supply a detailed Project Initiation Document alongside the Project execution Plan for the first 2 projects that will be delivered under the contract. The very detailed project plan provided, demonstrated their capability to manage such projects to completion as all the project management tools were already in place. The G4S proposals for cash collection improves the time in which cash collected reaches the Council s bank account from the current 5 days to 48 hours at the start from 1 st September 2012, with further proposals for reducing this to 1 day. 14
3.6 Proposals and reasons 3.6.1 Based on the results of the evaluation of final proposals it is recommended that :. Balfour Beatty as the preferred bidder for the Hard FM, Security and Cleaning Services, G4S for the Cash Collection Service and, Interserve Consulting for Project Management Services South London and Maudsley (SLAM) for Carpet Cleaning in non-core buildings 4 Comments from Executive Director of Finance and Resources 4.1 The TFM project will achieve significant reductions in cost of provision of service. The total current spend on the contracts is 8.65m p.a. The final bid proposals from Balfour Beatty and G4S achieve a 20% savings ( 1.73m p.a). 5 Comments from Director of Governance & Democracy 4.1 The TFM project team have been advised by Ashfords solicitors throughout the procurement 4.2 The scope of the OJEU notice allows for access to the contract by other public sector partners. 4.3 Following the advertisement in OJEU, Lambeth has invited shortlisted bidders to participate in a Competitive Dialogue process, in compliance with the procedure set out in regulation 18 of the Public Contracts Regulations 2006. 4.4 In considering whether to adopt the recommendations of this report, members are exercising discretion and should therefore have in mind the following principles of administrative law: (i) A decision must be within the Council s powers; (ii) All relevant information and considerations, including the Council s fiduciary duty to the Council Taxpayer, must be taken into account; (iii) All irrelevant considerations, including unauthorised purposes, must be ignored; (iv) A decision must not be irrational in the sense that it is one which no reasonable authority would have come to in all the circumstances. 4.5 The legal basis to appoint the preferred supplier as per the recommendations set out in the report applies. 4.6 At the close of the completive dialogue the Council must enter into a mandatory standstill period the minimum of which must be no fewer than 10 working days starting with the day after the communication of the award decision to all 15
tenderers. The award communication must go to all tenderers notwithstanding the validity of their tender. 4.7 The Council is obliged by the provisions of the Local Government Act 1988 to provide a written explanation to any person who has been excluded from a list of persons entitled to tender for work to the Council or has not been award work for which they tendered within 15 days of a written request so to do. 4.8 The Council s Constitution requires that all decisions which require expenditure in excess of 500,000 or significantly affects two or more Council Wards must be published in the Forward Plan. It also requires that in relation to the award of contracts of a value of greater than 100,000 (all non-key and key decisions) are to be subject to the following consultation: Pre Decision consultation: circulated to members specified in the Constitution who are given 5 days to comment prior to the decision being taken under the Scheme of Delegation this process is sometimes called pre-notification Post-Decision Consultation: once the decision has been taken the report is to be published on Officer Decisions where Key Decisions can be requested to be called in under scrutiny procedures. 5 Results of consultation 5.1 Detailed consultation was carried out with Members, Senior Leadership Board, Departments, Strategic Asset Management Group, Staff and the Trade Unions prior to and throughout the procurement. Update reports were formally presented to Members at the following meetings; July 2011 Sept 2011 Dec 2011 April 2012 Cabinet lead member - endorse the procurement process Cabinet lead member agrees the desired strategic outcomes. Cabinet lead member update on procurement. Cabinet lead member - agrees the London Living Wage Variant 5. 2 The unions have been consulted throughout the programme, with the initial engagement commencing prior to the issue of the OJUE in June 2011. The council has applied the duty of Best Value to the basket of support services making up the Total FM procurement project which are all currently provided by external contractors, that on the basis of value for money the council will not be seeking to internalise the currently outsourced services. This is based on market intelligence and regional benchmarking which show we have limited business expertise, management capacity or operational experience in these services. 5.3 A union briefing was provided to the trade unions on 26 th September 2011, in February 2012 and April 2012 at the Corporate Consultative Forum. The Trade Unions have not formally raised any issues pertaining to the procurement, 16
other than supporting the principle of paying London Living Wage to contracted staff. 6 Organisational implications 6.1 Risk & Opportunities 6.1.2 Opportunities The TFM project offers ongoing opportunities:; Lambeth to secure up to in excess of 1 million in savings over 5 years. Gain Share and Third party income opportunities Comprehensive cover for reactive maintenance 6.1.3 Risks 6.1.4 The main risk at this stage is the mobilisation of the new contractors to begin service delivery on 1 st September 2012. Risk Mitigation Status The transition to new service provider Detailed implementation and mobilisation plan managed by the Head of Business Management & FM, in conjunction with the Head of Asset Strategy and the three contractors. For the Hard FM Service Balfour Beatty will commence and early Works Contract on July 1 st 2012 and this will assist in mobilising the new contract. GREEN Risk is weighted towards contractor if mobilisation is not achieved and there are financial penalties (Liquidated Damages ) will apply 6.2 Equalities impact assessment: The Total FM Equalities Impact Assessment was presented to the council s EIA board on 23rd November and was commended on the high quality of the assessment. The conclusions of the stage 1 EIA are; 17
Service implications Through completing a stage 1 EIA the following potential adverse service impacts have been identified: 1. Where a contractor may be interacting with end users they will be expected to access the council s translation and interpretation service if and when required. 2. Contractors should ensure that staff are available of either gender to clean / maintain single sex areas. 3. Contractors should ensure that all communications with end users (e.g. notifications of works) are in plan English and inline with the council s communication toolkit to ensure accessibility. 4. Contractors should ensure that disabled access to facilities is maintained before other access routes. 5. Contracted organisations will be aware of designing and maintaining spaces for people with differing needs, e.g. faith / reflection spaces, access requirements for those with different abilities. Community benefits and workplace implications 1. Those employees who do not speak English to the ideal standard will receive English language classes. 2. Apprenticeships and employment opportunities will be directly marketed to sector under-represented groups and young people. 3. Sheltered workshops for organisations where over 50 per cent of the workforce is disabled. 4. The implication of London Living Wage will be requested and assessed based on the extra cost and community benefits. These issues were subsequently crafted into the bid documentation and issued to all bidders as part of the Invitation to Submit Detailed Solutions. Bidders have responded positively to this and equalities form a core part of the bids received. 6.3 Community safety implications: There are no adverse community safety implications in this proposal 6.4 Environmental implications The TFM contract brings a number of environmental and sustainability improvements such as increasing recycling and reducing carbon emissions. 6.5 Staffing and accommodation implications: The TFM contract will improve cleaning, security and maintenance aspects for our core and non-core buildings. This will be managed through the performance management framework which has a number of key performance indicators for these areas. 6.6 Any other implications: None. 18
7. Timetable for implementation The Table below illustrates the key dates to full service commencement on 1 st December 2011. Table 3 Cabinet report and decision July 9 th 2012 Standstill Period 10th July2012 22nd July 2011 Services Contract Signature and Commencement Date Implementation/Transition Period Full Service Commencement Date 23 rd July 2012 23 rd July to August 31st 1 September 2012 End of Report Documents to review Appendix 1: Part 2 19