Infrastructure, Projects and Contracts Committee
21 May 2015
Total Facilities and Property Management – Award of Contracts.
Report by Director of Place
Purpose:
To consider the award of the contract for the Total Facilities and Property Management
project based on the results of the evaluation of the tendered bids.
Recommendation:
1. That the Infrastructure Property and Contracts Committee delegates authority to the
Head of Property in consultation with the Chair of the Committee to:
i.
Clarify and confirm commitments made in the preferred bidder’s final
tender in relation to the contract and the framework agreement; and
ii. Finalise and conclude the contract documentation for the contract and
the framework agreement.
2. That the Infrastructure Property and Contracts Committee awards a contract for
Total Facilities and Property Management services for seven years with a provision
for one or more extensions up to a maximum of a further three years to the
preferred bidder subject to commitments made in the preferred bidder’s final tender
being clarified and confirmed to the satisfaction of the Head of Property in
consultation with the Chair of the Committee;
3. That the Infrastructure Property and Contracts Committee award a framework
agreement for Total Facilities and Property Management services for four years to
the preferred bidder subject to commitments made in the preferred bidder’s final
tender being clarified and confirmed to the satisfaction of the Head of Property in
consultation with the Chair of the Committee.
Key Points
A.
In February 2014 the Policy and Resources Committee voted unanimously to adopt
a Total Facilities and Property Management (TFPM) approach as its preferred
operating model for the future sourcing and delivery of property related services.
B.
Delegated authority was granted to the Director of Place to commence a
procurement exercise to select a commercial partner to deliver a TFPM solution to
the Council, subject to a final Award Report being presented to Committee.
C.
The procurement exercise has now been completed and the award of the contract
to the preferred bidder is recommended based upon the results of the evaluation of
the final tendered bids.
D.
The award of the contract to the preferred bidder is also recommended on the basis
that its solution fully meets the Council’s requirements, including the need to make
substantial savings in line with the Medium Term Financial Plan.
E.
Information provided by bidders as part of their final tenders is submitted to the
Council on a commercial in confidence basis. For this reason, the detailed
comparison of final scores, including the financial appraisal, is set out in Appendix
B, which is exempt from publication
Context
1.
The advantages of the TFPM approach were set out and agreed by the Committee
in February 2014. Briefly, these are: i.) the opportunity to realise significant savings
by rigorously market testing the cost of delivering a wide range of property related
services; ii.) the opportunity to realise significant savings by re-structuring propertyrelated services so that they are delivered in the most cost effective manner; iii.) the
opportunity to realise management efficiencies and advantages by reducing the
number of contracted-out property related services from more than seventy, to just
one; and iv.) to realise management efficiencies over the lifetime of the contract by
partnering with a leading facilities and property services provider that is suitably
incentivised to work with the Council to add value to the property portfolio and / or to
jointly identify opportunities to make further savings.
2.
The procurement of the TFPM solution was undertaken using the Competitive
Dialogue procedure between 07/07/14 and 20/04/15. Three firms were invited to
participate in the Competitive Dialogue process. These were: Amey, Bouygues and
Cofely. One firm, Amey, pulled out of the process in December 2014, citing
resource pressures as a result of winning additional work elsewhere.
3.
The two remaining firms, Bouygues and Cofely, participated in an initial round of
Competitive Dialogue between 06/11/14 and 18/12/14 and were invited to submit
initial bids on 12/01/15. These bids were evaluated and scored by the Council’s
project team and comprehensive feedback was provided to both bidders. Following
this, both bidders were invited to take part in a second round of Competitive
Dialogue between 09/02/15 and 30/03/15 and were invited to submit final bids on
30/03/15.
4.
Final tenders were submitted on 20/04/15 and were evaluated by the Council’s
project team between 21/04/15 and 11/05/15. The results were approved by the
TFPM Programme Board on 12/05/15.
Scope of Services
5.
The TFPM project encompasses the following service areas
Energy Procurement**
Post Room / Print*
*Not commencing from the start
date of the TFPM contract
** Pre Priced Variation
Stakeholder Engagement
6.
A comprehensive programme of stakeholder engagement has been undertaken
since February 2014. This has included the establishment of a staff focus group to
enable staff working in the relevant service areas to discuss the project directly with
senior managers, regular updates to the Place Directorate Consultative Group,
attendance by senior managers at service team meetings to discuss the project
directly with staff, briefings by senior managers to union officials, and dedicated
pages on the RBK intranet including Frequently Asked Questions and copies of
presentation materials used at focus group meetings.
TUPE
7.
The transition to the TFPM model will involve a transfer of staff working in the
service areas set out at paragraph 5 above to the new service provider in line with
the Transfer of Undertakings (Protection of Employment) Regulations 2006 as
amended by the "Collective Redundancies and Transfer of Undertakings (Protection
of Employment) (Amendment) Regulations 2014".
8.
32 RBK staff working in property related services and 67 staff currently employed
by third party contractors have been identified as being in scope of a TUPE transfer
to the TFPM service provider. All staff identified as being in scope of a TUPE
transfer have been notified and invited to discuss the issues at the Staff Focus
Groups.
9.
Formal consultation with staff identified as being in scope of the TUPE transfer will
commence once contracts have been signed. The consultation will be undertaken in
line with the relevant legislation and existing RBK HR Policy.
Timescale
10.
The table below set out key activities and dates from committee decision through to
go live on 1/10/15.
Activity
IPC Committee
RBK Call in period Starts
RBK Call in period Ends
Issue Standstill Letters
Standstill Period Ends
Communication Decision to staff
Finalise Contract Documents
Notify Unison and Chair of DCG
Contract Signature
Mobilisation Period Starts
TUPE Consultation Period Starts
TUPE Consultation Period Ends
Mobilisation Period Ends
Services Commencement
Date
21/05/2015
29/05/2015
04/06/2015
05/06/2015
15/06/2015
16/06/2015
26/06/2015
29/06/2015
30/06/2015
01/07/2015
01/07/2015
14/08/2015
30/09/2015
01/10/2015
Legal Implications
11.
In compliance with the requirements of CSOs 1-19 of the Council’s Contract
Standing Orders the procurement of the TFPM contract has been undertaken in
accordance with the Public Contracts Regulations 2006 (as amended) by way of the
competitive dialogue procedure.
12.
In accordance with Regulation 18(24) of the Public Contracts Regulations the
Council concluded dialogue on the basis that it had identified one or more solutions
capable of meeting its needs. The Call for Final Tender (“CFT”) was issued on 30th
March 2015 and final tenders received on 20th April 2015. The Council proceeded
to assess the tenders received and has identified the bidder who has submitted the
most economically advantageous tender on the basis of the award criteria specified.
As stated in the main body of this report the Council will issue standstill letters on
5th June 2015 providing the unsuccessful bidder with appropriate feedback in
accordance with the Public Contracts Regulations. The Council has entered into the
Preferred Bidder letter with the Preferred Bidder, who along with the other bidder,
was provided with the opportunity to review the letter which was issued as part of
the CFT documentation. The Council will proceed in line with Regulation 18(28) to
clarify, where necessary, aspects of the Preferred Bidder’s tender and confirm
commitments contained in the tender.
Risk Assessment
13.
Making this decision now, allows the Council to achieve its stated deadline of
making the change to a TFPM approach to service delivery on time from the 1st of
October 2015, when existing contracts fall away.
14.
It also supports the achievement of saving targets identified in the MTFP for the
current fiscal year..
15.
Not making the decision now, risks potential disruption of property services should
existing contractors be unwilling to extend services and a reduction in savings
achievable in the current fiscal year.
Resource Implications
17. The Council has budget reductions in the MTFP. The contract price submitted by
the preferred bidder exceeds these budget reductions. These are detailed in Part B
of this report
18. The Preferred Bidder has proposed a Gain-share mechanism that incentivises them
to generate additional income and service efficiencies whilst generating a benefit to
both parties. Through their bid the Preferred Bidder has detailed strategic proposals
that could generate additional savings/income above the guaranteed
savings/income embedded in the fixed contract price. All proposals are subject to
Council approval.
Equalities Impact Assessment
21.
The Equalities Impact Assessment was undertaken as part of the original report to
committee in February 2014. This has been reviewed and revised to reflect the
contractual requirement on the Service Provider to fully comply with the Equalities
Act 2010 and to support the Council in the discharge of its duties and
responsibilities under the Act.
Background papers – held by Shirin Georgiani 0208 547 5510
[email protected]
•
•
Report to the Policy and Resources Committee, 14 February 2014
Revised Equalities Impact Assessment