Highways Maintenance Contract Commissioning Project Market Engagement Events March 2017

Ambition Highways, Transportation and Waste ambition is to ensure that people can travel safely, efficiently and pleasantly throughout the County. Furthermore it should maximise the lifespan and minimise the lifecycle costs of the highway and its assets. Highways Maintenance Contract Commissioning Project Market Engagement Event 21/03/2017

Outcomes Fewer people killed or seriously injured on Kent’s roads. Customer satisfaction by providing ‘the right services in the right way for the right people’. Maximising lifespan and minimising lifecycle costs of the highway and its assets, by embedding asset management principles into everything we do. Cost effective statutory and discretionary services by commissioning well and being commercially astute. Zero waste to landfill by maximising the use of waste as a resource. We create opportunities for apprenticeships and sustainable employment for vulnerable young people in Kent to enhance skills, life chances and well-being. Growth and economic prosperity through an efficient highway and transport infrastructure. Ensure the service meets the needs of any future devolution agenda. Meet the priorities outlined in the KCC Environment Strategy to protect and enhance our natural and historic environment. Maximise inward investment into Kent. Retaining a motivated workforce with high levels of job satisfaction. The service is delivered through an efficient and seamless team that does not duplicate roles, is constantly looking at ways to improve the whole end to end customer. Challenge inequality, discrimination and disadvantage for everyone who lives in, works in and seeks to uses our services. Highways Maintenance Contract Commissioning Project Market Engagement Event 21/03/2017

Objectives of Market Engagement The Authority wants to listen to the market to help inform it before it makes the right decision for the future strategy for these services. This is a two way engagement event for both parties to understand the services under consideration. The Authority is keen to improve its service to customers but has does have a decreased budget. Key points Discuss the services under consideration to determine how these could be packaged for future contracts Discuss the pro’s and con’s of the Authority’s options Discuss the key risks in service delivery and understand how these can be best managed. Please remember this is not an opportunity for a sales pitch! Highways Maintenance Contract Commissioning Project Market Engagement Event 21/03/2017

Description The Authority’s current Highways Term Maintenance Contract (HTMC) is with Amey: It commenced 1st September 2011 and is due to end on the 31st August 2018 following the agreement of a two year extension. Current annual spend within the contract (15/16) was worth approximately £37m. Average spend over the contract period has been £45m per annum. Delivers a number of key services on behalf of the Authority’s duty to ensure the highway is safe for Kent residents. Highways Maintenance Contract Commissioning Project Market Engagement Event 21/03/2017

Project Aims and Objectives The scope of the project is to evaluate current contracts and propose a delivery model that meets the outcomes of the HTW business. It will need to ensure continuity of these delivery services beyond the 31st August 2018, when its current large scale contract expires. Understanding its deliverables, the business will propose a model that can seek efficiencies and ensure value for money for its customers. Put in place new mechanisms for the ongoing service delivery post August 2018. Highways Maintenance Contract Commissioning Project Market Engagement Event 21/03/2017

Commissioning Cycle Review the HTMC and develop a delivery model that meets the business’ needs Potential delivery models Contract Extension with Amey Procure a similar large scale contract with another provider Develop our delivery model and split up our contracting arrangements with specialist providers Highways Maintenance Contract Commissioning Project Market Engagement Event 21/03/2017

What have we done so far? ‘Analyse’ phase commenced from September 2016 Held workshops for all HTW staff to understand their experience of the contract Local Authorities - face to face meetings and via teleconference to understand their contractual arrangements Identified and evaluated 7 options across 5 criterion OBC presented at the GET Portfolio board Approval to close the ‘Analyse’ phase

In scope Highway Term Maintenance Contract Resurfacing Contract Winter Service Provision Drainage Maintenance and Capital Projects Structures Maintenance Patching and Small Resurfacing Services Surface Treatments Emergency Response Highway Schemes Delivery Resurfacing Contract Highways Maintenance Contract Commissioning Project Market Engagement Event 21/03/2017

Out of scope Street Lighting Services WAMS Contract TESC Consultancy Services Related services provided by District and Parish Councils – however there will be scope in the OJEU notice should this become a future requirement Asset Management Approach Landscaping Services Highways Maintenance Contract Commissioning Project Market Engagement Event 21/03/2017

HTMC Spend Breakdown 15 – 16 Highways Maintenance Contract Commissioning Project Market Engagement Event 21/03/2017

HTMC Job Breakdown 15 - 16 Highways Maintenance Contract Commissioning Project Market Engagement Event 21/03/2017

Key Risks Winter Service Contract Aggregation Emergency Response Budget reducing year on year Prices expected to increase Encouraging SME’s to take more responsibility WAMS – Asset Management and Orders Dependency of other contracts Highways Maintenance Contract Commissioning Project Market Engagement Event 21/03/2017

Consideration Highways Maintenance Contract Commissioning Project Market Engagement Event 21/03/2017

Consideration Highways Maintenance Contract Commissioning Project Market Engagement Event 21/03/2017

Project Timescales ‘Analyse phase’ Closed ‘Plan phase’ March 2017 – March 2018 Market engagement – March 2017 Evaluation of the shortlisted options Detailed specification March 2017 – September 2017 Development and Approval of FBC - August 2017 Sign off of the business case – September 2017 Secure corporate approvals (SCB, etc.) - August/September 2017 Procurement Commences (if approved option) - October 2017 Implementation of the Full Business Case – March 2018 Approval and award of the agreed option – March 2018 Highways Maintenance Contract Commissioning Project Market Engagement Event 21/03/2017

Project Timescales ‘Do phase’ April 2018 – September 2018 Contract Award – April 2018 Mobilisation – April to September 2018 New delivery arrangements/contracts start – 1 September 2018 Project Closure – December 2018 Highways Maintenance Contract Commissioning Project Market Engagement Event 21/03/2017