Transforming London’s Highways Management Capital Ambition London Councils OGC LoTAG

Need for Change The whole supply chain is facing challenges TfL working with the Boroughs has identified opportunities for savings across London in terms of the highway maintenance and management service. TfL are working with LoTAG, OGC, Capital Ambition, and London Procurement Heads

Work Streams Supplier Relationship Development Phil Snowling Project Sponsor Martin Smith Chief Executive LB Ealing Project Board East London Solutions Kimberly Sharp/Chris Tunstall Supplier Relationship Development Phil Snowling Common Specification and Contract Conditions Steven Dennis TfL Highway Systems Collaboration E-Auctions Zerrin Lovett Head of Supplier Engagement OGC Work Streams

Supplier Relationship Development Supplier Relationship Development is the process of improving existing contracts for the mutual benefit of both suppliers and customers. Sponsored by Capital Ambition, previous work examined suppliers in the waste and social care sectors Working with two highways contractors in London as a pilot

Supplier Relationship Development Questionnaires sent to Boroughs asking them to rate their supplier experience Performance, Relationship, Service delivery, Billing etc. Sharing and comparing these with suppliers experience of Boroughs Boroughs and Suppliers are nominating negotiating teams

Results from Questionnaire – Borough Highlights and other points No discounts offered for prompt payments by Boroughs Little use made of shift/extended hours to get work done Wide range of opinion about visibility/transparency of costs & charges – 5 x Boroughs scored <=2; 4 x Boroughs scored => 7

Next Steps Negotiation Planning meetings 1-1 Interviews Sept 2010 Design & Issue CAF Oct Nov Supplier 1-1 interviews; “Reverse “ CAF Dec Feedback “Reverse” CAF Jan 2011 Feb Mar Analyse CAF; Identify Negotiation Areas/Teams CAF = Contract Assessment Framework

SRD outcomes Strengthen existing relationships New dialogue with clients Develop commercial fitness Improve infrastructure and process Deliver best value services Develop client facing strengths Prepare for collaboration

Common Specification and T&Cs Key theme through all of the discussions Widespread support Build on the previous LoTAG work in reducing the number of specifications across London Full time joint TfL/Borough team established We need secondments from Boroughs to help develop the new contracts

Common Specifications and Contract Conditions Structure Team Borough Technical reps Borough Commercial / Procurement reps Steven Dennis David Baker Common Specification TBA London Borough Contract Conditions Andrew Cubitt Contract & Procurement Rep Technical. TfL/LB

Common Specification and T&Cs Champions in each Borough being indentified Reviewing copies of existing contracts to identify areas of best practice Challenging technical specifications Engaging with the supply market via HTMA Learning from others

Common Contracts Target date April 2013 earliest Sections may be complete earlier Available to Boroughs, City of London and TfL New contracts based on cost not price Provision for client supplied materials Geographic split

East London Solutions Havering and Barking & Dagenham Pathfinder project To try and achieve some savings prior to implementation of the pan London contracts East London Solutions (ELS) Group is looking to develop an interim common specification for contracts going out from 2011 onwards within their area.

Highway Systems Commonality The three dominant systems Confirm, Symology and Exor. Looking at the software systems in use by the boroughs and any commonality. Looking at opportunities to allow data transfer between existing highway management systems. Suppliers biggest problem

E-Auctions For commonly used highway maintenance commodities and services Aggregate demand across London and to create competition through the use of e-auctions. The first stage of the project is in two phases: Electrical testing of street lighting, illuminated signage and bollards.   Material purchasing such as street lighting lamps and signage, concrete/ natural kerbs and flags

Work Themes in Progress Governance and Collaboration Developing a new structure Standardisation Developing a common way of working Culture Change New contracts require a new way of working

Dana Skelley Director of Roads Transport for London London Streets dana.skelley@tfl.gov.uk Thank You