Introduction to empa Frameworks June 2010

Alan Coole Development Director Paul Windle Framework Development Manager Dave Lowe Vbd Consultants

Scape System Build Ltd is: Local Authority Controlled Company Trading Company for CLASP EU Procurement Directive Contracting Authority & Central Purchasing Body Shareholders: Derby City Derbyshire Gateshead Nottingham City Nottinghamshire Warwickshire

Consultancy –New Build – Scape Technology –Refurbishment advice Strategic Procurement –New build projects –Maintenance programmes –East Midlands Property Alliance managing agent –Design Team Framework

Scape and empa REIPScape empa LA managing agent empa Executive

Sub-Region 1 1. Bolsover DC 2.Derby City 3.Derbyshire CC 4.Derbyshire Dales DC 5.Erewash BC 6.High Peak BC 7.NE Derbyshire DC 8.Sth Derbyshire Sub-Region 2 1. Ashfield DC 2.Broxtowe BC 3.Newark & Sherwood 4.Nottingham City 5.Nottinghamshire CC 6.Notts Police Sub-Region 3 1.Lincolnshire CC 2.Nth Kesteven DC 3.Lincoln City Sub-Region 4 1.Lincolnshire CC 2.South Kesteven DC 3.South Holland DC 4.Rutland CC 38 of 46 authorities participating 10 authorities have projects in progress other public bodies are looking to join Current Members and Participants Sub-Region 5 1. Blaby DC 2.Charnwood BC 3.Daventry BC 4.Harborough DC 5.Hinckley & Bosworth BC 6.Leicester City 7.Leicestershire CC 8.Melton BC 9.NW Leicestershire DC 10.Oadby & Wigston BC Sub-Region 6 1. Corby BC 2.Daventry DC 3.E Northamptonshire DC 4.Kettering BC 5.Northampton BC 6.Northamptonshire CC 7.S Northamptonshire DC 8.Wellingborough BC

Executive Board Chair/Vice Chair Working Group Leaders Alliance Manager Working Group Theme Working Group Theme Scape Development/Management/Facilitation New Procurement Convergence of existing procurement Other Themes Training Regional Developments How empa Fits Together.

empa’s activities delivered by Scape Large projects framework - £7.5 - £30m - Live Intermediate framework - £2 - £7.5m – Live Minor Works framework - £10K - £500K - £2m – Live Repairs & Maintenance initiative – Autumn 2010 Strategic Asset Management – Commenced Design & Technical services – Jan 2011 FM – Trial in operation Training academy Regional supply chain development

LA Scape New Framework National Collaborations AA How do the Delivery Contracts Work? Scape Analysing, Refining, Procuring, Delivering Services to Local Authorities through collaborative developments.

Issues to resolve Costs Need for savings Costs increasing High aspirations £ time Need for savings Increasing costs of construction

Solution enhanced by frameworks - Advantages –Earliest contract involvement –Continuous improvement on all issues –Wider agenda introduced Evidence… -Early empa experience, indicating +6% savings -Low/zero procurement costs

Solution enhanced by empa –Scale - Flow of projects –Providing an infrastructure for management –Common approach to the market –Reduced costs of procurement –Reaching the supply chain

Solution enhanced by empa Training – Skills academy –Developing the client side –Improving contractors –Skills agenda Economic and social sustainability –Local delivery –Supply chain development

Framework Contractor Selection OJEU Compliant 2-stage Tender In accordance with the Public Contract Regulations 2006 Wide based selection panel Approved process by empa and Scape

Contract Forms: Scape Framework One - NEC Option C Intermediate Framework - NEC Option C Minor works upper band - NEC Option C Minor works lower band - NEC Short version

Intermediate operates region wide Minor works in sub regions

Intermediate Framework Wates Kier Willmott Dixon Available Now

Minor Works Framework BANDSub-Regional Manager Lower Value Band £10k - £500k Upper Value Band £500k - £2m North West Sub-Region 1 Scape G F Tomlinson Herbert Baggaley Ashe Interserve Mansell G F Tomlinson Morgan Ashurst Ashe North Central Sub-Region 2 Paul Monaghan and Paul Bottrill G F Tomlinson Robert Woodhead Herbert Baggaley Ashe Interserve Mansell G F Tomlinson Morgan Ashurst Ashe North East Sub-Region 3 David Turner Robert Woodhead Langwith Mansell Lindum G F Tomlinson Morgan Ashurst Mansell East Sub-Region 4 David Turner Robert Woodhead Langwith Mansell Lindum G F Tomlinson Ashe Mansell Central Sub-Region 5 Nitin Patel and Jason Kennedy G F Tomlinson Herbert Baggaley Ashe Interserve Mansell G F Tomlinson Morgan Ashurst Ashe South Central Sub-Region 6 Garry Pyne Ashe Interserve Mansell J Tomlinson Jeakins & Weir Morgan Ashurst Ashe Mansell

Scape/empa Frameworks Accessible by any public sector organisation Project values as the bands Satisfies requirements of EU procurement Directives Managed arrangements - No need to tender principal contractor – protocols for selection

Principle Features of the Framework Early engagement of Customer and contractor Simple process to follow Risk management Cost control and ordering procedures Open book Performance monitoring procedures

Contract Forms: Scape Framework One - NEC Option C Intermediate Framework - NEC Option C Minor works upper band - NEC Option C Minor works lower band - NEC Short version

Contractor’s commercial interest Being allocated the next project Protect their reputation – special measures Avoid a loss – make a modest profit Minimise the design liability that is retained in the company

Preliminary considerations Feasibility stage- is the project doable Pre construction stage- reaching a point of commitment Construction phase Project Process Process map schedule 5 Gateway process Contractors pre construction activities schedule 10 Specification of design services schedule 9

Construction Preconstruction Feasibility

Strategies on Supply Chain Tendering Customer to make their policies clear. Contractor required to deliver best value Contractor’s methods of operation with regard the supply chain part of their submission Exercise judgement around…. size, complexity, availability in market, alternative procurement methods. Allowances for the unforeseen or ill defined

Risk Management There is risk for the client therefore: –Identify it –Evaluate it –Accept it –Report it –Manage it

Cultural Issues to Address! Seeking to collaborate Organisations with different cultures Changed relationships Challenge for Leaders

empa REPAIRS & MAINTENANCE THE DIALOGUE PROCESS 30 th June 2010 David Lowe Value By Design Limited

THE PROCESS Short-listing from PQQ Lot 1Lot 2Lot 3Lot 4Lot 5Lot 6 Apollo Property Services Group XX XXX Derby Homes X Derbyshire County Council XX Enterprise Managed Services XXXXXX FirstShire XXXXXX Herbert Baggaley Construction XXXXXX J Tomlinson XXXXXX Jeakins Weir XXXXXX Kier Support Services XXXXXX Lindum Group XX Oliveti Consortia X Robert Woodhead X Rok Building XXXXXX Seddon Property Services XXXXXX Willmott Dixon Partnerships XXXXXX

THE PROCESS PQQ ISOSISDS ITTDIALOGUE AWARD Bidders The ‘funnelling’ process

THE PROCESS Reasons for Dialogue The need for work/partners is known The final specification and solution is unknown Reduce expenditure of many Bidders through funnel process Allow high levels of client/stakeholder engagement Develop appropriate solution (s) with Bidders through dialogue.

THE PROCESS R&M FRAMEWORK CONTENTS Some clients will be offering up work to start on commencement of the Framework. These will be bid through the dialogue and Final Tender processes. Other work will may be awarded through mini competition once the Framework is operational. The dialogue must consider the potential for these elements, developing appropriate solutions to be called off in the future. (Subject to dialogue)

THE PROCESS ITPD – Invitation to Participate in Dialogue Guidance & information applicable through the dialogue phase. Details evaluation criteria of dialogue phase Provides outline details to Framework Agreement Key topics of evaluation developed through the dialogue phase.

THE PROCESS Outline Specification Details basic requirements of solutions. Indicators of existing workloads and anticipation of future work. All solutions must comply with this, variations and solutions themselves are to be reviewed and discussed in dialogue meetings. Changes to Output Specification will be universal between Bidders. Existing detailed information available within Dataroom. Details and booking procedures included here.

THE PROCESS Rule of Engagement Processes and etiquette for conducting dialogue meetings with clients &stakeholders Bidders with 1 or 2 Zones will get 1 ½ hours at initial dialogue meeting. Those with 3+ will get 3hours. Questions to be issued to SCAPE prior to meetings wherever possible.

THE PROCESS ISOS – Invitation to Submit Outline Solutions First round of dialogue quality evaluation and visits to establish quality standards and systems. Evaluation broken down into: A.Meeting Authorities’ requirements B.Quality of proposed personnel and interface proposals with Authority C.Commercial and Legal D.n/a E.Reference projects and site visits Includes written submission and subsequent interview Bidders must pass minimum standards

THE PROCESS ISDS – Invitation to Submit Detailed Solutions Second round of dialogue development of methodologies and processes to suit clients. Evaluation broken down into: A.Meeting Authorities’ requirements B.Quality of proposed personnel and interface proposals with Authority C.Commercial and Legal D.Financials E.n/a Includes written submission and subsequent interview Bidders must pass minimum standards

THE PROCESS Dialogue Presentations 1.Introductions and reiteration of the procedures for elimination of Qualified Bidders by the Authority 2.Qualified Bidders brief verbal introduction to their Team and contents of their presentation 3.Qualified Bidders presentation on 1.Round 1 – Outline Solutions 2.Round 2 – Detailed Solutions 4.General questions 5.Qualified Bidders questions Evaluation team will review marks based on these interviews

THE PROCESS Marking weighting in Dialogue CategoriesISOSISDS A25% B20% C15% Dn/a40% E n/a Total100%

THE PROCESS DIALOGUE Ultimate aim of the process is to identify suitable solution (s) and demonstrate skills, capacity and basic affordability. Relies on meeting clients & stakeholders to identify & create solutions. Better solutions more likely to attract more clients. Both ISOS & ISDS end with written submission and interview/presentation – opportunity to demonstrate solution and present team. Only shortlisted Bidders invited to submit tenders

THE PROCESS DIALOGUE Ultimate aim of the process is to identify suitable solution (s) and demonstrate skills, capacity and basic affordability. Relies on meeting clients & stakeholders to identify & create solutions. Better solutions more likely to attract more clients. Bidders responses through the dialogue may instigate amendments to documents, these will be updated & re-issued to all Bidders. Only commercially sensitive information will be withheld. Only shortlisted Bidders invited to submit tenders

THE PROCESS FINAL TENDER Shortlisted Bidders invited to submit final costs and solutions to Scape based on dialogue process. May maximum of two solutions from each Bidder. Final evaluation based on MEAT criteria, i.e. quality cost split.

THE PROCESS PQQ ISOSISDS ITTDIALOGUE Identify appropriate track record/ skills Set minimum quality standard and outline solutions for framework Identify detailed solutions, method statements & cost models Identify EMAT solution based on detailed solution (s) & cost models 4 YEAR FRAMEWORK

THE PROCESS DIALOGUE Process allows Bidders to input into commercial/legal/ specification aspects of the work. Within the limits specified by the documents Bidders may offer up and discuss solutions that will provide greatest efficiency and service to Clients.

Date Issue ITPD28 th June 2010 Dialogue meetings round 1w/c 12 th & 19 th July 2010 Receive Outline Solution responses29 th July 2010 Site & office visitsUpto 13 th August 2010 Bidders presentation6 th August 2010 Short listing Bidders & Issue Detailed Solutions17 th August 2010 Dialogue meetings Round 2Upto 31 st August 2010 Receive Detailed Solutions responses6 th September 2010 Bidders presentationsw/c 15 th September 2010 Shortlisting Bidders (if applicable) & issue final tender1 st October 2010 Receive ISFT responses26 th October 2010 Notify tenderers of contract award decision18 th November 2010 "Standstill" periodNovember 2010 Award ContractDecember 2010 THE PROGRAMME

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