National Procurement Strategy and PFI in the Fire & Rescue Service Terry Brewer Interim Chief Executive - Firebuy _____________ Ken Knight LGA Advisor

AGENDA AGENDA  Introduction  Firebuy  NPS  PFI Property Helicopters  Procurement Pack

FIREBUY/ NATIONAL PROCUREMENT STRATEGY

What is Firebuy?  Firebuy is the national procurement body which will oversee the National Procurement Strategy for the FRS.  It will focus on procuring fire service-specific equipment, in particular, appliances, clothing and respiratory protection equipment.  It will be doing the technical investigations and standard-setting, develop output-based specifications and setting up call-off contracts for FRAS around the country.  It will also take the lead in subsequent contract management and service level monitoring.

Firebuy – Current Position  To be established as a company limited by guarantee, likely to be an executive NDPB from 3 April 2006  6 Executive Directors and a Chair  3 ‘ex officio’ Directors – LGA, LFEPA, CFOA  CEO and ODPM will be observers  Executives and Chair – appointed via OCPA rules  Adverts for Chair & Execs – Closing date 30/11  As an NDPB it will report to Ministers, as a company it will report to its shareholders the FRAs.  Interim company in place

Firebuy Structure FIRESA

Firebuy - Funding  2005/06 – Interim Firebuy funded by ODPM via LFEPA  2006/07 & 2007/08 – ODPM funded  2008/09 onwards – subject to ODPM / LGA / CFOA discussions

National Procurement Strategy  Launched by Minister at fire show 2 November  Covers 3 year period

Who would do what?

National Procurement Projects  Integrated Clothing Project  Vehicles and Operational Response Equipment  Bluelight Database  Fireground Radios  Smoke Alarms  Insurance  Risk programme  Manual Handling  Disposal Services Agency  Multigyms / Fitness Equipment  CFOA - PFI Fire Stations / Helicopters

Other Issues  Already working with Civil Resilience to procure new dimension equipment and long term management  Have to work with the team for the proposed Fire Research. Academy and Fire Centre of Excellence to avoid duplication of effort.

PFI in the FRS  Round 5  Property  Helicopters

FRS PFI Round 5  Bids received  Seven in all  Largely accommodation–based  One non-accommodation proposal  Some proposals joined-up or suggest joining-up  £150 m PFI credits available

BIDS BIDS  Staffordshire  2 Community Fire Stations  4 Response bases  Refurbishment of existing station  Cumbria (in conjunction with Lancashire & Merseyside)  6 stations; Carlisle Workington Penrith Alston Lazonby Patterdale  Gloucestershire  Two new 4 bay fire stations to replace single 6 bay station  Cheltenham – 3 bay community fire station

BIDS  Lancashire and Merseyside (in conjunction with Cumbria)  Relocation of 13 fire stations (9 new & 4 refurbished) inc. community facilities  Operational Resource centre in Merseyside  LFEPA – Fire Stations Project  Refurbish 13 fire stations in London area  Provision of 4 new stations  National- Airborne Rescue Project  Specialist air support rescue service  National Property Partnerships for the Fire and Rescue Authorities

National Property Partnership  Joint Gloucestershire/ London Bid is aimed at providing an integrated national/regional framework model for tackling investment in new and refurbished fire stations or other accommodation.

Key Drivers 1 – Accommodation Issues  Wrong location  Lack of investment and a backlog of investment  No longer fit for purpose  Don’t meet the needs of a 21st century fire service  Involvement of key stakeholders

Key Drivers 2 – Accommodation Issues  The following drivers highlight why a new partnership model would be appropriate in relation to tackling investment in fire accommodation:  Individual investment levels fall below PFI threshold  Too many to tackle in one go - coordinated planning required  Economies of scale and opportunities for shared use  Procurement economies  Production of standard specification and footprints  Access to PFI and other funding to support the programme

What might the model look like?  The following model represents how key stakeholders can become equity partners in FiReCo.  The individual fire authorities are the end customers, and could enter into lease plus agreements for the build/refurbishment of fire stations as part of this model. Alternatively they may be successful getting alternative funding such as PFI.  FiReCo will act as the procurer for the services, working into FiReBuy. The model could be setup to reflect a regional focus with various regional FireCos being established. ODPMF & RAsPrivate Firebuy FiReCo Lease Agreement PFI Individual fire authorities

PFI Accommodation Summary  Similar models are in operation in other sectors and there appears to be an opportunity to create an integrated and targeted model in the Fire & Rescue Service.  This will enable economies of scale and common footprints for fire stations to be developed. It will also prevent the piecemeal approach to date and should enable a more focussed and partnership based programme to emerge.  This model could operate locally within an authority, within a region or nationally  If PFI not supported by ODPM still scope for model to be taken forward

Helicopters

Helicopter Project (NFARSS) Modern FRS needs  More flexible response  Meet new challenges  Support waiting functions Land based only approach:  Requires capacity  Limits scope of options to address challenges  Doesn't address congestion/ access problems

Helicopter Project (NFARSS) Proposal supported by CFOA is for a national fire air response support service (NFARRS) NFARRS would help FRS meet new challenges;-  Climate change  Special services  Collapsed structures

Key roles for NFARRS  Rapid transport of crews and specialist equipment  Natural disaster response  Command and reconnaissance at major five operators  Non-fire emergencies where there is an immediate threat to life;  Chemical/ biological  Spills/ incidents  Road traffic collisions  Water rescues, etc

Key roles continued  Enhanced support to retained and volunteer crews in rural areas  Search and rescue (in support of UK SAR)  Enhanced command and control safety  Support to urban search and rescue  Deployment of joint MAIATs

MAP OF SIX SITE OPTIONS

Nature of Service Helicopters will need to be able to;  Land during major incidents  Take up to 9 Fire-Fighters + air crew or ½ ton of equipment & 4/5 FFs. Service will need to operate all year National approach will minimise costs (police/ ambulance approach has resulted in piecemeal approach)

NFARRS would result in:  Reduction in need for specialist rescue staff and associated training  Improved attendance times for delivery of specialist teams and equipment  Support to and from other agencies  Potential savings

Next steps  PFI bid has been submitted  This has compared conventional/ leased/ PFI options  PFI options best as links to life of asset (25 years)

Key Issues: If approved;  Who would ‘own’ NFARSS ?  How would project costs be funded? If not approved:  Given potential savings identified should project be taken forward by LGA/ CFOA?

PFI – next steps  The deadline for submitting bids was Friday 7 th October  The PFI Evaluation Team now assess the indicative bids received and make recommendations to Ministers  Anticipated that Ministers will announce the successful bids end November 2005

FRS/ Police PFI Procurement Pack  Its aim:  To assist authorities with establishing PFI projects and the PFI procurement process  To reduce timescales for PFI projects through greater standardisation etc  Joint with Police/ Home Office and Firebuy  In time to assist the Round 5 authorities  Issued through the 4ps

FRS/ Police PFI Procurement Pack  It will cover:  Strategic content  Project development including Outline Business Case  Project delivery including time table  Pre-qualification and shortlisting  Tender documentation and specifications  Contractual issues  Completion and monitoring  Model documentation – e.g. Payment mechanisms

Summary  NPS Published  Firebuy will be in place 1/4/06 – interim company set up  PFI round 5 underway  Property Model Option  Helicopter Project  Procurement Pack for PFI/ PPP being developed

National Procurement Strategy and PFI in the Fire & Rescue Service Terry Brewer Interim Chief Executive - Firebuy _____________ Ken Knight LGA Advisor