1. Highways Maintenance Contract Commissioning Project
Market Engagement Events
March 2017

2. 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

3. 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

4. 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

5. 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

6. 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

7. 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

8. 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

9. 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

10. 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

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

12. HTMC Job Breakdown
Highways Maintenance Contract Commissioning Project
Market Engagement Event
21/03/2017

13. 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

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

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

16. 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

17. 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