1. Peter Barclay MHA Manager
An Introduction to the Professional Service Framework
Peter Barclay
MHA Manager
This roadshow is to make you all aware that PSP3 is now available for use, and to describe how it can be used. I’ll begin with a bit of background on the MHA, then the procurement process. Then I’ll quickly run through the Framework Contract and how its works. Finally representatives of the 4 suppliers will tell you a little about themselves and what they bring to PSP3.
This is not intended to be a formal meeting, so please ask questions as we go along. It may be we can’t answer them all today, but we will come back with an answer as soon as we can.

2. MHA Ambition Set up in 2007 with the aim of:-
Developing partnerships to increase collaboration and sharing of ideas
Encouraging benchmarking and good practice sharing across the alliance
Deliver highway services efficiently
Successfully operate a learning community
Ensuring our frameworks are second to none
Set up initially with government funding and consisted initially of 9 authorities. It is an Unincorporated Association by Agreement, and its original aim was to help highway authorities improve highway services in the Midlands area and help them deliver efficiency savings. It aims to do this by
developing partnerships with other authorities, alliances, contractors , professional and trade bodies etc.
Developing common indicators for highway term contracts to encourage convergence to best practise
Developing frameworks to deliver major projects
Developing partnering principles and best practise in all our work , and create a learning environment with a
Learning management System.
By being a member of the National Association of Framework Contractors we ensure that our frameworks are all compliant with the requirements of the LGA’s Effective Construction Frameworks, part of Government Construction Strategy.

3. Who are we? Leicestershire County Council (Lead MHA Authority)
Barnsley Metropolitan Borough Council
Buckinghamshire County Council
Derby City Council
Derbyshire County Council
Doncaster Metropolitan Borough Council
Leicester City Council
Lincolnshire County Council
Milton Keynes Council
Northamptonshire County Council
Nottingham City Council
Nottinghamshire County Council/ VIA
Oxfordshire County Council
Peterborough City Council
Rotherham Metropolitan District Council
Rutland County Council
Sandwell Metropolitan District Council
Staffordshire County Council
Stoke City Council
Telford and Wrekin Council
Wolverhampton City Council
West Midlands Combined Authority
There are cuurently 22 members of the MHA.
Range of authorities from Metropolitan DC th Combined Authority, to arms length ie Northants/ staffs to Notts and Via.
Joined MHA for a variety of reasons – to use either frameworks
Still to come – MSIG merger/other new authorities.
Membership restricted to Midlands and immediately adjacent.

4. Governance Executive Board Programme Board 5 work streams
Approves annual business plan
Programme Board
Monitors progress on achieving Business plan targets
5 work streams
The MHA has a budget of around 550,00 a year which is income from its members, either as a fee or a levy on the use of the frameworks. Therefore it has a clear governance structure to ensure it does what its members want.
The top tier is where director of each authority meet to agree the annual business plan. This lays out what the alliance will be doing for the financial year and how much it will cost. This plan can be found on the MHA website.
Programme board overseas the work of the workstreams to ensure they produce what is wanted.
The 5 workstream are where all the work is carried out, either by the 4 MHA staff or by staff from member authoities or by consultants

5. Work Streams 5 workstreams Term maintenance
Assets standards and commodities
Medium Schemes
Skills Community
Professional Services
Term – looking at developing kpis and looking at Confirm
ASC has focused meetings on topics of interest such as the risk based approach to highway maitenance.
Medium schemes – develops and manages the construction framework MSF3 , John Hooper , 4 contractors,pipeline of work 1.2 bilion
Skills Community – learning and development

6. Work Streams 5 workstreams Term maintenance
Assets standards and commodities
Medium Schemes
Skills Academy
Professional Services
Professional services – to develop and manage a professional service framework PSP3

7. Previously 2004 - Single client with call off contract
2007 – 3 Clients with one supplier on call off - 3CAP
PSP1- 10 clients with one supplier
PSP2 – 22 clients with one supplier
PSP3 - ?????
Brief history of how we got to where we are.
Savings around 10-15%
PSP2 outturn looks to be £60million

8. Framework Procurement
Managed by LCC CPU through ProContract portal
OJEU compliant Open tender process
Quality / Price 50/50
8 Quality questions assessed by 16 assessors
Two lots –
Professional Services
Secondments
OTT November 2018
Returned in January
Involved many authorities both in development and assessment.
Changed from one supplier for two reasons : industry expressed a lack of interest in tendering for a sole supplier; some member authorities wanted to have an alternative supplier.

9. Tender Outcome 10 bidders overall Lot 1 Professional Services
1st AECOM
2nd Amey Consulting
Lot 2 Secondments
1st Waterman
2nd Matchtech

10. The Framework Based on NEC4 Framework Contract
Between suppliers and Leicestershire as host
Enabled to allow all MHA members to use.
Started 29th April 2019
Duration 3 years +1
Requires suppliers to act on instruction (C20)
Uses Contract Data parts 1 and 2
Contract Data defines what is in the contract. Along with its constituent documents

11. Framework Contract Data
Part 1 (provided by client)
Framework information
Selection procedure
Quotation procedure
Additional conditions (z clauses)
Order options
Part 2 (provided by supplier)
Quotation information
Pricing
quality
This is contract data at framework level.
Shows the various documents needed to complete the framework contract
This is what the tenders were based on. 3 Z clauses
Not to be changed.

12. Framework Contract Data
Contract Data also introduces options for Time Charge and Work Orders
NEC4 Professional Service Contract
Significant or complex projects (> £250k?)
NEC4 Professional Short Service Contract
Straightforward projects
The Framework contract needs additional terms and conditions that reflect the work that it is to be used for.
We have included two options
NEC4 is the latest version of the New Engineering Contract, issued in June 2017.

13. Framework information
Describes how the framework is to be managed.
Consists of 12 sections and includes all the other procedures:-
Sections 1 to 3 cover the introduction, scope and aims and objectives
Section 4 outlines the contractual arrangements
The key document is the Framework information as it effectively lays out how the framework will be operated by all.

14. Framework Information
Section 5 is about Governance
Framework board- strategic issues
Framework community board- operational
Working groups
Commission or Process manual
Framework Board – representatives of clients and suppliers meet to discuss starategic issues, and monitor risk register.
FCB looks at everyday operational issues.

15. Framework Information
Section 6 - Contract Extension
The criteria for extending the end date will include:-
The value in the OJEU notice has not been exceeded;
A satisfactory and improving performance standard over the first two years;
The Supplier still satisfies financial requirements
PSP3 is still meeting the MHA’s requirements
The contract duration is 3 +1
Important to get information to make sure these indicators are accurate.

16. Framework information
Section 7 Selection Procedure
How to choose a Lot 1 provider
3 methods:-
Direct call off – AECOM
Regional call off – to be determined
Mini competition – client to determine quality/price assessment
NB for both lots its for the client to decide which selection process to use.
One of the most important sections of the FI – how to select a supplier.

17. Framework Information
Regional Direct Call Off
Based on the Most Economically Advantageous Offer for the MHA sub-region (sub-region 1st)
Option in tender to apply regional price weightings
Apply quotation information to model of work likely to be applied to the sub-region
MHA Sub-regions as used for the Medium Schemes Framework 3 Contractors
Still to be confirmed.

18. Framework information
Section 7 Selection Procedure
How to choose a Lot 2 provider
2 methods
Direct call off – Waterman
Mini competition – client to determine quality/price assessment
NB for both lots its for the client to decide which selection process to use.

19. Framework Information
Section 8 Quotation Procedure (Lot 1)
Options for placing orders –
<£250k - NEC4 Professional Services Short Contract (PSSC)
Time Charge or lump sum
>£250k – NEC4 Professional Services Contract (PSC)
Option A - Lump Sum
Option C - Target Cost
Option E - Time Charge
No upper limit on the value of an order
Lot 2 is PSSC time charge only

20. Framework Information
Section 8 Quotation Procedure (Lot 2)
Options for placing orders –
<£250k - NEC4 Professional Services Short Contract (PSSC)
Time Charge
No upper limit on the value of an order

21. Framework Information
One rate per specialism/band
Bands & Specialisms as PSP2 so will carry over
Rates not based on salary as PSP2
Annual Indexation applies as PSP2
Mileage included in rate as PSP2 unless co-located with client

22. Framework Information

23. Framework information
Section 8 Quotation Procedure
Described in detail in process manual
Contract data required at Project level:-
A detailed description of the Service.
Where the staff are to be located
The time and date for return of the quotation;
The address for return of the quotation.
The proposed start date for the Work Order or Time Charge Order, and if required the proposed duration.

24. Framework information
Section 8 Quotation Procedure
Individual requirements of the Client’s in house procurement rules including
any requirement for a parent company guarantee and its wording(C21.4and 5), and
limitation of liability (C21.6).
NB this may impact on timescales and costs

25. Framework information
Section 9 - definition of secondment
A secondment is defined as when a member of the Supplier's staff is located in any of the Clients offices for a period longer than three calendar months and for more than an average of 60% of their normal working week, or are filling a vacant role in the Client’s organisation
Section 10 - dispute resolution
The dispute will initially be dealt with at design office level. If this fails to resolve the dispute, it will be referred to Order management level. Should the dispute still not be resolved it should be passed to the Framework Community Board prior to it being referred to adjudication.

26. Framework information
Section 11 Performance management
Within three months of the contract award the Framework Community Board will develop agreed indicators that will enable the performance of the framework to be measured adequately both across the Suppliers, MHA members and against national indicators.

27. Framework information
Section 12 Other requirements
Freedom of Information
Intellectual property rights
TUPE
People rates
Price adjustment
Regional multiplier
MHA Framework Levy
Highlight last 4 points

28. Scope of Services

29. And finally Any MHA Member can use the PSP3 Framework to order work
The new PSP3 Process Manual will ensure that orders placed will comply with the Procurement Regulations and the ‘contract’ is clearly defined.
The Member Authority placing the order will be the ‘Client’
The whole process will be monitored by the performance management system and be made available by the new Information Sharing Platform
NEC4 Training on NEC4 PSSC and PSC

30. Any questions. More information can be had at www. mhaweb. org
Any questions?? More information can be had at or sign up for our newsletter

31. MHA PSP3 - AECOM Offices

32. MHA PSP3 – AECOM Management Team

33. MHA PSP3 – AECOM Delivery Team