1. Roads 2011 Where are we on Procurement
Monday 21 November 2011, CBI Conference Centre

2. Signed off Strategy Framework agreement – 4 Lots / Alliances
Supplier must be able to provide the full range of services either in house or supply chain
Direct call-off by clients within the Lot Area.
Clients only have to take the service they want
NEC3 Contract
We want suppliers to work with us and each other
Value for money!

3. Four Alliance Areas Total estimated value between £747m and £2.64b
NE – LoHAC
£26m pa
NW – LoHAC
£35m pa
Total estimated value between £747m and £2.64b
C – LoHAC
£56m pa
S – LoHAC
£55m pa

4. Alliance Development Team
Joint TfL and LB Contract Development
Team
Technical Specification work stream
What, When, Why & How
Procurement work stream
Compliance
Commercial Work Stream
VFM
Borough & TfL Liaison work stream
Meeting London’s Need

5. Technical Specification
Review of 30 odd existing specifications
First Draft send to Boroughs & TfL
Two workshops held - 23 Authorities attended
2nd Consultation period ended 4th Nov
Formal responses 14 received
2 No Comments
7 very detailed
5 focused on specific areas

6. Standard Detail Drawing
60 Standard Detail Drawing Produced
Five Boroughs volunteered to review them
Comments received back and are being taken on board

7. Procurement
OJEU: 5/10/2011
Industry day 24/10/11 – 22 suppliers attended
PQQ submission: 16/11/2011
PQQ Evaluation process 17/11/2011 – 2/12/2011
PQQ consensus meeting - 9/12/2011
Prelim report to TLHM Board Dec
Final recommendation to TLHM Board Mid Jan

8. Procurement 2 Announce ITT shortlists end Jan Issue ITT early Feb
Tender submission: 12 weeks
Award of contracts: November 2012
Contract commence: April 2013

9. Framework Approach TfL is letting the Frameworks on TLHM behalf
TLHM Board have reserved the right to award more than one Lot to a single contractor.
Common governance and performance management.
NEC Price List provision for Target Cost and Cost Reimbursable
Common schedule of rates – Area wide
Base price - uplifts for road type / ToD / restrictions
Individual Authorities Lump Sum prices
Individual Authorities unique item / requirement prices

10. Common Contract Reviewed existing contracts
Input from htma, existing suppliers & authorities
Eversheds now appointed to support the project
Draft of Framework produced under review within TfL and by external Lawyers.
Draft Call off Contract circulated to three volunteer Boroughs for review
Allow use of client buying power via E Auctions

11. Performance Regime
Working very closely with the LoHAC Culture Change Working Party
Contractual and Non Contractual KPIs
Contractual measure contract compliance
Non Contractual measure client and supplier joint working and contribution towards client goals
Contractual KPIs linked to Framework term length
Eight year Framework Term
Supplier doesn't achieve them - term reduced
Supplier does perform - lost time is awarded back

12. Stakeholder Liaison All Boroughs asked to give:
Any expression of interest
If interest for what services and from when
Under what basis they wish to procure Lump Sum - SoR
Regular meeting with Boroughs most likely to use the new contracts from 2013/14 – Tier 1.
Regular forum established with Tier 1 Boroughs. - Open to others
Potential users provided with list of asset and contract information required for inclusion in ITT.

13. National Comparison
Highways Maintenance Efficiencies Programme Survey - Over 80 authorities (approximately 55%).
The most common form of maintenance contract was the NEC, with over two thirds of authorities using it in some form.
A standard form of contract based on the NEC would be welcomed by Local Highway Authorities.
95% of respondents supported the development of a standard specification.
31% of respondents were already in some form of alliance, and 26% were looking into joining or forming such an arrangement.

14. Benefits Realisation
Standard Contract Documents - Staff time savings associated with maintaining bespoke documentation, average £80K* per authority
up to £3m based on those likely to go to the market nationally in the near future.
overall savings of £12m to be realised if all Local Highway Authorities move to one standard form.
Collaborative Alliances for medium sized authorities a figure £1.1m** pa per authority was identified.
*TLHM Business case 72k ** TLHM Business case 10-15% savings

15. Summary On Track Still a lot to do Not to late to join
Borough input is vital and appreciated
Market response has been very positive
Large scale collaborate works
Highway Alliances Work

16. Questions?