NEW FOOTSCRAY HOSPITAL INDUSTRY BRIEFING · Footscray Hospital –Industry Briefing February 2019...

NEW FOOTSCRAY HOSPITALINDUSTRY BRIEFING

14 February 2019

Welcome and introduction

Jenny Mikakos MP Minister for Health

Robert Fiske Chief Executive Officer, Victorian Health and Human Services Building

Authority

Russell Harrison Chief Executive Officer, Western Health

Tina Skliros Project Director, Victorian Health and Human Services Building Authority

Jason Loos Deputy Secretary, Commercial, Department of Treasury and Finance

Stephen Wall Chief Executive Officer, Maribyrnong City Council

Andrew Bradley Manager, Strategic Projects and Supply Chains, Industry Capability Network

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Agenda

Building a better hospital for Melbourne’s inner west

The investment need

The health service need

Project scope and procurement

Partnerships Victoria – the policy context

The Council perspective

Industry Capability Network

Q&A

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Jenny Mikakos MP

Building a better hospital for Melbourne’s inner west

Victorian Government’s health agenda

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The Victorian Government is committed to improving the health and

wellbeing of Victorians and the Victorian healthcare system as a whole.

Largest ever health capital investment in Victoria of up to $1.5 billion to deliver

the 504 bed New Footscray hospital.

Better accessBetter health Better care

World-class care close to home

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Cut wait times

Almost 15,000 additional patients to be

treated each year.

Almost 20,000 additional emergency

department admissions each year.

Up to 17,000 patients redirected from

inner-city hospitals back to their local

hospital in the west.

The opportunity

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Unprecedented opportunity to create a precinct that delivers significant

health, economic and education benefits to the people of the west.

Located on the site of the Victoria University Footscray Park campus car park.

Transform Melbourne’s inner-west into a vibrant health and education precinct.

Create in excess of 1,000 construction jobs and up to 1,000 jobs in health and

education.

New Footscray Hospital Project ­ Video

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To view the video presented at the Industry Briefing, please click here.

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RobertFiske

New Footscray Hospital -the investment need

VHHSBA is focussed on developing new solutions to old problems

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Boost efficiencies and innovation in the

planning, management and delivery of

major health and housing infrastructure.

Pipeline of projects:

• Frankston Hospital

• Ballarat Hospital

• Community Hospitals

• Latrobe Regional Hospital – Stage 3

• Sunshine Mental Health

And planning for upgrades at The Alfred Hospital, Royal

Melbourne Hospital and a potential new hospital Melton (subject

to further funding)Pictured: Artist impression of proposed redevelopment of The Alfred Hospital

Demand for hospital services in Melbourne’s west is

expected to more than double within the next 20 years

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Population growth Increased utilisation

Melbourne’s west is forecast to grow by more than

550,000 residents by 2036-37, an increase of more

than 60% on the current population.

New treatment options are increasing the utilisation

of hospital services.

Growth in ageing population Local demographics

Older population in western Melbourne to grow by

153% by 2036, compared with 95% for all Victoria.

Low income or welfare dependent families comprise

11.7% of the population in western Melbourne,

compared with 8.7% average across the state.

A system-wide response is required to meet this demand

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A new Footscray Hospital.

A business case to explore a potential

new hospital in Melton.

Further expansions at Sunshine and

Werribee Mercy hospitals.

Pictured: Werribee Mercy Hospital

RussellHarrison

New Footscray Hospital -the health service need

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Footscray Hospital is part of an integrated network that

provides services to Melbourne’s west

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Current Footscray Hospital

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Western Health’s ambitions for the new Footscray Hospital

TinaSkliros

Project scopeand procurement

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All information is provided solely for the purpose of informing

industry of the project status and broad directions

• No representations are to be implied or inferred

• VHHSBA reserves its absolute discretion to further develop the project as it sees fit

• VHHSBA has appointed O’Connor Marsden & Associates as Probity Adviser for

the project

• Formal communication and probity processes are now in operation

• All communications are to be directed to the Project Director via email at

nfhproject@dhhs.vic.gov.au

The new Footscray Hospital will deliver at least 504 beds

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Up to $1.5 billion to deliver:

• at least 504 inpatient beds

• acute facilities

• specialist facilities

• clinical support spaces

• carparking

• teaching and training spaces

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The new hospital will be located at 89 Ballarat Road, Footscray

Public-Private Partnership (PPP)

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Core services model

• Clinical health services remain with the State

• Asset maintenance and lifecycle replacement, help desk, security, waste

management, pest control, cleaning (base), car park management and

grounds maintenance services and utilities management to be passed to the

private sector

Up to $1.5 billion has been committed to deliver the

project

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Funding envelope allows for:

• land acquisition

• PPP project scope

Value creation is anticipated from commercial opportunities

Anticipated to have an upscope and downscope ladder

• Early Works

• existing site demolition

New Footscray Hospital to open in 2025

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Activity Indicative timelines

Tender process

(Public Private

Partnership)

Release Invitation for Expressions of Interest Mid 2019

Release Request for Proposal Late 2019

Contract and Financial Close 2020

Construction and

commissioning

Construction commencement 2020

Operational commencement of the new Footscray Hospital 2025

Targeted market sounding will commence in March 2019

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To update the market on the project requirements and seek input on the

project’s development to facilitate a value for money outcome.

Key issues for discussion:

• market capability, capacity and appetite

• procurement and site due diligence

• financing options

• program

• FM services delivery models

• potential commercial opportunities.

Other issues

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• Shortlisting – 2 or 3 bidders?

• Bid costs

• Potential early access to data room

• Early Works

The State’s objectives in delivering the new Footscray

Hospital are to:

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• Improve access to quality care close to home for the people of western Melbourne.

• Use evidence-based design to promote the physical and mental wellbeing of its

diverse users, including patients, families, staff and the broader community.

• Enable the delivery of integrated care, both within and beyond the hospital.

• Support operational efficiency and provide flexibility to respond to changing

clinical practice, technology and service demand.

• Create an ecologically sustainable precinct that optimises value for money on a

whole of life basis.

• Deliver a vibrant community asset that enhances liveability and fosters

collaboration in education, training and research.

Jason Loos

Partnerships Victoria -the policy context

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Public-Private Partnership (PPP) model

High level of activity and continuing roll-out of PPPs

Upcoming budget to prioritise election commitments

Strong outcomes in the sector - five PPP hospitals successfully operating

Procurement rationale

• ‘Whole of life’ approach offering comparative advantages, including greater certainty over cost and

timely completion, risk management and opportunity for improved value for money

• Contractual flexibility to deliver future upgrades

• Greater innovation opportunities offered to the market

PPP value for money considerations

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Potential scope ladder

• PSC as an affordability benchmark

• identify priority scope to add or remove

State capital contribution

• potential to deliver value while preserving

private sector incentives

Recent strong outcomes for long-term

finance

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Standard templates and guidance

Market-tested templates and guidance to improve certainty, efficiency and reduce

bid costs:

• standard project deed and guidance notes

• standard EOI and RFP templates

• contract management guide.

New Footscray Hospital will adopt the PV Standard Project Deed:

• a focus on project specific issues

• increased transparency and certainty

• improved outcomes

• reduced tender costs for the State and private sector.

PPP process efficiencies

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PPP process efficiencies

• Government is seeking an efficient tender

process

• Encourage quality EOI responses from the

market to enable shortlisting of two or three

parties

• No intention to reimburse bid costs

Applying Government policy

• Social procurement

• Local Jobs First

• Value creation and capture

StephenWall

The Council’sperspective

Welcome To Footscray

1.Engagement program with local

community

2.Shared Vision / Precinct Plan with early

transport improvement package

3.Working with Local Businesses

A Better Neighbourhood

Working Together

Site

Insert Laneway Video

Footscray Precinct

Andrew Bradley

Understanding ICNVictoria’s role

Overview

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• About us

• Local Jobs First policy application and

assistance

• Local Jobs First policy-based services

• Commercial services

About us

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Local Jobs First policy application

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• Advise Government on minimum local content %

• Benchmarking of local industry capability targets

• Assess achievability of bidder’s LJF LIDP

commitments

• Monitor commitments

• Report to Government

Government supported services – bid phase

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• Industry adviser allocated to each bid team

• Advise in developing commitments for LJF

LIDP plan

• Local capability research

• Localisation assistance

• ICN Gateway Project page

• ICN commercial services

• MPSG commitments now part of LJF

Government supported services – bid phase

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• Local industry engagement strategies

• Customer care

• Training

Government Supported Services – post award

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• Remedial localisation assistance

• Compliance assistance

• Monitoring and reporting

• Use of ICN analytics

Commercial services

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• Industry adviser secondment

• Supply chain research

Contact details

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Andrew Bradley

abradley@icnvic.org.au

Further information and contact details

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Enquiries

• Project Director:

Tina Skliros

E nfhproject@dhhs.vic.gov.au

• Probity:

Andrea Hassett

O’Connor Marsden & Associates

E ahassett@ocm.net.au

Further information

• VHHSBA

vhhsba.vic.gov.au

• Western Health

westernhealth.org.au

• Partnerships Victoria

partnerships.vic.gov.au

• Local Jobs First

localjobsfirst.vic.gov.au

• Maribyrnong City Council

maribyrnong.vic.gov.au