Introduction to empaFrameworks

June 2010

Alan CooleDevelopment DirectorPaul WindleFramework Development ManagerDave LoweVbd Consultants

Scape System Build Ltd is:Local Authority Controlled CompanyTrading Company for CLASPEU Procurement DirectiveContracting Authority & Central Purchasing Body

Shareholders:Derby CityDerbyshireGatesheadNottingham CityNottinghamshireWarwickshire

Consultancy– New Build – Scape Technology– Refurbishment advice

Strategic Procurement – New build projects – Maintenance programmes– East Midlands Property Alliance managing agent– Design Team Framework

Scape and empa

REIP Scape

empa

LA

LAmanaging agent

empa

Executive

Sub-Region 11. Bolsover DC2. Derby City3. Derbyshire CC4. Derbyshire Dales DC5. Erewash BC6. High Peak BC7. NE Derbyshire DC8. Sth Derbyshire

Sub-Region 21. Ashfield DC2. Broxtowe BC3. Newark & Sherwood4. Nottingham City5. Nottinghamshire CC6. Notts Police

Sub-Region 31. Lincolnshire CC2. Nth Kesteven DC3. Lincoln City

Sub-Region 41. Lincolnshire CC2. South Kesteven DC3. South Holland DC4. Rutland CC

• 38 of 46 authorities participating

• 10 authorities have projects in progress

• other public bodies are looking to join

Current Members and ParticipantsSub-Region 51. Blaby DC2. Charnwood BC3. Daventry BC4. Harborough DC5. Hinckley & Bosworth BC6. Leicester City7. Leicestershire CC8. Melton BC9. NW Leicestershire DC10. Oadby & Wigston BC

Sub-Region 61. Corby BC2. Daventry DC3. E Northamptonshire DC4. Kettering BC5. Northampton BC6. Northamptonshire CC7. S Northamptonshire DC8. Wellingborough BC

Executive BoardChair/Vice Chair

Working Group Leaders

Alliance Manager

Working GroupTheme

Working GroupTheme

ScapeDevelopment/Management/Facilitation

New Procurement

Convergence of existing procurement

Other Themes

TrainingRegional Developments

How empa Fits Together.

empa’s activities delivered by ScapeLarge projects framework - £7.5 - £30m - Live

Intermediate framework - £2 - £7.5m – Live

Minor Works framework - £10K - £500K - £2m – Live

Repairs & Maintenance initiative – Autumn 2010

Strategic Asset Management – Commenced

Design & Technical services – Jan 2011

FM – Trial in operation

Training academy

Regional supply chain development

LA

LA

LA

Scape

New Framework

New Framework

National Collaborations

AA

AA

AA

How do the Delivery Contracts Work?

Scape Analysing, Refining, Procuring, Delivering Services to Local Authorities through collaborative developments.

Issues to resolveCosts• Need for savings• Costs increasing• High aspirations

£

time

Need for savings

Increasing costs of construction

Solution enhanced by frameworks - Advantages– Earliest contract involvement– Continuous improvement on all issues– Wider agenda introduced

Evidence…- Early empa experience, indicating +6%

savings- Low/zero procurement costs

Solution enhanced by empa – Scale - Flow of projects– Providing an infrastructure for

management– Common approach to the market– Reduced costs of procurement– Reaching the supply chain

Solution enhanced by empa• Training – Skills academy

– Developing the client side– Improving contractors– Skills agenda

• Economic and social sustainability– Local delivery– Supply chain development

Framework Contractor Selection

OJEU Compliant 2-stage TenderIn accordance with the Public

Contract Regulations 2006Wide based selection panelApproved process by empa and

Scape

Contract Forms:Scape Framework One - NEC Option CIntermediate Framework - NEC Option CMinor works upper band - NEC Option CMinor works lower band - NEC Short

version

Intermediate operates region wide

Minor works in sub regions

Intermediate FrameworkWatesKierWillmott Dixon

Available Now

Minor Works FrameworkBAND Sub-Regional

ManagerLower Value Band£10k - £500k

Upper Value Band£500k - £2m

North WestSub-Region 1

Scape G F TomlinsonHerbert BaggaleyAsheInterserveMansell

G F TomlinsonMorgan AshurstAshe

North CentralSub-Region 2

Paul Monaghan and Paul Bottrill

G F TomlinsonRobert WoodheadHerbert BaggaleyAsheInterserveMansell

G F TomlinsonMorgan AshurstAshe

North EastSub-Region 3

David Turner Robert WoodheadLangwithMansellLindum

G F TomlinsonMorgan AshurstMansell

EastSub-Region 4

David Turner Robert WoodheadLangwithMansellLindum

G F TomlinsonAshe Mansell

CentralSub-Region 5

Nitin Patel and Jason Kennedy

G F TomlinsonHerbert BaggaleyAsheInterserveMansell

G F TomlinsonMorgan AshurstAshe

South CentralSub-Region 6

Garry Pyne Ashe Interserve MansellJ TomlinsonJeakins & Weir

Morgan AshurstAsheMansell

Scape/empa Frameworks• Accessible by any public sector

organisation• Project values as the bands• Satisfies requirements of EU

procurement Directives• Managed arrangements - No need to

tender principal contractor – protocols for selection

Principle Features of the Framework

• Early engagement of Customer and contractor

• Simple process to follow• Risk management• Cost control and ordering procedures• Open book• Performance monitoring procedures

Contract Forms:Scape Framework One - NEC Option CIntermediate Framework - NEC Option CMinor works upper band - NEC Option CMinor works lower band - NEC Short

version

Contractor’s commercial interest• Being allocated the next project• Protect their reputation – special measures• Avoid a loss – make a modest profit• Minimise the design liability that is

retained in the company

Preliminary considerations

Feasibility stage- is the project doable

Pre construction stage- reaching a point of commitmentConstruction phase

Project Process

Process map schedule 5

Gateway process

Contractors pre construction activities schedule 10

Specification of design services schedule 9

Construction

Preconstruction

Feasibility

Strategies on Supply Chain Tendering

• Customer to make their policies clear.• Contractor required to deliver best value• Contractor’s methods of operation with

regard the supply chain part of their submission

• Exercise judgement around…. size, complexity, availability in market, alternative procurement methods.

• Allowances for the unforeseen or ill defined

Risk ManagementThere is risk for the client therefore:

– Identify it– Evaluate it– Accept it– Report it– Manage it

Cultural Issues to Address!• Seeking to collaborate

• Organisations with different cultures

• Changed relationships

Challenge for Leaders

empa REPAIRS & MAINTENANCE THE DIALOGUE PROCESS

30th June 2010

David LoweValue By Design Limited

THE PROCESSShort-listing from PQQ

Lot 1 Lot 2 Lot 3 Lot 4 Lot 5 Lot 6

Apollo Property Services Group X X X X X

Derby Homes X

Derbyshire County Council X X

Enterprise Managed Services X X X X X X

FirstShire X X X X X X

Herbert Baggaley Construction X X X X X X

J Tomlinson X X X X X X

Jeakins Weir X X X X X X

Kier Support Services X X X X X X

Lindum Group X X

Oliveti Consortia X

Robert Woodhead X

Rok Building X X X X X X

Seddon Property Services X X X X X X

Willmott Dixon Partnerships X X X X X X

THE PROCESS

PQQ

ISOS ISDS

ITTDIALOGUE

AWARD

Bidders

The ‘funnelling’ process

THE PROCESSReasons for Dialogue

The need for work/partners is knownThe final specification and solution is unknownReduce expenditure of many Bidders through funnel processAllow high levels of client/stakeholder engagementDevelop appropriate solution (s) with Bidders through dialogue.

THE PROCESSR&M FRAMEWORK CONTENTSSome clients will be offering up work to start on commencement of the Framework. These will be bid through the dialogue and Final Tender processes.

Other work will may be awarded through mini competition once the Framework is operational. The dialogue must consider the potential for these elements, developing appropriate solutions to be called off in the future. (Subject to dialogue)

THE PROCESSITPD – Invitation to Participate in Dialogue

Guidance & information applicable through the dialogue phase. Details evaluation criteria of dialogue phaseProvides outline details to Framework Agreement

Key topics of evaluation developed through the dialogue phase.

THE PROCESSOutline Specification Details basic requirements of solutions. Indicators of existing workloads and anticipation of future work.

All solutions must comply with this, variations and solutions themselves are to be reviewed and discussed in dialogue meetings.

Changes to Output Specification will be universal between Bidders.

Existing detailed information available within Dataroom. Details and booking procedures included here.

THE PROCESSRule of Engagement

Processes and etiquette for conducting dialogue meetings with clients &stakeholders

Bidders with 1 or 2 Zones will get 1 ½ hours at initial dialogue meeting. Those with 3+ will get 3hours.

Questions to be issued to SCAPE prior to meetings wherever possible.

THE PROCESSISOS – Invitation to Submit Outline SolutionsFirst round of dialogue quality evaluation and visits to establish quality standards and systems. Evaluation broken down into:

A. Meeting Authorities’ requirements B. Quality of proposed personnel and interface proposals

with AuthorityC. Commercial and LegalD. n/aE. Reference projects and site visits

Includes written submission and subsequent interview Bidders must pass minimum standards

THE PROCESSISDS – Invitation to Submit Detailed SolutionsSecond round of dialogue development of methodologies and processes to suit clients. Evaluation broken down into:

A. Meeting Authorities’ requirements B. Quality of proposed personnel and interface proposals

with AuthorityC. Commercial and LegalD. FinancialsE. n/a

Includes written submission and subsequent interview Bidders must pass minimum standards

THE PROCESSDialogue Presentations 1.Introductions and reiteration of the procedures for elimination of Qualified Bidders by the Authority2.Qualified Bidders brief verbal introduction to their Team and contents of their presentation3.Qualified Bidders presentation on

1. Round 1 – Outline Solutions 2. Round 2 – Detailed Solutions

4.General questions 5.Qualified Bidders questions

Evaluation team will review marks based on these interviews

THE PROCESSMarking weighting in Dialogue

Categories ISOS ISDS

A 25% 25%

B 20% 20%

C 15% 15%

D n/a 40%

E 40% n/a

Total 100% 100%

THE PROCESSDIALOGUEUltimate aim of the process is to identify suitable solution (s) and demonstrate skills, capacity and basic affordability.

Relies on meeting clients & stakeholders to identify & create solutions. Better solutions more likely to attract more clients.

Both ISOS & ISDS end with written submission and interview/presentation – opportunity to demonstrate solution and present team.

Only shortlisted Bidders invited to submit tenders

THE PROCESSDIALOGUEUltimate aim of the process is to identify suitable solution (s) and demonstrate skills, capacity and basic affordability.

Relies on meeting clients & stakeholders to identify & create solutions. Better solutions more likely to attract more clients.

Bidders responses through the dialogue may instigate amendments to documents, these will be updated & re-issued to all Bidders. Only commercially sensitive information will be withheld.

Only shortlisted Bidders invited to submit tenders

THE PROCESSFINAL TENDER Shortlisted Bidders invited to submit final costs and solutions to Scape based on dialogue process.

May maximum of two solutions from each Bidder.

Final evaluation based on MEAT criteria, i.e. quality cost split.

THE PROCESSPQQ

ISOS ISDS

ITTDIALOGUE

Identify appropriate

track record/ skills

Set minimum quality

standard and outline

solutions for framework

Identify detailed

solutions, method

statements & cost models

Identify EMAT solution based on detailed

solution (s) & cost models

4 YEAR FRAMEW

ORK

THE PROCESSDIALOGUEProcess allows Bidders to input into commercial/legal/ specification aspects of the work.

Within the limits specified by the documents Bidders may offer up and discuss solutions that will provide greatest efficiency and service to Clients.

Date

Issue ITPD 28th June 2010

Dialogue meetings round 1 w/c 12th & 19th July 2010

Receive Outline Solution responses 29th July 2010

Site & office visits Upto 13th August 2010

Bidders presentation 6th August 2010

Short listing Bidders & Issue Detailed Solutions 17th August 2010

Dialogue meetings Round 2 Upto 31st August 2010

Receive Detailed Solutions responses 6th September 2010

Bidders presentations w/c 15th September 2010

Shortlisting Bidders (if applicable) & issue final tender 1st October 2010

Receive ISFT responses 26th October 2010

Notify tenderers of contract award decision 18th November 2010

"Standstill" period November 2010

Award Contract December 2010

THE PROGRAMME

End