Soft FM Category Procurement Plan Presentation for Schools

‘Soft’ FM Category Procurement Plan Presentation for Schools October 2015 Initiation June 2015 Commitment 2016/17 Strategy Dec 2015 Baseline July 2015 © 2013 Hampshire County Council Private and Confidential.

‘Soft’ FM Category Plan Contents Objectives Scope Spend Governance Timescales Engaging schools 2 © 2013 Hampshire County Council Private and Confidential.

High Level Objectives More strategic, commercial, LEAN procurement solutions Current solutions are fragmented, tactical frameworks with many suppliers entailing high levels of administrative effort Fewer, longer term partnership relationships with suppliers (Corporate goal) LEAN call-off mechanisms for schools and partners Better take up by Schools and Partners Current take up is low Move to County Supplies managing the interface with schools in future for all Categories, extending current role for common use goods and services Enable Contract Governance No corporate ownership of the Category contracts at present There is virtually no Supplier Relationship Management or contract management at present Corporate goal to work with fewer suppliers, more strategically Proactively drive value during the contract lifecycle, shift resource from admin 3 © 2013 Hampshire County Council Private and Confidential.

Category Objectives (1) (Soft FM) Source: Soft FM Category Steering Group Workshop 16. 6. 15 Overarching • Flexible – can grow and shrink with changing business needs • Being able to adjust to building occupancy – charging mechanisms linked to business drivers • Be able to opt in and out without penalty • Being able to support joining partners e. g. Fire • Being able to support traded/shared services – including outside Hampshire’s boundaries • Length of opportunity to partner – contract length Value/ Performance • Best value – not necessarily cheapest – fit for purpose, evidenced of service delivery – audit trail – current audit trail is minimal • Ongoing benchmarking e. g. price per unit • KPIs • Cost transparency • Good quality, consistent Management Information, Billing arrangements, spend data Contract Governance • Identified, appropriate and properly resourced contract management • Levels of governance – Strategic Board and operational management • Contract management on behalf of schools – escalation route • Customer relationship management – involvement in managing the contract • Need succession planning in contract management and client contacts 4 © 2013 Hampshire County Council Private and Confidential.

Category Objectives (2) (Soft FM) Source: Soft FM Category Steering Group Workshop 16. 6. 15 Partners/traded services • Demonstrate to schools why they would buy from the contract • Continue assurance in HCC procurement arrangements to schools/partners • Needs to be sold to existing and new customers • Recognise the level of support needed to many clients, it is secondary to what the clients do • Need succession planning in contract management and client contacts • Consistent financial models across clients • High client satisfaction, High take-up by schools and partners Process • Process simple and transparent for call-off • Minimum administration under the contract • Route to sort out problems quickly and effectively • If we do have call-off, manageable call-off – appropriate no. of bidders • LEAN call-off processes, Appropriate use of Procurement Resource Sustainability • Commitment to equality and diversity • Sustainability outcomes – Environmental, Social, Economic • Support the local economy through the supply chain 5 © 2013 Hampshire County Council Private and Confidential.

Soft FM (premises related) Category Scope Hierarchy of Key Areas Soft FM Cleaning Laundry Catering Windows Waste Collection Pest Control Postage, storage, couriers Washroom, hygiene Interface with Corporate Services Category Security PAT Testing Access Systems Interface with Hard FM Category © 2013 Hampshire County Council Private and Confidential.

Minor areas of spend in scope Low value spend lines which are in scope – we will need to consider whether corporate procurement solutions are needed Category Calibration Services Description Calibration of electrical, lab & science, Medical and non-electrical equipment. Crossmaterial group. Cleaning of Cesspits & Grease Traps Cesspit emptying and sewerage removal, cleaning of cesspit equipment, drain cleaning / unblocking. Lubricants, Greases, Oils & Anti-Corrosives Various oils and lubricants NOT related to vehicles, including shredder and chainsaw oils. HCC Corporate Schools Total Spend: £ 11, 542. 32 Total Spend: £ 529. 00 No Suppliers = 17 No Suppliers = 4 Total Spend: £ 3, 544. 93 Total Spend: £ 23, 323. 16 No Suppliers = 3 No Suppliers = 11 Total Spend: £ 4, 495. 80 Total Spend: £ 533. 82 No Suppliers = 5 No suppliers = 7 H 3 Partners Police: £ 597. 00, 1 supplier HFRS: No spend Total Spend: £ 12, 668. 32 No Suppliers = 22 Total Spend: £ 26, 868. 09 No Suppliers = 12 Police: No Spend HFRS: £ 253. 78, 1 supplier Total spend: £ 5, 283. 40 No Suppliers = 13 © 2013 Hampshire County Council Private and Confidential.

Minor areas of spend in scope Low value spend lines which are in scope – we will need to consider whether corporate procurement solutions are needed Category Description M & R – Electrical Equipment Maintenance and repair of electrical equipment, excluding PAT Testing. M & R – Lab & Science Equipment Maintenance and repair of laboratory and scientific equipment. M & R – Medical Equipment Maintenance and repair of medical equipment. Includes access and mobility equipment (e. g. stair lifts) M & R – Non. Electrical Equipment Maintenance and repair of non-electrical equipment. HCC Corporate Schools Total Spend: £ 73, 648. 11 Total Spend: £ 73, 922. 67 No Suppliers = 37 No Suppliers = 106 Total Spend: £ 68, 627. 14 Total Spend: £ 7, 528. 14 No Suppliers = 27 No Suppliers = 10 Total Spend: £ 5, 521. 88 Total Spend: £ 19, 059. 34 No Suppliers = 6 No Suppliers = 12 Total Spend: £ 48, 397. 37 Total Spend: £ 87, 129. 06 No Suppliers = 33 No Suppliers = 108 H 3 Partners Police: £ 4, 160. 55, 4 sup’rs HFRS: £ 952. 70, 2 supl’rs Police: £ 1, 075. 00, 2 sup’rs HFRS: No Spend Total Spend: £ 152, 684. 03 No Suppliers = 142 Total Spend: £ 77, 230. 28 No Suppliers = 37 Total Spend: £ 24, 581. 22 No Suppliers = 18 Police: £ 3, 675. 04, 1 sup’r HFRS: £ 46. 92, all P-Card Total Spend: £ 139, 248. 39 No Suppliers = 137 © 2013 Hampshire County Council Private and Confidential.

Hard and Soft FM Annual Spend via Corporate Contracts Contracting Arrangement Annual Value Notes (£k) Hard FM Term Maintenance Contract (Kier, SSE, Emcor) 12987 Some spend may migrate to minor works Electrical Testing & Inspection (SSE) 314 First £ 10 k of rebate to Property Services. 5, 313 Remainder, circa £ 25 k, to Procurement. Grounds Maintenance (Multi-Supplier Framework) Specialist Arboriculture (Multi-Supplier Framework) Premises Revenue Costs for Schools (Ad-Hoc) Hard FM Total Soft FM 336 No rebate. Actual value is £ 3, 464, 411. 00, but some an 1, 500 element is better suited to minor works framework 20, 450 Cleaning (Hayward, N-Viro, Biorite, YBC, Braybourne) 4, 694 Top 5 providers shown Catering (Innovate, IPA, Eden, Amuse Bouch) 1, 099 Top 4 providers shown Security (Keyline, Walker, Kestrel, Youth Justice, G 4 S) 448 Top 5 providers shown Pest (Kestrel, Austen, CMA, Cannon, Landmark) 108 Top 5 providers shown PAT (Hooper, Pattico, P&R, Safety Masters, PAT Test South) Top 5 providers shown. Significant amount of 139 PAT Testing is undertaken in-house Post (Royal Mail, Neopost, Cross Country, Purchase Power, Pitney Bowes) 1, 457 Top 5 providers shown Waste (SITA, Grundon, Cannon Hygiene) 3, 257 Top 3 providers shown Soft FM Total 11, 202 © 2013 Hampshire County Council Private and Confidential.

Soft FM Category Procurement Steering Group Terms of Reference Chair Julia Linclau, Procurement Business Partner, Infrastructure Membership Kathie Lock, Elise Battison, Geoff Sim HCC FM Representing HCC corporate estate H 3 partners Karen Cousins - Police David Mallard - Fire Schools Representatives Ian Pickles, Kings; Nicola Budgen, Horndean Representing schools needs Steve York, Colin Russell Procurement Team Category specialism Type & frequency Formal: Meetings to agree decision recommendations to take forward for Approval by the relevant Approval Body e. g. EMPR of meetings: Informal: Workshops to develop Procurement Solutions Frequency of meetings and workshops driven by business decision timeframes e. g. expiring contracts, Corporate pressure for efficiencies and desire for best practice Category Plan to be in place to give direction to procurement activity Main purpose of team To delivery the Soft FM Procurement Category Plan by the end of July 2015, demonstrating establishing user objectives for Corporate FM, schools and other key users, robust best practice research, analysis and options appraisal in arriving at solutions. Terms of reference Procurement outcomes are driven by corporate/service led objectives including Tt. C 2017 efficiencies There is clear service leadership for spend areas and initiatives along with a procurement lead to support initiatives There is definition around the respective roles of service managers and the supporting role of procurement Key stakeholders are engaged as necessary including H 3 partners and schools Issues are escalated as necessary to the relevant bodies outside the group The work of the group is joined up with other related forums Reporting 10 Key milestones reported to External Spend Group: Baseline, Strategy and Commitment Decisions for Approval taken to relevant decision making body e. g. EMPR © 2013 Hampshire County Council Private and Confidential.

Timescales • Initial Workshops with Steering Group inc. school reps June 2015 • Survey with Schools July-Oct 2015 • Further workshops with Steering Group Oct, Nov 2015 • Children’s Services/Schools engagement Oct, Nov 2015 • Proposals to Corporate Board MMG Dec 2015 • Member Approval and commence Sourcing early 2016 • Next generation procurement solutions implemented mid-2017 11 © 2013 Hampshire County Council Private and Confidential.

Engaging Schools representation at Steering Group Workshops Survey with Schools Attending existing meetings and forums Schools comms to follow Stakeholder Group with representatives from schools and other Children’s Services establishments 12 © 2013 Hampshire County Council Private and Confidential.