copyright © 2018 by baachu
TRANSCRIPT
Copyright © 2018 by Baachu
Copyright © 2018 by Baachu
Next Gen CCS FM Framework – the one FM opportunity you cannot miss!
As the market prepares itself for the Crown Commercial
Services Next-Gen Facilities Management Services
framework, Baskar Sundaram, Founding Director of
Baachu, helps providers ascertain if the framework is
the way forward for them.
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Copyright © 2018 by Baachu
If the answer to most of these questions is , then read on to
understand what the new framework entails and how to ensure that
you are well placed to be a part of the public sector FM supply
chain of the future.
Most of you may already have registered for the upcoming
‘Crown Commercial Services’ (CCS) framework for FM
procurement. Even if you haven’t, we will help you
understand the framework - what it holds for you, and the
industry at large.
If you haven’t already registered for updates and event
invitations relating to the CCS framework,
e-mail: [email protected]
https://ccs-agreements.cabinetoffice.gov.uk/node/6935
Lot 1a procurement is now complete and winners are
announced (in Appendix)
Before we delve deeper into the framework, it is vital that you ask yourself a few
questions to ascertain why you may want to explore this opportunity:
?Are you already on the existing CCS FM framework?
Are you a private FM provider looking to expand into the public sector?
Is the UK public sector an important market for you?
Are your existing public-sector clients looking to take the CCS route for
contract renewals in the future?
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CCS - Background
In recent years, the UK Central Government has focused its
efforts on reshaping public procurement through creation of
Crown Commercial Services (CCS), centralised procurement
vehicle, among other policy changes. The sector is thus
witnessing a shift in procurement policies, guidelines
and practices.
As the existing CCS framework agreement ‘RM1056’ is due to
expire in 2019, CCS initiated groundwork early 2017 with their
supply engagement events to shape up its successor.
With the new framework, CCS is aiming to address key
concerns with the current framework, including - suppliers
not viewing the government as a customer of choice, buyers
concerned with inadequate competition and restrictions on
buying options, etc.
The upcoming CCS framework is expected to cover
c.60% of public sector contracts in the years to come. It
will be used by public sector bodies such as central
government departments, local authorities, schools, NHS, etc.
So, if your organisation’s focus is the public sector market, the
time is right for you to understand and prepare for this
opportunity.
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The Next-Gen CCS FM framework
The new FM framework (RM3830) will build on the performance and
successes delivered by RM1056, while addressing the diverse needs of
Central Government and Wider Public Sector.
UK government is introducing changes based on market feedback to
ensure the new procurement route is easy to use, encourages
collaboration, doesn’t restrict buying options for customers and creates
opportunity for greater localised procurement.
It is expected that the new FM framework (RM3830) will be in place
during 2018 and delivered in the following phases:
● Phase 1 - OJEU 1 (National/Localised Bundled FM) OJEU - Jan 18,
Award - July 18, Live - from August 18
Phase one will have a total of 160-180 suppliers across: lower tier
(100), middle tier (50) and upper tier (25)
Lot 1: FM Marketplace
○ Lot 1a: £0 - £7M; 75 - 100 suppliers
○ Lot 1b: £7 - £50M; 50 suppliers
○ Lot 1c: £50M+; 25 suppliers
Lot 2: Defence Specific (Phase 2 might include Defence)
○ 5 suppliers
○ 5 reserve
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● Phase Two - Defence FM, Housing Maintenance, Security : OJEU 2 - July 18,
Award - December 18, Live 2019
○ Integrated services (5 suppliers): £25m - £75m
○ Security services (10 suppliers): £0bn - £1bn
○ Linen and Laundry (10 suppliers): £40m - £50m
○ Catering services (20 suppliers): up to £250m
● Contract Duration: Up to 7 years, maximum 3 year extensions
● Weightages: 50%/50% quality/cost; +/- 30% at Customer discretion
● Locations: 63 regions - suppliers can select one or all regions; during tender
process, suppliers will be selected and placed into lots and must demonstrate
delivery capabilities in the given region
● Mandatory financial suitability assessment for all participants prior to
progression on to the Framework
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CCS Next Gen FM – What’s new?
Among a host of other improvisations, the framework
will feature a
Fit-for-purpose commercial model suitable
for large and small packages
Improved handling of TUPE data transfer
Revised service lot categorization direct
award for simple
Low value requirements (mandatory
services only) on tenders up to £1 Mn.
The framework will operate electronically – through a bespoke portal,
buyers will be presented with a number of mandatory stage-gates
designed to filter out non-compliant suppliers.
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Framework design and structure – key highlights
Scope of Services Pricing Methodology
● Comprehensive FM service offering for:
o Hard and Soft FM Requirements
o Security Requirements
o CAFM / Integrator Requirements
o Linen & Laundry Requirements
o Defence specific FM requirements where needed
● Mandatory (Core) and Non-Mandatory (non-core) services
● Anticipated pricing models are fixed price, target cost and Reimbursable (schedule of rates)
● Set Rates on a variable Unit of Measure basis will form basis for all pricing models, e.g. GIA, NIA, weight, time, per item etc.
● Rates will be rolled up, all-inclusive prices e.g. labour, materials, consumables etc.
● 1% CCS levy on all mini competitions which will need to be built in at pricing stage
KPIs & Performance TUPE
● Fewer, more meaningful KPIs related to service delivery
● 10 core KPI’s with additional level 2 KPIs
● Variable at risk element at customer discretion
● Three approaches, based on differing levels of liability transfer:
o TUPE Fixed Percentage tendered at framework (for direct award), based on a full risk transfer of all liability (up to a threshold) applied to the contract value at award
o TUPE risk premium based on actual TUPE data
o TUPE fixed premium based on an annual monetary value applied to the contract
The framework will also support government’s policy agenda for SMEs,
apprentices and growth, by expanding the evaluation criteria to include
social value and innovation considerations – for up to 5% of the overall
quality scores.
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CCS Framework – Call for
action to providers
As the new framework’s OJEU notice date closes in, it is crucial for FM
providers to decide their stance on the framework and chalk out necessary
next steps.
If you are an established provider with significant public sector presence,
keep in mind that increased government emphasis on central procurement will
drive buyers to make greater use of the framework in the coming years.
Further, the focus on SME and local provider inclusion will necessitate you to
look for the right partner organisations for bidding – incorporating social
value and innovation in your bidding proposition.
As the government targets an estimated £2 Bn of annual spend through the
new framework, established public FM providers risk losing out their market
share to competitors if they are not on the framework.
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Baachu Growth View
To enable FM providers to gain a bigger pie
of the FM market, we conducted market
sizing exercise and also researched the
opportunities in the industry.
Baachu team estimates sizeable upcoming
opportunities in the UK public sector FM
market over the next three years, with
upwards of 800 contracts worth over £9 Bn
in TCV will be outsourced by 2020.
Our market sizing exercise estimates over
80% of the FM market is outsourced.
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Baachu Growth View
How many these will be coming through CCS
framework?
We don’t know but we have built a comprehensive database of
upcoming Public and Private sector FM opportunities over the
next five years, across 13 public and 11 private sectors.
You can access to the 6500+ public sector opportunities at
www.baachurain.com
From our RAIN public-sector list, we know there are
● Around 2500 opportunities with estimated contract value between £0 - £7m (Lot 1a)
● Over 260 opportunities with estimated contract value between £7m - £50m (Lot 1b)
● Around 100 opportunities with estimated contract value above £50m (Lot 1c)
● Around 3600 opportunities with no contract values available
On the other hand, if a commoditised, low margin and competitive
public sector FM market is not your focus, either because you’ve
had a bad experience with the existing CCS framework, you can
explore over 2000 private sector outsourced FM projects at
www.baachurain.com.
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Concerns raised and discussed
regarding Lot 1 procurement
General :
The framework provides little scope for differentiation in the market and reduces FM, a complex service provision, to commodity pricing.
SME and Social Value:
Very few specialist SMEs will be able to demonstrate more than one mandatory Service and this will be a barrier for their participation to lot 1.
Pricing:
There are too many unknown variables to provide an accurate value for price per m2.
Building types and building GIA
Sample buildings provided later in the procurement lacked granular details
Legal Terms and Conditions
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Lot 1a Lot 1b Lot 1c
● BAM FM Ltd.
● BELLROCK FACILITIES MANAGEMENT
● CBRE
● Compass Contract Services (UK) Ltd
● Crown Flooring Limited
● Emtec Facilities Services
● Engie FM
● FES
● GRAHAM ASSET MANAGEMENT
● Imtech Inviron
● Integral UK Limited
● ISS Mediclean Limited
● Keysource Ltd
● MC Construction Co. Ltd. (MC Facilities Services)
● Mitie Technical Facilities Management
● Mountjoy
● NG Bailey Facilities Services
● Pareto Facilities Management Ltd
● POWERTEST LIMITED
● Robertson Facilities Management Limited
● Rolfe Contracting Limited
● SCL MANAGED SERVICES LIMITED
● Servest Arthur McKay
● SES (Engineering Services Ltd) -Wates Smartspace FM
● Smart Solutions (Recruitment ) Ltd
● Space Solutions (Scotland) Limited
● VINCI Construction UK Ltd
● Amey Community Ltd
● BAM FM Ltd
● BELLROCK FACILITIES MANAGEMENT
● Bouygues Energies & Services FM UK LTD
● CBRE
● Compass Contract Services (UK) Ltd
● Ecolog International
● EMCOR UK
● Emtec Facilities Services
● Engie FM
● Engie Services
● G4S Facilities Management Ltd
● GRAHAM ASSET MANAGEMENT
● Integral UK Limited
● Interserve (Facilities Management) Ltd
● ISS Facilities Services Ltd
● ISS Mediclean Limited
● KIER WORKPLACE SERVICES
● Mace Macro
● MEARS
● Mitie Facilities Services Ltd
● Mountjoy
● NG Bailey Facilities Services
● NOONAN
● OCS Group UK Ltd
● Pareto Facilities Management Ltd
● Robertson Facilities Management Limited
● Salisbury Workplace Services Ltd
● Serco Ltd
● Servest Arthur McKay
● Servest Group Ltd
● SES (Engineering Services Ltd) -Wates Smartspace FM
● Skanska Construction UK Limited
● Sodexo
● VINCI Construction UK Ltd
● Amey Community Ltd
● Bouygues Energies & Services FM UK LTD
● Ecolog International
● EMCOR UK
● Engie Services
● G4S Facilities Management Ltd
● Interserve (Facilities Management) Ltd
● ISS Facilities Services Ltd
● JOHN GRAHAM HOLDINGS
● KIER WORKPLACE SERVICES
● Mace Macro
● MEARS
● Mitie Facilities Services Ltd
● NOONAN
● OCS Group UK Ltd
● POWERTEST LIMITED
● Salisbury Workplace Services Ltd
● Serco Ltd
● Servest Group Ltd
● Skanska Construction UK Limited
● Sodexo
Lot 1 Winners
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Baachu Lot 1 Comments
Lots Lot 1a Lot 1b Lot 1c
Contract value £0 - £7m £7m - £50m £50m+
Expected suppliers 75 – 100 50 25
Shortlisted suppliers 27 35 21
1. Suppliers can only be in two lots
Interesting to note few providers used two legal entities to be in all three lots
2. CCS marketed next generation framework to be more SME friendly expected 70% supplier to be SMEs
Less success as only 27 suppliers shortlisted for Lot1a, around 10 suppliers are SMEs
3. All suppliers (excl. Carilion) in RMS 1056 - previous FM framework managed to secure a place in new FM Marketplace (RM3830)
4. None of the BMAS (Building Materials and Associated Services) framework suppliers got shortlisted in the new FM framework
5. Lot1 Framework was expected to Go live in May but going live in August
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Reach out to us at [email protected], and
we will be glad to support your specific
growth requirements, just as we assist
numerous local, national and international
business services companies.
You can find Baachu Facilities management market sizing report - https://bit.ly/2NqQtQH
Copyright © 2018 by Baachu
At Baachu, we design and implement simple, sustainable and data driven outsourcing solutions every day.
Our vision is to be the world’s premier research driven, technology enabled outsourcing capability partner achieving sustainable results for our customers, building fulfilling careers for our people and earning a fair return on the value we deliver.
Our culture is based on five values – capability, creativity, credibility, connections and confidence. We call our values “multipliers” - the combination of 5Cs that enables us to grow and serve as a powerful integrated business. These values are the essence of how we behave, what we believe, what we expect, who we are, what we deliver, and what we exist for.
Why Baachu?Baachu’s solutions aim to integrate growth consulting, bespoke research, data analytics, subscription products, bid and capture support to enable our clients achieve their goals.
Contact:
Baskar S Sundaram
Director, Baachu
11th Floor, Sussex Innovation, No.1
Croydon, 12-16 Addiscombe Rd,
Croydon CR0 0XT
0771 819 3599
020 818 13602