The Future Defence Infrastructure Services Programme FDIS Industry - - PowerPoint PPT Presentation

The Future Defence Infrastructure Services Programme

FDIS Industry Supplier Briefing Tidworth Garrison Theatre

Friday 11th May 2018

The Future Defence Infrastructure Services Programme

Mr Jon Hewlett FDIS Programme Manager DIO Delivery Continuity Team

Some background on DIO

• DIO plays a vital role in supporting our Armed Forces by building, maintaining and

servicing what the men and women who serve our country need to live, work, train and deploy on operations.

• We are part of the MOD and acts as its Delivery Agent responsible for:
• Advising on how its Customers’ infrastructure requirements can be met;
• Acting as the Infrastructure SME and Technical Authority, providing strategic

and tactical advice and assurance across the estate;

• Maintaining the Single Source of Authoritative Data (condition, utilisation,

cost, etc.) for the whole estate;

• Stewardship, safeguarding the integrity of the Defence estate and

infrastructure.

Our Vision

That DIO will become an expert estate services business, focused on delivering:

• A Better Estate – using asset information and professional skills to help our

customers make important infrastructure decisions.

• A Better Service – serving our armed forces customers every day in order to

make the 'lived experience' better and ensure safe management and delivery of military infrastructure.

• A Better Business – becoming a centre of excellence for estate expertise,

information and advice in order to improve how we manage contracts and empower our people.

DIO Delivery Continuity Team DCT – Delivering Strategic Solutions

• Part of the of our Chief Operating Officer’s (Geoff Robson) Customer

Delivery team.

• Helen Taylor (Head DCT) is responsible for conducting strategic analysis and

review of DIO’s future contract requirements to develop recommended delivery options.

• These recommendations are then converted into effective and efficient

enabling contracts for FM and other estate services.

• Portfolio of programmes and projects:

Hestia Future Overseas Procurement Unarmed Guarding UK Capital Projects RLAP FDIS

Future Defence Infrastructure Services Programme

• The FDIS Senior Responsible Owner (SRO) is the DIO Regional Delivery

Director, Richard McKinney.

• The Programme has considered how Facilities Management (FM) on the UK

Defence estate will be delivered once the current generation of contracts come to an end.

• This included all Hard FM and Soft FM services required to maintain and

support operational outputs and capability.

• Existing contracts included ‘in scope’ are the four Next Generation Estate

Contract (NGEC) Regional Primes, the National Housing Prime, the National Training Estate Prime, the US Visiting Forces Prime and the seven HESTIA Regional contracts.

• FDIS covers all sites and establishments on the UK

Defence estate, except those with long-term contracts already in place (e.g. Main Building PFI, naval base contracts,etc).

• Hard and Soft FM services should be kept separate
• FDIS will be delivered in phases:
• Tranche 1 will replace the current Hard FM arrangements i.e. the

NGEC contracts.

• Tranche 2 will consider the replacement of the Soft FM arrangements

i.e. the Hestia contracts.

• The FDIS Programme will use the new Crown Commercial Services FM

Marketplace as it ‘route to market’.

• There should be a staged implementation of the Regional FM contracts.

The Programme’s Recommended Approach

The FDIS Contracting Model

Hard FM SW Hard FM Central Hard FM SE Hard FM Scot & NI Accommodation Maintenance SW Accommodation Maintenance Central Accommodation Maintenance SE Accommodation Maintenance Scot & NI National Accommodation Management National Training Management and FM services

Accommodation A National Accommodation Management contract providing a common user experience and delivering customer,

• ccupancy and void management services.

Four regional Accommodation Maintenance contracts that ensure statutory and mandatory compliance of SFA estate and undertake reactive and planned maintenance and void preparation services. Training Estate A National Training Management contract providing a common user experience for the allocation and use of the training estate. Supporting Hard and Soft FM services will be included in this contract where they directly enable training estate availability and use. Built Estate Four regional Hard FM contracts. These contracts are being designed with greater flexibility in mind to enable funding flows & support different capability requirements across TLBs. The contracts will be designed with the flexibility to deliver non- core services and works to the Accommodation and Training estates.

FDIS Contract Model

Hard FM SW Hard FM Central Hard FM SE Hard FM Scot & NI Housing Maintenance SW Housing Maintenance Central Housing Maintenance SE Housing Maintenance Scot & NI National Housing Management National Training Management and FM services

TBC

Crown Commercial Services FM Marketplace

Single procurement through CCS Housing Maintenance Lot 2B in Phase 2 of FM Marketplace Defence FM Lot 3 in Phase 2 of FM Marketplace Housing Management Lot 2A in Phase 2 of FM Marketplace

The FDIS ‘route to market’

• National Training Management contract in a subsequent lot.
• Managed through CCS framework procurement procedures.
• DIO will call-off contracts once suppliers have been awarded places
• n the framework.

Key Programme Milestones

Summer 18 Initiation of Procurement – Phase 2 CCS OJEU released Winter 18 DIO call off contract tender initiated Winter 19 Main Gate Business Case approval / contract award Spring 20 Contract In Service Date – Region 1 Regional FM contract, Regional Accommodation Maintenance and National Accommodation Management contract.

The Regional Defence Estate Mr Andy Honnor Head – South East Region and PFIs

Challenges

Our Challenges

Regional Delivery

Regional Delivery Director Richard McKinney SE, PFI & Utilities - Andy Honnor SW & Reserve Forces and Cadet Associations - James Crosfield Central - Jason Day Scotland and NI - Moira Hassel

Key responsibilities Delivered in partnership with our suppliers

• Regional Compliance – manage statutory compliance within the region.
• Regional Delivery – deliver projects, facilities management and disposals to meet
• perational requirements and sustain defence capability.
• Customer Delivery – support the definition and delivery of customer TLB

programmes of work.

• Data stewardship – ensure estate information is accurate, maintained to the

required standards and kept up to date

Funding delegation to the Front Line Commands

What is changing What isn’t changing The responsibility for infrastructure requirement definition will transfer to the TLBs. DIO will continue to be the principal infrastructure delivery agent for TLBs

• n behalf of Defence

TLBs will have accountability to prioritise and endorse maintain and sustain activities. DIO, subject to agreed thresholds and business rules, will continue to commission low value works orders. DIO will no longer make investment decisions but will support customer TLBs to do so through effective planning, provision of data and information. DIO will continue to provide technical and commercial scrutiny of business cases and advise on VFM. DIO will have the ability to flex RDEL funding across fixed, variable and priority based funding costs with the agreement of the respective TLBs. DIO will continue to procure, manage and assure estate delivery contracts

• n behalf of Defence.

Note: FY1819 – transition year. Full delegation from April 19.

Organisational Roles and Responsibilities

Customer TLBs Delivery Agent (DIO in collaboration with its suppliers)

Defines TLB infrastructure strategic requirements to support delivery of Defence capability:

• Manages Infrastructure impact on

Capability Risks;

• Develops and maintains a TLB

Infrastructure Management Plan and Command Infrastructure Delivery Plans (CIDP) with the Delivery Agent;

• Act as SRO and Head of Establishment;
• Approves Business Cases within

delegation;

• Authorise Delivery Agent expenditure;
• Holds Delivery Agents to account for

delivery against the agreed CIDPs;

• Accepts infrastructure products and

services. Delivers services, including project delivery and facilities management, to Performance, Cost and Time standards:

• Awards and manages contracts with

suppliers;

• Advises Customers on Business Case

deliverability

• Develops and agrees CIDPs with all

Customers;

• Commits expenditure within delegation and

as authorised by Customer;

• Holds its Customers to account for delivery
• f their commitments against the agreed

CIDPs;

• Supports Infrastructure Expert in the

assurance and stewardship roles.

The importance of Supplier Relationship Management

Our Goals

• Transform DIO into a best practice infrastructure commissioning
• rganisation, driving performance through our suppliers.
• Establish customer-focused teams that are empowered to make decisions

and deliver what the customer needs.

How we will get there

• Regional teams that act as a single team with clear levels of ownership and

accountability.

• Effective contract management with robust performance measures to help

drive value for money and accountability.

• True partnership working with incentivisation, supply chain innovation and

continuous improvement.

• Good estate management to support customer decision making.
• A procurement plan that will ensure the right contracts are in place at the

right time.

The FDIS Regional FM Service

Mr Jon Hewlett FDIS Programme Manager DIO Delivery Continuity Team

FDIS Programme benefits Improved contract management Embed a collaborative approach to supplier relationship management to deliver improved

• utcomes.

Efficient estate management Enable choice by customer TLBs to make the most efficient use of available funding. Better decision-making Effective management of information to support decisions on the future direction of the Defence estate. Flexibility to meet changing customer requirements Enable a more agile approach to deliver changes to service requirements.

What will be different?

FDIS Programme benefits Consistent levels of supplier performance Adopt appropriate contract performance measures to incentivise service delivery. Compliance with mandated standards and policies Enable suppliers to maintain Statutory compliance across the estate. Improved levels of customer satisfaction Provide customer TLBs with choice over the level of service they will receive. Transparent financial control Ensure the necessary financial data is available to meet departmental funding commitments.

What will be different?

Workplace Services RM6089

FM Marketplace Phase 2 Lot 3 Defence FM

Paul Tuohy - Senior Category Lead Lynne Reah - DIO Commercial Lead

Workplace Services RM6089

Introducing Crown Commercial Service (CCS)

• We’re one of the biggest public procurement organisations in Europe and an Executive

Agency of the Cabinet Office.

• We lead on developing and implementing the UK’s public sector procurement policy and

delivering government’s commercial policy priorities.

• We help organisations across the whole of the public sector find the right commercial

solutions for around £12 billion of spend each year.

Commercial expertise great value deals significant savings 60% SME suppliers bulk buying power

We want to help our customers save £2 billion between 2016 and 2020

Workplace Services RM6089

Outline objectives

• Build on the performance delivered by existing CCS workplace frameworks and Phase 1
• Collaboration to ensure a model which meets and leverages market capabilities
• Needs of Central Government (DIO) and Wider Public Sector Customers met:
• Fit for purpose commercial model (pricing, T&C’s) suitable for our Customers needs
• Support to Government's relevant policy agenda
• Improve data transparency to enable robust decision making and performance/contract

management.

Lot 3 Defence FM Lot 2 Housing Lot 2A Housing Management Lot 2B Housing Maintenance - National

FM Marketplace Programme – Revised Lot Structure

FM Marketplace Phase 2 Workplace Services

Lot 1 Security Lot 1A Technical Security Lot 1B Physical Security

ITT ISSUE DATE - MID JULY 2018

Lot 2C Housing Maintenance - Regional

Workplace Services RM6089

Framework Procurement

CCS to procure Framework under the Open procedure Tender Rules

• No rules of engagement between lots
• JV’s and Consortia Welcome
• Cost / Quality (inc Management) - weighting ratio under development

Financial Risk Assessment - Industry Recognised Risk Score (tbd) plus audited, non- audited accounts & forecasts. Tender Presentations Presentations with Board / Senior Representatives mandatory as part of framework evaluation process, assessed by joint CCS / Defence team.

Workplace Services RM6089 Lot 3: Defence FM (strategy under development)

• National Hard FM (8 p

provi vider ers) for Defence only with Call Offs being performed on a Regional basis. Specification & Pricing all based on RM3830 models but with amendments to meet Defence requirements. Public Sector Contract to be used, with Defence specific amendments. New Call Off process to support delivery of fit for purpose innovative solutions

• modelled on “Competition with negotiated procedure”.

FM Marketplace Pricing Principles (under development)

Defence FM

• Maintenance services priced and evaluated at framework where practicable
• Used as maximum rates at call off
• Rates specified by circa 15 different building types
• Delivery of services to specified units of measure, e.g. m2
• Rolled up all inclusive service rates – labour, grades, qualifications, consumables,

support, equipment etc.

• Other hard FM services to be priced at call off

Workplace Services RM6089

Workplace Services RM6089

Transparency

Transparency requirement cross framework based on Open Book principles including (but not limited to):

• Management Overhead,
• Corporate Overhead,
• Profit percentages
• Detailed provision of Materials, Hours, Grades captured at Framework Call Off,
• Use of capped Rates in Call-Off e.g. for Additional Works Services

Workplace Services RM6089 FM Marketplace - Key Terms and Conditions

• Form of Agreement - aligned to RM3830

Public Sector Contract (Bespoke) FM & Defence Schedules Key Terms Insurance - to be determined Performance Management – % at risk based on 7 key areas. ISO Accreditations & Standards Cyber Essentials Plus 9001 (QMS) 14001 (Environmental) 27001 (Security) & Cyber Security Plus Working towards 44001 (Collaborative Working) 55001 (Asset Management)

Workplace Services RM6089 FM Marketplace - TUPE Approach

Based upon RM3830 approach TUPE risk premium based on actual TUPE data. (value is normalised based on the number of transferring employees and reviewed and reduced annually based on staff attrition) True-up post Award based on actuals transferred and inaccuracies only Cost of Change to be included in Year 1 only Allowance for redundancy to be included if needed

Workplace Services RM6089 FM Marketplace (Defence) - Call Off Principles

New “competition with Negotiation” Process as Defence requirements meet certain criteria such as: Needs require adaptation of readily available solutions Require design or innovative proposals Certain aspects will not be negotiated: Core Terms and Conditions Minimum Requirements Award Criteria Cost - Price / Quality / Management - weighting ratio to be determined, Further details will be defined at Call Off

Workplace Services RM6089

Next steps

• PIN release to the market - 22 February 18 ✓
• Customer and Supplier Engagement

○ We are running customer and stakeholder engagement programme in parallel ○ We have issued supplier and customer questionnaires - 22 February 18 ✓ ■ Now closed ✓ ○ 1:1’s have been completed with suppliers interested in defence and housing lots ✓ ○ Complete market and customer engagement programme Quarter 2 2018

• Review feedback, finalise sourcing design, build of documents - Early Quarter 2 2018
• Keep in Touch Supplier & Customer Webinars will be scheduled throughout the process
• Anticipate

ated ITT release – July 2 2018 18

• Framewo

ework rk award – December r 2018

Workplace Services RM6089

@gov_procurement Crown Commercial Service nextgenfm@crowncommercial.gov.uk www.gov.uk/ccs 0345 410 2222

Keeping in touch…..

SERVICE FAMILY ACCOMMODATION

Head DIO Accommodation Air Commodore Wendy Rothery

DIO Accommodation

Accommodation Mission Directive

DIO Purpose

Enable Defence to live, work, train and deploy at home and

• verseas

Accommodation Mission

Deliver and assure a quality accommodation service that meets the needs

• f Service personnel and Defence across the UK and Europe to support

Defence operational commitments

DIO Accommodation

Hd Accommodation

Strategic Support Plans & Requirements Estate Services Europe

Occupancy Services Substitute Accommodation Plans & Requirements Accommodation Policy Performance & Assurance Area Manager Germany Area Manager European Support Group Performance & Assurance Regional Manager North Regional Manager Central Regional Manager Southwest Regional Manager Southeast Programme Development Business Management

DIO Accommodation

What is Service Family Accommodation (SFA)?

• All Service personnel are entitled to either single or family

accommodation as part of their terms and conditions of service

• At present personnel who are married, in civil partnerships or

have primary responsibility for children are entitled to SFA

• Limited additional personnel are entitled to SFA by virtue of

appointment DIO Accommodation

The Housing Estate

• DIO Accommodation is one of

the largest providers of housing in the UK

• 49,722 UK SFA
• 85.9% of stock assessed as

Decent Homes+ DIO Accommodation

DIO Accommodation

The Housing Estate

• National Organisation
• Regional Delivery Model
• North:

8,068 properties

• Central:

12,643 properties

• Southwest:

14,436 properties

• Southeast:

14,575 properties

DIO Accommodation

Key Deliverables – Occupancy Services

• Applications & Allocations
• Move In & Move Out Appointments
• Occupancy Management
• Defence Accommodation Stores

DIO Accommodation

Key Deliverables – Estate Services

• Repairs & Maintenance
• Statutory & Mandatory Inspections
• Void Preparation & Management
• Grounds Maintenance
• SFA Upgrades

Key Deliverables – The Statistics

DIO Accommodation

FDIS Contracting Model

DIO Accommodation

National Accommodation Management

A National Accommodation Management contract providing a common user experience and delivering customer, occupancy and void management services

Regional Accommodation Maintenance

Four Regional Accommodation Maintenance contracts that ensure statutory and mandatory compliance of SFA Estate and undertake reactive and planned maintenance and void preparation services

DIO Accommodation

Future DIO

• DIO Accommodation remains as a

discrete National delivery organisation within the Customer Delivery Area of DIO

• Funding for SFA remains with DIO
• DIO Accommodation will continue to

manage expenditure & receipts

• TLBs will be provided with details of

spend and progress against the programme

DIO Accommodation

Future Service

ENABLERS CUSTOMER SERVICE

Customer Excellence

Well Defined Requirement Collaborative

Approach Consistent &

Equitable

Provision of Service

Single Point

• f Contact

Commercially

Taut Contract

Right First

Time

The FDIS Accommodation Service

Mr Jon Hewlett FDIS Programme Manager DIO Delivery Continuity Team

Mrs Miggins National Regional

Contract interfaces

e.g. Mrs Miggins’ boiler is broken

Cpl Miggins National Regional

Contract interfaces

e.g. Corporal Miggins has an assignment order

Workplace Services RM6089

FM Marketplace Phase 2 Lot 2 Housing

Paul Tuohy - CCS Category Lead Lynne Reah - DIO Commercial Lead

Workplace Services RM6089

Introducing Crown Commercial Service (CCS)

• We’re one of the biggest public procurement organisations in Europe and an Executive

Agency of the Cabinet Office.

• We lead on developing and implementing the UK’s public sector procurement policy and

delivering government’s commercial policy priorities.

• We help organisations across the whole of the public sector find the right commercial

solutions for around £12 billion of spend each year.

Commercial expertise great value deals significant savings 60% SME suppliers bulk buying power

We want to help our customers save £2 billion between 2016 and 2020

Lot 3 Defence FM Lot 2 Housing Lot 2A Housing Management Lot 2B Housing Maintenance - National

FM Marketplace Programme – Revised Lot Structure

FM Marketplace Phase 2 Workplace Services

Lot 1 Security Lot 1A Technical Security Lot 1B Physical Security

ITT ISSUE DATE - MID JULY 2018

Lot 2C Housing Maintenance - Regional

Workplace Services RM6089

Framework Procurement

CCS to procure Framework under the Open procedure Tender Rules

• No rules of engagement between lots
• JV’s and Consortia welcome
• Cost / Quality ( inc Management) – weighting ratio under development

Financial Risk Assessment - Industry recognised risk score (tbd) plus audited, non-audited accounts & forecasts. Tender Presentations - Presentations with Board / Senior Representatives mandatory as part of framework evaluation process, assessed by joint CCS / Defence team

Workplace Services RM6089 Lot 2: Housing (strategy under development)

• Lot 2a Housing Management (5 providers) providing:

Housing management, Occupancy Management, Void management Contact centre, Customer services e.g. occupancy scaling / scope to cover Defence One National Prime + system / tools & charities for say 6-12 Houses

Lot 2b Housing Maintenance - National (8 providers) providing:

Facilities management - statutory & mandatory compliance Maintenance services on residential properties and assets Horticultural services (grounds maintenance) Vacant / unoccupied property preparation

Workplace Services RM6089 Lot 2b: Housing - Design Principles (under development)

Key customer is Defence, but will be available for wider public sector use National coverage at Framework to support regional FDIS call off strategy Specification collaboratively developed by CCS / DIO to bring into line with market norms

FM Marketplace Pricing Principles (under development)

Housing Management – under development Housing Maintenance

• Maintenance services priced and evaluated at framework where practicable
• Used as maximum rates at call off
• Rates specified by Housing type
• Delivery of services to specified units of measure e.g. m2
• Rolled up all inclusive service rates – labour, grades, qualifications, consumables,

support, equipment etc.

• Other services to be priced at call off

Workplace Services RM6089

Workplace Services RM6089

Transparency

Transparency requirement cross framework based on Open Book principles including (but not limited to):

• Management Overhead,
• Corporate Overhead,
• Profit percentages
• Detailed provision of Materials, Hours, Grades captured at Framework Call Off,
• Use of capped Rates in Call-Off i.e for Additional Works Services

Workplace Services RM6089 FM Marketplace - Key Terms and Conditions

• Form of Agreement - aligned to RM3830

Public Sector Contract (Bespoke) FM & Defence Schedules Key Terms Insurance - to be determined Performance Management - % at risk based on 7 key areas ISO Accreditations & Standards Cyber Essentials Plus 9001 (QMS) 14001 (Environmental) 27001 (Security) & Cyber Security Plus Working towards 44001 (Collaborative Working) 55001 (Asset Management)

Workplace Services RM6089 FM Marketplace - TUPE Approach

Based upon RM3830 approach TUPE risk premium based on actual TUPE data. (value is normalised based on the number of transferring employees and reviewed and reduced annually based on staff attrition) True-up post Award based on actuals transferred and inaccuracies only Cost of Change to be included in Year 1 only Allowance for redundancy to be included if needed

Workplace Services RM6089 FM Marketplace (Defence) - Call Off Principles

New “Competition with Negotiation” Process as Defence requirements meet certain criteria such as: Needs require adaptation of readily available solutions Require design or innovative proposals Certain aspects will not be negotiated: Core Terms and Conditions Minimum Requirements Award Criteria Cost - Price / Quality / Management - weighting ratio to be determined, Further details defined at Call Off

Workplace Services RM6089

Next steps

• PIN release to the market - 22 February 18 ✓
• Customer and Supplier Engagement

○ We are running customer and stakeholder engagement programme in parallel ○ We have issued supplier and customer questionnaires - 22 February 18 ✓ ■ Now closed ✓ ○ 1:1’s have been completed with suppliers interested in defence and housing lots ✓ ○ Complete market and customer engagement programme Quarter 2 2018

• Review feedback, finalise sourcing design, build of documents - Early Quarter 2 2018
• Keep in Touch Supplier & Customer Webinars will be scheduled throughout the process
• Anticipated ITT release – July 2018
• Framework award – December 2018

Workplace Services RM6089

@gov_procurement Crown Commercial Service nextgenfm@crowncommercial.gov.uk www.gov.uk/ccs 0345 410 2222

Keeping in touch…..