Approval to issue the Invitation To Negotiate (ITN) for the re-tendering of Property Services Facilities Management Information Centre

Report: 12
Date: 7 April 2005
By: Commissioner

Summary

This report informs Members of the current status of the tendering activity for the outsourced Property Services Facilities Management Information Centre (FMIC) and seeks Members’ approval to issue the Invitation to Negotiate (ITN) documentation to a qualified short-list of bidders.

A. Recommendation

That Members are asked to:

1. Approve the issue of the Invitation to Negotiate (ITN) for the tendering of Property Services Facilities Management Information Centre (FMIC) to the qualified short-list of bidders detailed in exempt Appendix 1.

B. Supporting information

1. In 2002 and 2003, MPA Finance Committee approved the MPS’s proposed strategy for re-tendering those services previously outsourced. This included the creation of a dedicated programme, managed within Procurement Services, to undertake the review of the sourcing requirements for these services and the re-tendering of the contracts.

2. Known as the Outsource Services (OS) Programme, the programme covers Information Communication and Technology (ICT), Pay and Pensions, Transport and Property Services. Following the procurement route adopted by the Pay and Pensions and ICT workstreams, the Property Services workstream have developed both sourcing and packaging strategies for the future provision of Facilities Management Services.

3. The strategies were developed by way of a comprehensive consultation process with senior MPS stakeholders; key contacts in other organisations receiving similar services and suppliers of differing, but related, property services. Views were sought on packaging, transition, transfer of data, contract duration, staffing/TUPE issues, attractiveness of the potential deal, market trends and current best practice.

4. The Facilities Management (FM) Strategy is dependent upon a fully integrated Information Centre that is designed to provide the MPS with robust factual management information, both for FM and more widely across the estate. This will monitor real time activity of the Facilities Management providers, including management and performance information, benchmarking, valuation and audit of variable works in year. Linked with this is the responsibility for the management and monitoring of statutory inspections, safe systems of work, risk management, independent condition surveys, tests and inspections and maintenance of statutory registers.

5. This report refers specifically to the tendering of the Facilities Management Information Centre (FMIC) service which is the first strand of the Property Services’ FM Strategy.

Procurement Approach

6. The procurement route adopted for re-tendering the services within the OS Programme is the standard European Union (EU) “negotiated” route. This approach was approved by the Director of Procurement Services, having taken legal advice, and endorsed by the Outsource Contracts Steering Group (OCSG) on 25 January 2004.

7. When the exact requirement of the products/services being tendered is known, the MPA’s standard approach to procurement is to follow the EU’s “restricted” procurement route that involves the issue of an “Invitation to Tender (ITT)” at the contract stage.

8. In this instance, there are variations between the products/services offered by market providers and as a result, an ITT approach is not appropriate. On the advice from the former Deputy Treasurer (now Treasurer) of the MPA and the Programme’s appointed legal advisers on these matters, the MPA Contract Regulations for this ITN have been designed to reflect ITT Regulations throughout.

Qualification Phase

9. The OJEU notice for the provision of Property Services FMIC Services was published on 1 November 2004, giving a response deadline of 17 December 2004. Details of the responses received, and the bidders who have been short listed by the evaluation team are detailed in exempt Appendix 1.

Commercial Strategy

10. The Property Services’ FMIC Commercial Strategy mirrors the OS Programme Commercial Strategy. The strategy identifies the commercial positions the MPA will adopt to best meet its overall business needs and to develop appropriate terms and conditions and commercial requirements to inform negotiations with bidders. It is designed to ensure that the MPA retains sufficient flexibility and choice over supply options and ensures value for money (VFM) is maintained throughout the term of the contract.

11. A summary of business needs and requirements developed by Property Services are detailed in exempt Appendix 2.

Timetable

12. Subject to approval of this report, the MPS proposes to issue the ITN documentation to the short-listed bidders in late April 2005. The proposed timetable showing key procurement milestones thereafter is detailed in Appendix 3.

C. Equality and diversity implications

1. The procurement process will ensure that contracts are let to organisations that fully support the MPA’s equality and diversity policies.

2. Property Services’ Outsource Action Group has been set up to co-ordinate the consultation processes with MPS staff in regard to future outsourcing requirements. In addition, the OS Programme Director holds bi-monthly meetings with trade union representatives to provide regular updates on outsourcing procurement programmes.

D. Financial implications

1. There are none specific to this report at this stage of the procurement process. The financial implications related to the outsourcing of the FMIC will be reported following the completion of negotiations.

E. Legal implications

1. The proposed ITN procurement process is fully compliant with procurement regulations and all relevant EU and UK Government Directives.

2. At this stage of the procurement process the contract and terms and conditions are still subject to negotiation, but the drafts reflect the standard MPA terms and conditions.

3. The OS Programme draws on specialist technical and legal advice to minimise or manage any risks that may emerge during negotiations.

4. The ITN documentation includes all the usual commercially appropriate terms and no unduly onerous terms.

F. Background papers

• Open and Exempt Papers to Finance Committee – 10 July 2003 entitled “Appointment of Consultants to support the Outsource Services re-tendering programme and the Procurement Business Process Improvement Programme”

G. Contact details

Report author: Alan Croney – Director of Property Services

For more information contact:

MPA general: 020 7202 0202
Media enquiries: 020 7202 0217/18

Appendix 1 & 2

Appendix 1 and 2 are exempt papers.

Appendix 3

Property Services FMIC Timetable

The timetable showing key PS FMIC services procurement milestones is detailed below:

• FMIC ITN Issue April 2005
• FMIC ITN Responses Due June 2005
• FMIC BAFO Responses Due September 2005
• FMIC Contract Start Date November 2005

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