Transcript Visa Card Presentation

Outsourcing Facilities
Management
PRESENTERS
Joanna Frost
Crescent Purchasing Consortium
Tel: 07990 763974
email: [email protected]
David Thoms
Tenet Education Services
Tel: 01376 511411
email: [email protected]
AGENDA
1. What is facilities management
2. What is integrated facilities management
3. In-house vs outsourced
4. Considerations when outsourcing
What is Facilities Management?
“Facilities management is a profession that encompasses
multiple disciplines to ensure functionality of the built
environment by integrating people, place, process and
technology” – International Facility Management Association
PPM of
building
assets
Cleaning
Manned
security
Grounds
maintenance
Caretaking
Waste
disposal
Catering
What is Integrated Facilities
Management?
Incorporating a number of services into a single contract
for delivery by one external contractor.
Usually split into hard and soft services contracts
Hard services
Planned preventative
and reactive
maintenance to
building fabric and its
assets and water
management
Soft services
Cleaning, catering,
manned guarding,
caretaking, waste
disposal, reception,
post room, grounds
maintenance
Integrated Facilities Management
Key
advantages
Key
disadvantages
• Single contractor to communicate with
• Cost savings
• Potential for multi task full time positions
• ‘Eggs in one basket’
• Comprehensive contract management required
• Only effective if most soft services included
Integrated Facilities Management
The Supply Market – Examples
Soft Services
Companies
(sub contract
hard services)
Hard Services
Companies
(sub contract
soft services)
• Sodexo Facilities
Management
• Facilicom
Facilities Solutions
• Balfour Beatty
Workplace
• Norland Facilities
Management
Soft and Hard
Services
Companies
• ISS Facilities
Services
• Mitie Integrated
Facilities
Management
Integrated Facilities Management
Case Study Hackney Community College
Outsourced all of the following services to a single provider in 2003:
Cleaning; Security; Campus Support (incl. Postal and Transport);
Waste Management; Reception/Switchboard; Building Maintenance;
Grounds Maintenance; Catering
Have achieved significant annual savings from the year prior to the outsourcing
to the present time, the total services comparable costs being as follows:
2002
£1.6m plus VAT
2003
£1.4m plus VAT
2008
£1.5m plus VAT
2013
£1.6m plus VAT
In-house vs Outsourced
A recent i‐FM survey* provides some perspective about the
service provision and reports a larger than expected proportion of
respondents (26%) providing all their FM services in‐house.
Just under a quarter (22%) were using individual external
suppliers for each service, with consequent supervisory cost and,
just over another quarter (26%) used a bundled or integrated
services approach, with two or more service lines delivered by a
single supplier.
6% of respondents said they have a integrated FM solution in
place, with 4% reporting a single solution for FM and property
services.
*FM Market Survey 2012 data from i‐fm website.
In-house vs Outsourced
In-house
advantages
Staff are direct
employees
In-house
disadvantages
In-house
review
Staff absence
Employment
package is often
better than external
contractor
Lack of expertise
No VAT payable on
the wage cost
Difficulty in
restructuring
services as
required
In-house
bid?
In-house vs Outsourced
Outsourced
advantages
Fewer staffing issues
for College
Efficiencies
Budget control
Outsourced
disadvantages
Experienced
management
and expertise
Employment
terms not as
generous
Lower costs
Contract
management
can be subject
to change
Restructuring of
service easily
achieved
VAT payable on
contract
Guaranteed
service levels
Time & effort
managing
contract
In-house vs Outsourced
“Regarding the move to outsourced provision, in our
circumstances – moving from two to one site and dealing with
the new building, I have little doubt it was the right decision for
us. As well as delivering some savings having a professional
cleaning company take control of the staffing shifts, workloads
etc to meet the new requirements took a very significant
amount of management time away from the Academy to enable
us to concentrate on other matters. Enabled a breaking away
from “old habits” that had become ingrained and would have
been difficult to shift without the fundamental change.”
Considerations when Outsourcing
Procurement regulations
Framework agreements
• Value of contract over £172k
regulations set out in The Public
Contracts Regulations 2006 apply
• Negates the need to publish an
OJEU notice and adhere to tender
timeframes
• OJEU contract notice publication
• Negates the need to select
suppliers
• Adherence to tender timeframes
• Adherence to specification,
selection and award criteria
regulations
• Provides example specifications,
sets award criteria and terms of
contract
• Adherence to standstill process
• Reduces risk of supplier
challenge
• Risk of supplier challenge
• CPC has 5 facilities frameworks
Considerations when Outsourcing
Stakeholders
Specifications & tender
information
• Estates
• Timetable
• Finance
• Input vs output specifications
• Procurement
• Cleaning – detailed breakdown of
square metres
• Human Resources
• PPM – asset list – response times
• Affected Employees
• Security – hours, length of shifts
Communications
• Catering – sales info, investment
Considerations when Outsourcing
Transfer of Undertaking
Protection of Employment
(TUPE)
Contract management
• Information from HR
• Key Performance Indicators
• Distribution of TUPE information
to bidders
• Default clauses
OJEU notice
Data protection
• Local Authority Pensions
• Consultation with employees
• Exit strategies
• Regular contract management
meetings
• Supplier Development
• Innovation
Penalties
Legal advice
Summary
Review in-house provision
Consider what services could be outsourced
When outsourcing:
•
•
•
•
•
Set up a cross functional team
Consider the procurement options
Produce the documentation
Allow sufficient time
Manage the contract effectively