SEC Procurement

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SEC Procurement

• Mary Bennell,
• Director Procurement and Assets,
• Amicus Horizon Group

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Procurement during business planning stage

• External and Communal Area Painting- 1066 ,Rother
  Homes, Southern Horizon and Kelsey.
• Contract awarded to Colours Decorating in May
  2007.
• Internal and External Building Works Framework
  available to all members .
• Framework signed September 2007

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Procurement during business planning stage

• Lift Maintenance Swale, West Kent and Town and
  Country Procurement nearly complete.
• Grounds Maintenance - West Kent ,Town and Country
  and Maidstone Housing Trust. Procurement nearly
  complete.

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Procurement in Implementation Phase

• Gas servicing and heating installations
• Boilers
• Doors and Windows
• Digital Aerials
• Warden Call and door entry

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Internal and External Building Works Framework
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Framework Volumes

• 18.5m over 5 years - confirmed
• 70m over 5 years - potential based on members
  volumes

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Scope

• Internal refurbishment works, including but not
  limited to new kitchens and bathrooms.
• External repairs and improvements
• Maintenance and improvement to external envelopes
  including walls roofs and rainwater goods
• External works to fencing and hard landscaped
  areas
• Associated partnering and planning supervisor
  services.
• Call off contracts will either be ongoing Term
  Programmes throughout the life of the Framework
  or one off Projects.

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Volumes
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The Framework Lots

• Lot 1- 250,000 per annum per contract with a
  member-10 contractors
• Lot 2 - 250,000 to 1 million per annum
  9 contractors
• Lot 3 - Over 1 million per annum- 6 contractors

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Lot 1 Contractors

• Booker Best
• Lakehouse Contracts
• Crispin Borst Ltd
• Fairhurst Ward Abbots Ltd
• MITIE Property Services (UK) Ltd
• Apollo London Limited
• Ian Williams Ltd
• DCB (Kent) Ltd
• BSW Building Services Ltd
• B.A. Troke Son Ltd

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Lot 2 Contractors

• Lakehouse Contracts
• Crispin Borst Ltd
• Booker Best
• Apollo London Limited
• Fairhurst Ward Abbots Ltd
• MITIE Property Services (UK) Ltd
• BSW Building Services Ltd
• Ian Williams Ltd
• DCB (Kent) Ltd

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Lot 3 Contractors

• Lakehouse Contracts
• Crispin Borst Ltd
• Apollo London Limited
• RR Richardson Ltd
• MITIE Property Services (UK)Ltd
• Fairhurst Ward Abbots Ltd

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The Framework Agreement

• NCA Template Document
• Schedule 1 Consortium Programme
• Schedule 2 SEC Framework Documents
• Schedule 3 Model Partnering Documents
• Schedule 4 Framework KPIs and Targets
• Schedule 5 Framework Programme
• Schedule 6 Form of Joining Agreement
• Schedule 7 Form of Risk Register
• Schedule 8 Direct Call-Off with Price
  Confirmation Form of Instruction and Brief
• Schedule 9 Mini Competition Rules and Form of
  Tender
• Schedule 10 TPC2005 Form of Contract (SEC
  version dated 31 July 2007)
• Schedule 11 Strategic Alliancing Agreement

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KPIs and Targets

• Commissioning Client satisfaction-Product
• Commissioning Client satisfaction-Overall service
  
• Resident satisfaction product
• Resident satisfaction service
• Snagging at handover
• Predictability cost
• Predictability time
• Safety
• Average unit cost
• Cost reduction
• Waste reduction
• Employment and training

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Price Framework

• Pricing on basis of standard specification for
  kitchen and bathroom
• Plus minus on NHF SOR 5.1
• Overall costs for installing 50,100,500 kitchens
  and bathrooms
• Open book plus percentage for prelims, overheads
  and margin

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Call offs

• There are two methods of call-off under the SEC
  Framework Agreement for any one project-
• (i) Direct Selection of a single Constructor with
  or without price confirmation
• ii) Mini-competition between a number of
  constructors.

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Call off - Direct selection 1

• Call off basis
• The nature of the Services to be performed by the
  Constructor/required by the Client
• The Framework Proposals (i.e. the tendered
  quality submission of the Constructor annexed at
  to each Framework Agreement)
• The prices set out in the Price Framework (i.e.
  as tendered by the Constructor annexed at
  Pricing Schedule in each Framework Agreement).

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Call off - Direct selection 2

• It is a condition of direct selection that the
  client chooses from the appropriate lot for the
  value for works and then selects the contractor
  in accordance with their ranking on the scores at
  the time of selection. The only reason for
  departing from this process is if the works are
  of a nature than the constructor cannot carry
  out those specific services or does not have the
  capacity .

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Call off - Direct selection 3 -The process

• Issue specifications to contractors/service
  providers and ask for price confirmation in
  accordance with the prices submitted in original
  bid .
• Use one of 3 pricing modes

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Direct Call offs Price confirmation

• Where the nature of the works required mean that
  the costs cannot be clearly agreed from the
  prices set out in the framework agreement, the
  client can draw up a price schedule in accordance
  with the percentages for SOR and for back office
  overheads and margins as set out in the price
  framework . This can then be sent with a form of
  instruction to the Constructor in the appropriate
  lot.

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Call offs - Mini competition 1

• The mini-competition procedure is set out at
  Schedule 10 of the SEC Framework Agreement and is
  governed by the Mini-Competition Rules set out
  in that schedule.

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Call offs - Mini competition 2

• To summarise
• The Client must send out a Mini-Tender, which
  includes all of the relevant details of the
  Project, the Model Brief, the relevant pricing
  mechanism and the Project-specific evaluation
  criteria to be applied and invite tenders to be
  submitted on the basis of this information.
• Strictly speaking all constructors appointed to
  the eligible lot must be asked to take part in
  the mini tender but the nature and location of
  the works may automatically preclude some
  constructors and some may not wish to take part.

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Mini tender

• Issue mini tender with specification to those
  going to bid.
• Including specific requirements but none that
  substantially change scope of the framework or
  framework terms.
• Request reasonable return date
• When tenders come back evaluate as a normal
  tender but only on criteria in mini tender.

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Which method of call off is used

• Can you call off directly using one of the
  pricing mechanisms?
• How far away in time are we from the original bid
  prices ?

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Demonstrating value for money

• Direct call of on basis of original prices can
  refer back to original framework bid
• Direct call off on basis of SOR refer to SOR
  levels in original frameworks
• Open book will have to make reference to rates
  but also to similar projects and benchmarks as
  carried out
• For large value projects independent Qs report on
  value for money may be required.
• Mini tenders results of mini tender will de
  facto demonstrate

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Choosing contractors to call off

• Direct go to top of list unless specific capacity
  or logistical reasons.
• Capacity Amount of work contractor already
  carrying out for association /group
• Agreement with other members doing call offs on
  capacity.
• Need to consider individual members exposure to
  certain contractors

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Capacity and logistical reasons

• Expertise
• Other business reasons ie already doing an
  earlier phase of the project
• Poor performance recorded through current
  framework or earlier dispute
• Logistical - Location

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Who is using the Frameworks ?

• 1066 HA
• Rother Homes
• SLFHA Ltd
• Southern Horizon
• Russet

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The next steps

• Assessing performance on current framework
• Planning for 08/09 and beyond to the end of the
  framework.
• Client core group meets in January 2008
• Setting up contractors core group

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• Thank you