Salford

1
Salford Wigan BSF ProjectMeet the
Buyer11th August 2009
2
Welcome

• Mr Rob Pickering
• Assistant Director
• Economic Futures
• Salford City Council

3
Agenda

• Introduction to TLP and the BSF Project
• Technical Introduction to the sample schemes
• Opportunities within Facilities Management
• Procurement and expression of interest policy
• Open questions

4
Purpose of today

• Communicate the opportunities in manufacture,
  construction and maintenance to Salford based
  companies through procurement of 9 new schools in
  Salford over the next 4 years.
• Construction opportunities 4 years
• Maintenance opportunities 25 years

5
Introduction to TLP

• Mr P Griffiths
• Project Manager
• Transformational Learning Partnership

6
What is Building Schools for the Future (BSF)?

• Every secondary school in England will benefit
  from BSF funding over the next 10 15 years
• 50 New Build
• 35 Remodel
• 15 Refurbishment
• Funding commitment of 2.4bn per year
• Includes ICT Managed Services
• Hardware
• Learning Platform
• Mixture of Funding mechanisms
• PFI
• Traditional DB

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Overview of BSF What is BSF?

• Reduces the number of competitive procurements
  that have to be carried out and streamlines the
  procurement process
• Groups schools together into large, high value
  packages
• Involves a strategic partner to deliver the
  long-term programme (the LEP Local Education
  Partnership)
• Optimizes impact on educational outcomes by
  integrating building design,FM, ICT and
  Childrens Services
• May deliver more than one phase of work, with
  several years between the different Waves of BSF
  funding
• Potential for significant follow-up projects
  under the exclusivity of the LEP(Local Education
  Partnership) for a period of 10 to 15 Years

8
What is the LEP? Local Education Partnership
Who are TLP ? Transformational Learning
Partnership.

LEP PARTNERS



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Overview of BSF What is the LEP?

• Local Education Partnership
• A long term strategic partner for the Local
  Authority (10 15 years)
• Joint Venture between Public and Private sectors
• 80 Private Sector
• 10 Local Authority
• 10 BSFI (Central Government)
• Purpose of the LEP
• Procure and deliver each phase of the BSF Scheme
  The LEP Contract is for 10 years with an option
  to extend for a further 5 years.
• Procure and deliver ICT Services to all Secondary
  Schools
• Provide additional services to the Local
  Authority
• Primary schools
• Primary Health
• Leisure / Libraries
• CPD, Training and Wider ICT services

10
Bid Process Selection

• OJEU
• PQQ/ITPD(Pre Qualification Questionnaire/Invitatio
  n to proceed to dialogue)
• ITCD Issued(Invitation to continue dialogue)
• Initial ITCD Bid Submission
• Presentation of Initial Bid
• Clarification Period
• Issue Draft ITSFB(Invitation to submit final
  bid)
• Final ITSFB/ Close Dialogue
• Receipt of Final Bid
• Select Preferred Bidder

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Overview of BSF Partnership

• Key Success Criteria
• BSF is not a building improvement programme but
  one that transforms the education delivery
  provided and raises expectations and other
  associated improvements to the local communities.
  
• TLP have developed extensive proposals about how
  it will embrace Partnership Working with the
  Local Authority to the benefit of the BSF project
  and the wider community. Proposals include
• The development of an extensive supply chain
  which has the ability to deliver short-term as
  well as long-term requirements of the project and
  to act responsively to changing needs and demands
  from the Client.
• The provision of Continuing Professional
  Development (CPD) to pupils allowing them to
  engage in a range of activities relating to the
  BSF programme and supply chain partners.
• Commitment to developing employing local labour
  during construction the 25 year Service
  Delivery phase.
• Achievement of Collective Partnership Targets
  CPTs

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Salford and Wigan BSF Partners

• Equity/ Sub debt partners
• Private sector partners - TLP Consortium (80 of
  LEP)
• Hochtief PPP Solutions - 50.0
• Laing ORourke Ltd - 50.0
• RM Education plc Non Investing member
• Public sector partners
• Salford and Wigan Council - 10.0
• Partnership for schools - 10.0
• Service Providers
• Design Construction - Laing ORourke
• Design Construction G J Seddon
• FM - HOCHTIEF FM
• ICT - Research Machines

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Overview of SWBSF Salford Sample Schools
Salford Phase 1
14
Overview of BSF Salford Phase 2
Salford Phase 2
15
Overview of BSF Wigan Schools
Wigan
Programmes for the Wigan schools have not been
finalised at this stage. There will be 3 Phases
totalling approximately 12 schools.
16
Technical Introduction

• Mr Mark Platt
• Laing ORourke Construction North
• Supply Chain Partner to TLP
• Responsible for Design and Delivery. Speaking on
  behalf of LORCN and GJ Seddons.

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Important Why LORCN and G J Seddon

• SYNERGY!
• Same family owned ethos
• Same direct employment ethos
• Same commitment to training and worklessness
• Members of the Rethinking Construction Framework
  Salford's existing supply chain
• Members of the Salford Construction Partnership

18
Award Timeline

• Salford Education Authorities current schedule
  for the DC Work stream
• Preferred Bidder Appointed 04-Jun-09
• Full Planning Applications submitted
  05-Jun-09
• Phase 2 Affordability check 07-Aug-09
• Financial Close 02-Oct-09
• Contract Commencement 05-Oct-09
• Start on site Sample schemes Oct / Nov
  09
• Handover Sample schemes for service Sept 11
• FC Phase 2 schemes Aug 10
• Handover phase 2 schemes Sept 12

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Why are you here, what work is available through
the DC work stream?

• Traditional works packages approx 60 per
  project
• Stand alone Enabling works projects
• perhaps as Principle Contractor
• Stand alone demolition contracts
• perhaps as principle contractor

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Transformational Learning

• What is it?
• 2010 / 2020 and beyond
• Open Learning zones not cells and bells
• ICT rich
• FFE to lead the learning not support it
• Schools within schools
• Flexibility of structure

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Ethos of design Design for manufacture
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Large span kit of parts
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Why DFMA (off site)

• Programme savings
• End product cost saving
• Lifecycle saving
• Kit of parts Continuous improvement
• Improved safety performance
• Concrete frame solution thermal mass
• Carbon calculator funding
• Satisfies the requirements of CABE
• Major LOR investment Available for others

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One size does not fit all

• Portfolio may still require steel framed
  solutions
• Portfolio will still require traditional trades
• Authority wishes to procure variety options.
• Tried and trusted to support cutting edge

25
Key points around the design.

• Mixed mode ventilation
• Strong use of natural light
• Exposed concrete soffits thermal mass
• No ceilings
• Limited wet trades

26
Sample schemes

• Walkden High School
• Gifa 12,566m2, pupils 1500, value 29m
• Irlam and Cadishead Community High School.
• Gifa 10,440m2, pupils 1050, value 26.5m

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The Walkden site
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Walkden Programme summary

• Enabling works start on Site - 16th November
  2009
• 15 weeks primarily access and stats works
• Core construction works 70 weeks
• ICT commission and Decant 6 week period
• Service Availability - 5th September 2011
• Completion to North Site 28th February 2012
  (not fully available)
• Total weeks inc North Site 102 weeks

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The Irlam and Cadishead site
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ICCHS programme summary

• Start on Site Enabling Works 16th November 2009
  
• 15 weeks on access, demolition and stats
• Core construction works - 70 weeks
• ICT commission and Decant 6 week period
• Service Availability 5th September 2011
• Demolition to existing school and landscaping
  23 weeks
• Total weeks 100 weeks

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Internal finishes

• Specification
• Design life
• Robust and PFI savvy
• Acceptance that upfront cost can lead to long
  term cost benefit
• No longer lowest price wins performance
  based.
• Easy maintenance / easy replacement
• Protection from unavailability
• Ability to assist in learning

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What is our aspiration?

• To form a kit of parts for the Salford
  portfolio The Project DNA that roles out
• To develop a local supply chain that supports
  this DNA through material supply, manufacture and
  delivery
• To keep the money In Salford
• Provide a WIN WIN situation.
• Short term goal have a least one Salford
  Contractor on the tender list for each package
  2 projects x 60 packages 120 opportunities

41
Opportunities within FM

• Mr Roland Shaw
• Hochtief FM
• Supply Chain Partner to TLP

42
Experience

• Salford Schools

The Salford Schools contract is one of 4
contracts that form the largest education
refinancing deal in the secondary market. The
contract, which was taken over by HOCHTIEF
Facility Management in October 2007, comprises
the delivery of Facility Management solutions to
47 schools in the North West of England in
Salford, Liverpool, Kirklees and the Wirral. The
total value of FM services over the remaining
life of the projects is in excess of 200
million, and involved the transfer of nearly 600
staff including technical staff, caretakers,
cleaners, helpdesk, administration, HR,
management and TPI staff to an estate measuring
300,000 SqM.

• Scope of Services
• Helpdesk
• Planned Maintenance
• Reactive Maintenance
• Grounds Maintenance
• FM Management
• Cleaning
• Caretaking

• Pest Control
• Utilities Management
• Window Cleaning
• ICT Infrastructure Maintenance
• Security and Asset Management

• Salford Schools
• Chatsworth High School
• New Park School
• Oakwood High School

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Wider transformation

• Pupil Training Scheme
• Pilot Scheme

School Bag 2 Tool Bag
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Pupil Training Scheme

• Paid work experience
• Unisex Scheme
• Open to all eligible Students
• Formal Interview with HTFM
• Selection will be in conjunction with teaching
  staff
• Will gain experience within all aspects of our
  business Caretaking, Technical Services, Grounds
  Maintenance, Cleaning, Administration
• Each pupil will receive a Reference/ Certificate
  after completion of training

45
Procurement and expression of interest policy

• Mr M Platt
• Laing ORourke
• Supply Chain Partner to TLP

46
Honesty

• This is a PFI contract
• Very onerous terms from Client to Main contractor
• Contract will be stepped down to the supply chain
  to share the risk no exceptions
• Warranties and bonds required by the funder
• Lump sum tender requirement
• Exit price to match entry price

47
Materials

• Rigid and robust performance specification
• Design life criteria
• Cost and performance to be lifecycle modelled
• Funder produced Prohibited materials list

48
Failure

• PFI demands a penalty culture
• If materials, specification or workmanship fails
  against the contract then unavailability
  charges can be levied
• Substantial defect period product life not the
  traditional 12 month 12 year. Concession period
  is 25 years.
• Rapid response times required
• This is not a traditional contract
• Remember and consider this before embarking on
  this journey.

49
Open Questions

• Chaired by
• Mr Geoff Lightford
• Salford City Council

50
Break out session

• Please take the opportunity to meet
  representatives of Laing ORourke, GJ Seddons and
  Hochtief and register your interest in the break
  out rooms.
• Thank you for your attendance today