Issue - meetings

1. A 5-year contract (with an option to extend for a further 2 years) to Interserve (Facilities Management) Ltd for the delivery of the Facilities Management Services (FMS) be awarded.
2. That authority is delegated to the Corporate Director Finance & Operations in consultation with the Portfolio Holder, Finance & Resources, to initiate the 2 year extension period subject to satisfactory financial and operational performance, and that any extension is within budget.
3. That authority is delegated to the Portfolio Holder, Finance & Resources to extend the scope of this contract to include the buildings/assets in Phase 2 (Berkhamsted Civic Centre, Tring Town Hall and Hemel Hempstead Old Town Hall), subject to the delivery of a business case demonstrating the benefits of such inclusion, and that any extension of scope is within budget.
4. A report back to Cabinet to seek approval to extend the scope of this contract to include the buildings/assets in Phase 3 (any other buildings/assets where it was felt it may be beneficial to be included), subject to the delivery of a business case demonstrating the benefits of such inclusion, and that any extension of scope is within budget was approved.

Decision

1. A 5-year contract (with an option to extend for a further 2 years) to Interserve (Facilities Management) Ltd for the delivery of the Facilities Management Services (FMS) be awarded.
2. That authority is delegated to the Corporate Director Finance & Operations in consultation with the Portfolio Holder, Finance & Resources, to initiate the 2 year extension period subject to satisfactory financial and operational performance, and that any extension is within budget.
3. That authority is delegated to the Portfolio Holder, Finance & Resources to extend the scope of this contract to include the buildings/assets in Phase 2 (Berkhamsted Civic Centre, Tring Town Hall and Hemel Hempstead Old Town Hall), subject to the delivery of a business case demonstrating the benefits of such inclusion, and that any extension of scope is within budget.
4. A report back to Cabinet to seek approval to extend the scope of this contract to include the buildings/assets in Phase 3 (any other buildings/assets where it was felt it may be beneficial to be included), subject to the delivery of a business case demonstrating the benefits of such inclusion, and that any extension of scope is within budget was approved.

Reason for Decision

To seek Cabinet approval to award a contract for the delivery of Facilities Management Services.

Implications

Financial

The cost of the FMS is made up from 2 elements.

·         The first element is the lump sum charges and these are the known costs for services that will be constantly delivered each month (porterage services, security, cleaning etc.).

·         The second element is the ‘New Works’ process, these costs are unknown and will be delivered on an ad-hoc basis as required (building repairs over £500 (comprehensive liability threshold), specialist waste disposal, locksmith services etc.).

Due to the second element of the costs we are unable to provide a precise contract value, but can confirm that the cost of the FMS contract will be covered from within existing budgets.

Value for Money

The award of this contract from the Crown Commercial Services (CCS) framework agreement will have the following implications on value for money;

·         A consistent approach to specifications, a common set of service level requirements and standards, a standard set of terms and conditions, scope and key performance indicators.

·         Addresses sustainability issues by incorporating the Government Buying Standards, energy efficiency, water consumption and waste minimisation.

·         Reduced fees for poor performance meaning that poor performance will result in reduced payments to the suppliers.

·         Value for money is gained through better management of cost and performance data.

·         NEC3 Term Services Contract is the form of contract to be used for call-off contracts; it includes 10 key performance indicators including one for innovation/gain share.

·         NEC3 Term Services Contract is the form of contract to be used for call-off contracts; it includes 10 key performance indicators including one for innovation/gain share.

·         Savings in the region of 15% through better buying, leverage, aggregation and standardisation.

Savings in the region of 15% through better buying, leverage, aggregation and standardisation.

Risk Implications

The awarding of this contract has  ...  view the full minutes text for item 98