1. London Highways Alliance Contract COLLABORATIVE PROCUREMENT 15 th October 2013

3. London’s population to grow 2031 7.9 million by 2013 8.10 million by 2016 8.37 million by 2021; and 8.63 million by 2026.

4. 33 Boroughs Each individual highway authority London Boroughs

6. What the road user sees Borough A Borough B

7. Can’t claim all the credit Midlands Highways Alliance South East Seven Eastern Highways Alliance

9. London wide borough contracts

11. The need for change Across London around £450m pa spent on highways related activities, via c100 contracts The range of prices for similar activities was considerable across the 34 London Authorities Huge scope for a much better service at a lower cost by use of collaborative contracts Recognition that something had to change Most people accept the benefits of collaboration the sticking point is always around the scale & who people want to collaborate with. Politics mustn't be allowed to get in the way.

12. LoHAC Development 2010 Transforming London Highways Board Established – 5 boroughs & TfL Joint bid made to Capital Ambitions for funding Sep 2010 Joint TfL and borough team formed – 3 TfL & 3 borough + joint review teams Oct 2011 OJEU notice published Nov 2011 PQQ issued Feb 2012 ITT issued June 2012 bids evaluated by joint TfL & borough teams Nov 2012 contracts awarded 1 st April 2013 start

13. Great support from htma Helped to develop our strategy Circulated a “views” questionnaire to their members. – How many contracts, value, scope, PI’s, length, reward mechanisms etc. Didn't always agree with them

14. LoHAC – The Three in One Contract 1.Maintenance and improvements 2.Related services 3.Professional services Authority only takes the services they need No minimal contractual commitment No joining or annual membership charges Services can be easily added when need arises Not restricted to highways; schools, housing associations, green spaces etc

15. Design, IPR, Searching for Defects Main Body LoHAC 15 London Authorities Specific Requirements (Z Clauses) LoHAC Specific Clauses & Amendments Environmental, H&S, SME, FORS, Apprentices Governance Performance Collaborative working etc,

16. Contract Award Four geographic framework areas: North West, North East, Central & South One contractor per framework area appointed 8 Years in length Open book £2.6b Migration to Target cost

17. Contractor Consultants Suppliers Sub- Contractors LoHAC F/Work Boroughs TfL Call Off Contracts Customers Governance 17 Area Boards LoHAC Strategic Board Partnering Manager

18. Based around 7 Themes. Performance Management Safe Public & Workforce Satisfied Customers Effective Delivery Responsible Procurement Preventative Maintenance Reduced Disruption Contractor Performance Requirements fulfilled 18

19. Contract Reduction Mechanism The Contractor’s performance is assessed against the contractual performance indicators. If the Contractor achieves the required performance then: – the Framework Term is not reduced. If the Contractor does not achieves these requirements then: – The Framework Term is reduced by 6 calendar months; If in the following year the contractor achieves the required performance then the 6 months is won back.

20. Support authorities outcomes A cost effective highways maintenance and management service Smoothing traffic flows through joint forward planning and improved collaboration on works Better and more consistent customer experience Local jobs and local economic investment Reliable roads & safer cycling Improvement in the environment No loss of sovereignty

21. Support suppliers outcomes Long term contract commitment – invest for the future Remove uncertainty over contract term Recognise the need to make a profit Client consistency on PQQ / ITT Reduce tendering costs Not to be the first point of blame Put risk where it is best managed

22. Opportunities enabled by LoHAC Up to 250 apprenticeships across London (1 FTE or equivalent per £3m of spend) - 50% must be Priority – Worklessness Job Start & Adult Apprenticeships Euro V/VI compliant and cycle proximity indicator fleet & approved driver training Encouraged use of local SME & BAME supply chain along with annual reporting of achievements Collaborative procurement realising best value (e.g. LED low energy lighting, salt etc.) London Living Wage to all employees Considerate Contractor Scheme

23. Opportunities enabled by LoHAC Shared technical expertise (e.g. lighting, structures, drainage, contract administration, Traffic Orders, event management) Reduced traffic delays (e.g. rapid construction techniques, new technology for utility works) Rationalisation of highway management systems to provide better customer response, reduced support costs and simpler data exchange Better understanding and response to our customers’ satisfaction

24. Culture to deliver Culture to Deliver project established to address the risk that organisations may not be suitably prepared to work collaboratively together. HMEP expressed support for the Culture to Deliver project, including the production of this Toolkit Input from htma Facilitated by Atkins Management Consultants.

26. ‘ Culture’ refers to the behaviours, values, beliefs and mindsets of people connected with an organisation. The phrase ‘culture to deliver’ reflects the aspiration to create the right conditions for effective and efficient delivery of highway services. Culture to deliver

27. The Challenge Authority 1 Authority 2 Authority 3 Authority 4 Authority 5 Etc Authority 1 Authority 2 Authority 3 Authority 4 Authority 5 Etc Authority 1 Authority 2 Authority 3 Authority 4 Authority 5 Etc Authority 1 Authority 2 Authority 3 Authority 4 Authority 5 Etc Collaborative Working

28. Culture to Deliver Route Map Shared Vision Behaviours Roles and Expectations Communications and Engagement Capability and Skills Planning, Preparation and Readiness for change Early Enabling

29. All for one – one for all A failure in one area is a failure of all 5 Pan London Groups established – Network Reliability – CA – Collaborative working – CVU – Safety – EM – Efficiency – RJ – Customer Focus & Communications – TfL Each group has representatives from all four suppliers and clients.

30. All for one – one for all Share plant / materials Undertake joint working Share best practice Taking it in turn to host joint events LoHAC Contract Managers Meeting LoHAC Incident Managers Meeting E&SD & SLNT Managers Meeting – To share good practice and innovations – To have an opportunity for honest and open discussion across the four LoHAC areas

31. LoHAC Apprentice Forum Apprentice led Presentations skills Career aspirations Networking Mix with Graduates Address the skills gap in London Supported by senior managers & councillors

32. LoHAC Technical Forum Making the most of your Assets What have designers ever done for us? The talk presents current examples and discusses the lessons learnt and the benefits realized. Sticky ProblemsThis talk will examine the approach to whole life costing; consider investment opportunities such as PFI, and discuss how to deal with tar contamination on roads suffering from years of underfunding. Where there’s muck there’s brass Making the most of the materials we already have. Making the most of your assets! Trials undertaken by a London Borough to regenerate and extend the life of its natural stone paved footpaths and pedestrian areas.

33. Joint Quarterly Newsletter

34. Take Up (33 London boroughs) Nine London authorities participated in the original tender process. Of these: 6 formed contracts – 1 undertook their own parallel tender – 1 went with a 2 year contract extension – 1 undecided Since then (still early days): – 1 additional London borough has signed up – 4 have internal approval to join LoHAC – 3 going for authority to join

35. Future Increase borough participation Increase TfL use of LoHAC BS11000 Collaborative Business Relationships certification Even greater sharing of resources Working closer with utilities Greater co-ordination of on site activities New materials / new ways of working

36. Summary Teams that truly adopt a partnership approach unite to solve problems, making the best decision for all, not individual interests.

37. Further Information www.tfl.gov.uk/lohac www.tfl.gov.uk/lohac Steven Dennis Steven.dennis@tfl.gov.ukSteven.dennis@tfl.gov.uk 020 3054 1370 / 07921491469 37