Presentation on theme: "Roads 2011 Where are we on Procurement"— Presentation transcript:
1Roads 2011 Where are we on Procurement Monday 21 November 2011, CBI Conference Centre
2Signed off Strategy Framework agreement – 4 Lots / Alliances Supplier must be able to provide the full range of services either in house or supply chainDirect call-off by clients within the Lot Area.Clients only have to take the service they wantNEC3 ContractWe want suppliers to work with us and each otherValue for money!
3Four Alliance Areas Total estimated value between £747m and £2.64b NE – LoHAC£26m paNW – LoHAC£35m paTotal estimated value between £747m and £2.64bC – LoHAC£56m paS – LoHAC£55m pa
4Alliance Development Team Joint TfL and LB Contract DevelopmentTeamTechnical Specification work streamWhat, When, Why & HowProcurement work streamComplianceCommercial Work StreamVFMBorough & TfL Liaison work streamMeeting London’s Need
5Technical Specification Review of 30 odd existing specificationsFirst Draft send to Boroughs & TfLTwo workshops held - 23 Authorities attended2nd Consultation period ended 4th NovFormal responses 14 received2 No Comments7 very detailed5 focused on specific areas
6Standard Detail Drawing 60 Standard Detail Drawing ProducedFive Boroughs volunteered to review themComments received back and are being taken on board
7ProcurementOJEU: 5/10/2011Industry day 24/10/11 – 22 suppliers attendedPQQ submission: 16/11/2011PQQ Evaluation process 17/11/2011 – 2/12/2011PQQ consensus meeting - 9/12/2011Prelim report to TLHM Board DecFinal recommendation to TLHM Board Mid Jan
8Procurement 2 Announce ITT shortlists end Jan Issue ITT early Feb Tender submission: 12 weeksAward of contracts: November 2012Contract commence: April 2013
9Framework Approach TfL is letting the Frameworks on TLHM behalf TLHM Board have reserved the right to award more than one Lot to a single contractor.Common governance and performance management.NEC Price List provision for Target Cost and Cost ReimbursableCommon schedule of rates – Area wideBase price - uplifts for road type / ToD / restrictionsIndividual Authorities Lump Sum pricesIndividual Authorities unique item / requirement prices
10Common Contract Reviewed existing contracts Input from htma, existing suppliers & authoritiesEversheds now appointed to support the projectDraft of Framework produced under review within TfL and by external Lawyers.Draft Call off Contract circulated to three volunteer Boroughs for reviewAllow use of client buying power via E Auctions
11Performance RegimeWorking very closely with the LoHAC Culture Change Working PartyContractual and Non Contractual KPIsContractual measure contract complianceNon Contractual measure client and supplier joint working and contribution towards client goalsContractual KPIs linked to Framework term lengthEight year Framework TermSupplier doesn't achieve them - term reducedSupplier does perform - lost time is awarded back
12Stakeholder Liaison All Boroughs asked to give: Any expression of interestIf interest for what services and from whenUnder what basis they wish to procure Lump Sum - SoRRegular meeting with Boroughs most likely to use the new contracts from 2013/14 – Tier 1.Regular forum established with Tier 1 Boroughs. - Open to othersPotential users provided with list of asset and contract information required for inclusion in ITT.
13National ComparisonHighways Maintenance Efficiencies Programme Survey - Over 80 authorities (approximately 55%).The most common form of maintenance contract was the NEC, with over two thirds of authorities using it in some form.A standard form of contract based on the NEC would be welcomed by Local Highway Authorities.95% of respondents supported the development of a standard specification.31% of respondents were already in some form of alliance, and 26% were looking into joining or forming such an arrangement.
14Benefits RealisationStandard Contract Documents - Staff time savings associated with maintaining bespoke documentation, average £80K* per authorityup to £3m based on those likely to go to the market nationally in the near future.overall savings of £12m to be realised if all Local Highway Authorities move to one standard form.Collaborative Alliances for medium sized authorities a figure £1.1m** pa per authority was identified.*TLHM Business case 72k ** TLHM Business case 10-15% savings
15Summary On Track Still a lot to do Not to late to join Borough input is vital and appreciatedMarket response has been very positiveLarge scale collaborate worksHighway Alliances Work