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Project RECiPE: Communication Plan Parking Management and Associated Services Contract. A better way to do business…

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Presentation on theme: "Project RECiPE: Communication Plan Parking Management and Associated Services Contract. A better way to do business…"— Presentation transcript:

1 Project RECiPE: Communication Plan Parking Management and Associated Services Contract. A better way to do business…

2 BPA Parking Management and Associated Services Contract - a better way to do business… “We hope that within 3-5 years all business, organisations and local authorities using private contractors to manage parking and associated services will also use the BPA model contract. “By standardising contracts, we can help boost confidence in parking enforcement. By offering quality measurement, we hope that the private parking enforcement industry can be seen as part of the parking solution, not the problem. “Better training and the model contract should lay to rest the criticism that decriminalised parking is more about collecting revenue than controlling parking.” Patrick Troy, Chief Executive, BPA

3 Focuses on qualitative performance measurement, such as staff training and correct issue of tickets Discourages financial targeting of contractors, particularly based on ticket issue numbers and incentives or bonus schemes for staff which are also based on ticket numbers Encourages standard training to be undertaken by all enforcement contractors Emphasises parking enforcement for traffic management purposes, rather than for revenue raising Recommended in Guidance to the Traffic Management Act and by the House of Commons Select Committee

4 BPA Parking Management and Associated Services Contract - a better way to do business… BPA Contract STANDARDISES the delivery of parking servicesProvides Greater TRANSPARENCY Consequence Private Contractors are seen to be acting INDEPENDENTLY and in their own interest Private Companies ‘PROFIT’ from Parking Enforcement! SNAPSHOT Many Local Authorities have OUTSOURCED Parking Enforcement to Private Contractors Local Authorities ‘ABDICATES’ responsibility for Parking Enforcement

5 BPA Parking Management and Associated Services Contract - a better way to do business… BPA Contract Encourages like-for-like measurement of services Consequence Local authorities are left open to criticism and challenge through disparity SNAPSHOT There is no standard contract or shared set of rules

6 BPA Parking Management and Associated Services Contract - a better way to do business… BPA Contract Focuses on value and quality Consequence Local authorities are not seen as offering best value for public money SNAPSHOT Bespoke contracts are expensive

7 BPA Parking Management and Associated Services Contract - a better way to do business… BPA Contract Encourages innovation and continuous improvement throughout the contract’s lifespan Consequence New technology is often only introduced as part of a re-tender – this could mean a 5 year wait SNAPSHOT Bespoke contracts can be out of date before the end of their fixed term

8 BPA Parking Management and Associated Services Contract - a better way to do business… BPA Contract Reduces confusion by shifting focus from quantative to qualitative measures Consequence This is often interpreted as problems with the contract – including target setting by the local authority, and creates suspicion of wrongdoing SNAPSHOT Public/media criticism of parking enforcement services has grown

9 The Challenge: encourage best practice within the industry improve quality and standard of service of the parking enforcement sector improve staff retention, training and personnel support encourage like-for-like measurement of services

10 The Solution The BPA Model Contract is based on key principles: a partnering approach, founded on openness and trust a sharing of risk performance related payments linked to accurate measurement of performance through Key Performance Indicators incentives for service providers to seek out innovative ways of reducing target costs employing appropriately qualified CEOs who are motivated, well trained and suitably remunerated

11 allows the local authority to determine the scope of enforcement features core KPIs, which can be tailored by the local authority and worked into the contract as a phased approach to the service simplifies financial arrangements between a local authority and enforcement provider by fixing costs sets out clear guidelines for dispute management The Contract:

12 allows the local authority clear comparison between providers at tender stage and to measure performance following contract award on an agreed basis provides a clear comparison on quality issues – eg training and remuneration sets out an ‘open book’ agreement between local authority and service provider includes change management principles, to allow both local authority and provider flexibility to the benefit of service provision The Contract (continued):

13 Examples of Quantity Focused Core KPIs (Old Contracts) PCNs - numbers Clamps - numbers Removals - numbers Defaults

14 Examples of Quality Focused Core KPIs (Model Contract) effective parking enforcement good quality, motivated and informed CEOs issue of good quality PCNs level of compliance car pound operations clamping and removal operations abandoned vehicles full and timely reporting of all defective lines/signs police liaison administrative procedures

15 Remuneration CONTRACT SUM OVERHEADS PROFIT Subject to regular audit and assessment Subject to monthly measurement of Quality of Service through KPI s TARGET COSTS (Direct Costs)

16 Telecommunications 3 Pound-Utilities Only 2 Premises/Base 1 Cleaning 3 Fuels/Oils/Greases 2 Stationary and Documentation 1 Uniforms and Associated Equipment 4 General Office Equipment 3 Radio/Telecoms 2 IT Hand Held System 1 Vehicles – Trucks 5 Vehicles – Vans 6 Vehicles – Cars 7 Clamps 9 Vehicles – Two Wheelers 8 CCTV Operators 13 Suspension Staff Counter Staff Onboard Parking Attendants 10 Drivers Clamping Van 9 Drivers Removal Truck 8 Pound Admin/Counter Staff 7 Pound Manager 6 Admin. Staff inc. Quality and Monitoring 5 Parking Attendants – Basic 4 Parking Attendants - Senior 3 Supervisor 2 Contract Manager/Assistant CM 1 Labour and Staff Rates to coverall on- costs including but not limited to benefits, NI, travel costs, etc Equipment to include all costs of leasing repair, maintenance, consumables, replacements, etc Premises including all associated costs Materials Including delivery,distribution and removal as necessary Annual Target Cost Annual Rate Quantity DescriptionTypeItem ANNUAL TARGET COST CONTRACT SUM Maximum % Addition for Performance Related Payment% Cost Schedule

17 Key Performance Indicators Focus on the key service deliverables, which ensure that a good quality service is delivered. Reward good performance. Provide incentives for achieving and maintaining performance. Can be reviewed annually and revised if needed – making them flexible over the life of the contract.

18 Sample Key Performance Indicators Effective parking enforcement –Coverage of patrol requirements –Minimum number of deployed CEO’s –Rapid response unit Good quality, motivated and informed CEO’s –Initial training –Regular assessments of training –Standard of presentation –Complaints –Absenteeism and turnover of staff

19 Key Performance Indicators Issue of good quality PCNs –Cancellations due to CEO error –Void tickets Customer services and Penalty Charge Notice processing –IT systems –Customer services –Banking –Penalty Charge Notice processing

20 Key Performance Indicators Removals/Clamping –Abandoned vehicles –Nuisance vehicles –Refunds of removal fees –Speed of de-clamps Other areas –Cash collection –Machine maintenance –Car park management

21 Performance Related Payment Mechanism 4 Mont hs Maximum PRP Bits Minimum PRP PRP starts at +2 Bits until performance data is available. This line shows what happens if the Service Provider meets all targets as specified every Month. To maintain +6 Bits, the Service Provider must continue to meet KPI targets as specified, Otherwise the PRP goes down one Bit per month (down to Zero, then 2 Bits per month) 4 Months Maximum PRP Bits Minimum PRP In Month 4 et seq., the performance related payment goes up or down each Month, depending on whether performance targets are met in the previous Month. This line shows what happens if the Service Provider fails to meet targets. Bits as necessary deducted from PRP due to Service Provider. If the payment falls below zero, then Bits are doubled, that is, 2 Bits are added or deducted in any Month. Other management action instigated. The KPI target rises over the life of the contract The Service Provider must do more to maintain the PRP.

22 Using the Contract Annual Licence Fee –£500 for Members –£950 for Non Members Term –duration of contract between licensee and service provider

23 Using the Contract: Hackney London Borough RB Kensington and Chelsea RB Kingston upon Thames Brighton and Hove City Council Dept for Roads, Northern Ireland Epping District Council Worthing Borough Council Watford Council (incl. Three Rivers and Dacorum) Waltham Forest Council + others

24 Using the Contract: Hackney London Borough Council The emphasis of the new contract, which began in September, is on the quality of tickets issued, said Jessica Crowe, executive member for environment. Four months on, 'the number of complaints is going down'. Surveyor Magazine, January 2005

25 Using the Contract: “As a result of [the contract] a partnership has evolved where there is an honest and open approach to resolving problems and creating opportunities. It has also enabled both parties to develop and improve the way the contract is run, to increase efficiency, and provide a better service to the general public. “On-going training is actively encouraged and the use of key performance indicators ensures that standards are not only maintained but will improve over the years.” Corporation of London, operating a contract similar to the BPA Parking Management and Associated Services Contract

26 Obligations on Local Authorities Provide a clear definition of policies and aims. Embrace a partnership approach. Share information with the Service Provider.

27 Benefits summary: change of focus quality/customer driven flexible innovative continuous improvement positive marketing improve enforcement efficiency improving working environment

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