REGIONAL MANAGED FRAMEWORKS Workshop – 9 September 2010

Agenda 08:45 – 9:00Refreshments 09:00 – 9:15Welcome 09:15 – 10:00Framework Contracts, South East RIEP 10:00 – 10:30Frameworks Business Case 10:30 – 10.45Refreshments 10:45 – 11:15Next Steps 11:15 – 11:45Programme 11:45 – 12:00Questions 12:00Close

Welcome RIEP update Purpose of workshop –To keep you informed –IESE Regional Frameworks Advantages of Framework contracts Evidence of benefits achieved –Review of business case –Next steps –Procurement timescale

Regional Frameworks Improvement and Efficiency South East (IESE) - David Corcoran

Business Case Please separate into workstream groups

Business Case Validation of Data Comments and amendments Sense check from IESE

Surfacing Framework Earliest involvement in a framework Timing Status2011/ / / /15 Annual Spend £m Authority Northumberland Need to procure nowHRA only 3.5 Durham Existing contract 0.5 Newcastle Existing contract 3.1 Gateshead Annual contract 2.1 N Tyneside Existing contract 1.2 S Tyneside BT involvement 1.2 Sunderland Procuring 1.7 Stockton Existing contract 1 Redcar & Cleve Existing contract 0.5 Middlesbrough Tees V specialist material contract 0.5 Darlington 0.5 Hartlepool Surfacing Works Potential Framework

Professional Services Framework Earliest involvement in a framework Timing status / comments2011/ / / /15 Annual Spend £m Authority Northumberland Need to procure now 1.75 Durham 0.25 Newcastle 1.4 Gateshead 0.1 N Tyneside 0.5 S Tyneside Just procured 0.1 Sunderland Procuring now 1 Stockton 0.2 Middlesbrough 0 Redcar & Cleve All In House 0 Darlington Top up arrangement for tees valley started last week 0 Hartlepool Limited requirement Professional Services Potential Framework

Identified Efficiencies for Highways Frameworks Framework Total Savings over 4 yrs (£m) Total savings over 4 yrs (£m) Based on 25% of anticipated throughput and reduced efficiency savings Highways – Surfacing Highways – Consultancy Total

Comments and Amendments Figures have been amended to reflect anticipated effects of spending review Sensitivity check on business case still supports the establishment of Frameworks. Case studies with evidence of efficiencies have now been included in business case CWC have clarified queries raised by LA’s and IESE Updated business case to be circulated with papers from this meeting

Summary Recommendation to procure both Surfacing and professional services frameworks simultaneously For an initial investment will generate benefits of almost £4min over 4 years With a 75% reduction in throughput and anticipated efficiencies still generate a saving of almost £1m Also reinforcing regional collaboration – a Government requirement

Refreshments – 15 mins

Next Steps Prioritised Frameworks Governance - NEPO Procurement Programme

Highways Surfacing Tees Valley Surfacing Framework –19 Lots –Recognised contractors appointed to Framework Geographical –Tyne and Wear, Northumberland, Tees Valley, Durham Terms of Framework – mini competition / term maintenance Number of contractors – capacity / resource?

Consultancy Framework Sunderland – Ed Wallage / Brian Henderson Scope of Services –Lot 1 – Highway Engineering –Lot 2 – Transportation Geographical –Usual suspects likely to tender for all works –Benefits of sub regional Lots? –Need to encourage collaborative submissions Mini competitions / ranked consultants? Quality / price evaluation?

Other Considerations –Social clauses –Sustainable procurement –Design Quality –Key Performance Indicators –Approval processes

Governance Ian Taylor, Chief Officer for NEPO2 appointed, starts 4 October 2010 NEPO currently has an operational remit but moving towards a strategic framework for Regional Collaboration Greater commercial focus with flexibility to change and take advantage of opportunities Envisage Frameworks will be procured by NEPO, and act as central hub for construction management

Workstreams We need volunteers to support sub-groups that will –Participate in soft market testing –Advise the Project Board –Agree a procurement programme –Advise on the suitability of Contract Documentation, including T&Cs –Agree specification –Provide project assurance from a ‘practitioners’ point of view –Evaluation of submissions! Any volunteers?

Communication Plan Who do we need to communicate with, when and how? –Department for Transport –Highways Agency –In-house operations –Members –Suppliers, Contractors –Technical Advisors Group (TAG), NEPIN –Others Meetings Supplier events Soft Market Testing

The Next Steps Soft Market Testing – September 2010 Supplier Event – October 2010 Frameworks developed by Workstream Groups – September/October 2010 OJEU published – October 2010

Timetable Procurement Programme –Issue OJEU 4 October 2010 –Issue ITT6 December 2010 –Tenders returned31 January 2011 –CAM Programme board08 March 2011 –Contract Award18 April 2011 –Contract Start19 May 2011

Any Questions?