Facilities Management Category Management Plan Synopsis Version 1.1 (March 2015)

2 Category Vision $20M in savings within 5 years Government assets, owned or leased, facilitate service delivery expectations for the community Key Service Capabilities Financial, commercial and risk management Understanding of asset management value chain Cost vs market driven response to procurement Experience with various procurement models, applications and outcomes Organisational design considering stakeholder motivators Strategic Framework Recognising that FM is a multi and intra disciplinary field which has significant cost and serviceability implications in the delivery of services: Identify, if required at all, the most appropriate asset ownership model Identify and define sub categories that cover the full spectrum of FM services while establishing clear boundaries for accountability, similarity and specialty across clusters, agencies and buyers Prioritise and develop sub categories based on productivity potential across Government Identifying public sector inputs and capability requirements when engaging with the private sector across the asset management value chain Facilitate operational services and asset maintenance procurement by understanding the total cost to Government and market maturity through the application of appropriate engagement models Monitor and report on application Adjust strategy accordingly Develop a funding model to rationalise spend and investment in asset ownership Commitments Value for money - efficiency and effectiveness Appropriate application and apportionment of risk Address duplication and resource inefficiencies Data consistency across agencies as appropriate Whole of Life Quality Assurance framework Prioritised application based on opportunity to demonstrate savings across Government

3 Category Scope Facilities Management Asset Ownership Indirect Services Specialist Services Direct Services Services common to all asset owners / managers Typically covered by a Whole of Government Contract Maintenance Services (mechanical, electrical, essential services, hydraulics, lift, etc.) Operational Services (security, cleaning, horticulture, waste, etc.) Level of expertise not typically found locally Services required by ALL Government service providers Would typically have their own CMP Electricity Gas Water ICT Property leasing Property recycling Services specific to a cluster or agency Such as Transport corridors (trains, bus, ferries & roads) Clinical Services (Health, prisons, FAC) Catering High Security (prisons) Property fit-out Common issues for asset owners / managers Criteria (and capability) required to assess options Non asset solutions Serviceability: - Life expectancy - Flexibility - Scalability - Recycle/exit strategy Own or lease assessment

4 Category Plan Sub-Categories : Specialist, Indirect & Direct FM Services and Asset Ownership Short Term Priorities Procurement Board work plan priorities Focus on indirect services & asset ownership streams Collate and analyse cost and spend data Procurement modelling cost benefit analysis Market engagement and maturity analysis Test preferred procurement model with agencies Alignment with external category management Submit model(s) for endorsement & implementation Monitor and record performance Key Challenges Ensuring data availability and integrity Communications across sector and with industry Internal alignment and broader cross -Government focus Capability and capacity Stakeholder motivators Five Year Objectives Divestment / recycling of non essential assets Robust data Engaged service providers Specialist & direct services sub category integration Drivers include: Knowledge management Process improvement and innovation Performance management and reporting Cutting red tape Access for regional suppliers, esp SMEs