1. Building Schools for the Future LEP and FM Managed Services Hertfordshire County Council 9 January 2008 Alan Wilkinson

2. Objectives for the workshop To provide a briefing on the purpose, structure and processes involved with Local Education Partnerships. To explain the concept of FM Managed Services and to consider the implications for schools in Stevenage To allow opportunity for questions and discussion

3. 4ps: who we are and what we do We are: A Local Government organisation Central body of the LGA We have: Local Government pedigree Independence We work with: Local Government Central Government and Private sector partners We Provide Support for: Procurement of partnerships and projects Project delivery and Skills Development We also: Act as a “critical friend” Undertake Gateway Reviews

4. How BSF is different? scale ambitionapproach all categories of secondary schools 11-16, 11-18, upper schools, mid. schools & secondary special schools 2005/06 £2.1bn 2006/07 £2.2bn 2007/08 £2.2bn not simply a building programme - Transformational from patch & mend to rebuild & renewal strategic approach to funding, design, & procurement of buildings ICT integration design quality key to programme new procurement approach SfC to demonstrate how an education vision becomes reality new national body – Partnerships for Schools (PfS) ensuring VFM management process

5. How BSF works LA sets out transformational, corporate & educational vision in SfC Translation into objectives for all schools Development of initial OBC for phase 1 scheme Procure PSP with supply chain LA determine scope/ role of Private Sector Partner (PSP) Formation of a Local Education Partnership LEP delivers phase 1 scheme LEP develops and delivers waves of investment in accordance with SfC

6. Determining the procurement approach Funding & Procurement Approach Types of funding  PFI credits  Capital grants  Capital receipts  Prudential borrowing  School contributions  Supported borrowing Types of schools  Community  Foundation  Voluntary aided  Academies  Trust schools Types of Procurement Contracts PFI Design & build Soft/hard FM ICT Procurement Structures Strategic partnering Framework agreement Local Education Partnership

7. HERTFORDSHIRE BSF Local Education Partnerships

8. What is the LEP? A public private partnership with 3 elements: A private sector partner (PSP) A local authority (LA) BSF Investments (after PfS) A ‘joint venture’ (JV) company A limited liability company: Issues share capital Usual constitution Shareholding = PSP 80% LA 10% BSFI 10%

9. What does the LEP do?  “Local delivery vehicle for optimal deployment of strategic capital investment”  Exclusive right to develop proposals for and deliver BSF schools  Integrates ICT with design and build for optimal education outcomes  Undertakes maintenance and other premises services to some or all schools  Other work at LA discretion (if included in original OJEU notice)  Single point of contact for procurement and delivery

10. Local Authority BSF Strategy for Change Local Stakeholders (Schools, PCT,LSC) Strategic Partnering Agreement Local Education Partnership Supply Chain BSFI (after PfS) (c10%) Local Authority (c10%) Private Sector Partner (c80%) Shareholders Agreement Strategic Partnering Board LEP contractual arrangements

11. Scope of the LEP Education Leisure and Libraries Regeneration/ Social Housing Construction PFI/D&BNew Facilities Facilities Management PFI FM Secondary FM Primaries FM Leisure Management All FM Property Services Business Cases Project Management Asbestos Surveys New Business Project Management Asbestos Surveys New Business Project Management Service Support LEA Finance Teacher Training Finance Training Delivery of Policy Construction Partner Property Partner Strategic Partner Education Partner

12. 10 years exclusivity for new project development Possible extension for a further 5 years Continues in existence for duration of PFI contracts How long is the LEP set up for?

13. Stated advantages of the LEP approach Speed of procurement and familiarity One stop shop Subsequent projects Market appetite Supply chain management Consistency of service Project development Frees up in house resources Value for money Ability to respond to LA’s Strategy

14. Possible disadvantages of the LEP Additional complexity Costs of set up and management structure Equity costs to LA Strength of PSP in the structure Ensuring long term value for money Limited stakeholder influence Use of existing contracts New model for schools

15. HERTFORDSHIRE BSF FM MANAGED SERVICES

16. Possible Scope of FM Managed Services? Caretaking and cleaning Day to day maintenance Life cycle maintenance ICT Catering Grounds maintenance Security Others

17. Delivery of FM Services Provided by the LEP Common standards across all BSF schools. Contract period Transfer of staff Training

18. Management of FM Services Specialist FM Provider Robust Client team at HCC Output specifications Use of help desk

19. Standards of Performance Monitoring regime Regular reports and meetings School involvement Payment mechanism Payment deductions for poor standards or unavailability

20. Value for money  Benchmarking of costs  Periodic market testing  Continuous improvement  Performance indicators  Involvement of PfS

21. Questions and Discussion www.4ps.gov.uk