Maintenance Review 2004

1. Maintenance Review 2004 A review of the procurement of repair and maintenance works for Hertfordshire County Council.

2. Building Repairs and Maintenance • Responsive Works • Planned Works • Cyclical Works

3. The Review Objectives In view of the expiry of the current MTC’s in September 2005, the review was commissioned to: • Conduct a strategic options appraisal for the procurement & delivery of maintenance works from 1 October 2005; • Canvass the opinion and experience of stakeholders in order to identify the most suitable option; • Identify areas of best practice in Local Authority and commercial sectors and to incorporate these into the strategic review; and • To consider expansion of the maintenance contracts into works carried out directly for schools under devolved funding.

4. Stakeholders Contractor Competition MTC Contractors Herts Property MP Staff MTC Service Departments End Users Other MP Offices/ Contracts Other LA’s & Commercial Sector MP Management Consultancy Knowledge Sources

5. Options The following five options were identified during the review: • Pre-MTC Procurement of Works • Continuation of Current • Framework Arrangements without detailed pricing basis • Single Partner MTC • Mixed Model (Recommended)

6. Options • Pre-MTC Procurement of Works • Reactive works carried out on an informal basis. • Cyclical works on a variety of contracts. • Planned works tendered to standard JCT form of contract.

7. Options • Pre-MTC Procurement of Works • Continuation of Current Measured Term Contract • Measured Term Contracts for the provision of reactive, cyclical and planned repairs and maintenance works. • Proven reactive 24/7 maintenance arrangements. • Utilization of bespoke web based works ordering tool. • Appropriate (and improving) quality.

8. Options • Pre-MTC Procurement of Works • Continuation of Current • Framework Arrangements • Multiple independent framework arrangements. • A variety of Contractors. • No detailed cost basis.

9. Options • Pre-MTC Procurement of Works • Continuation of Current • Framework Arrangements • Single Partner MTC • A single contractor for all maintenance works.

10. Options • Pre-MTC Procurement of Works • Continuation of Current • Framework Arrangements • Single Partner MTC • Mixed Model (Recommended) • Combines the advantages of MTC’s for reactive and cyclical works with the advantages of framework arrangements for planned works.

11. Recommendation A recommendation based on the mixed model is made as follows: One Reactive and Cyclical M&E Contract One Reactive and Cyclical Building Contract Planned Maintenance Contractor A Planned Maintenance Contractor B Planned Maintenance Contractor C Roofing Framework Heating Framework

12. Recommendation A recommendation based on the mixed model is made as follows: • A reactive and cyclical building works contract • A Measured Term Contract. • Based on the National Schedule of rates. • For all works across the County. One Reactive and Cyclical M&E Contract One Reactive and Cyclical Bldg Contract Planned Maintenance Roofing Framework Heating Framework

13. Recommendation A recommendation based on the mixed model is made as follows: • A reactive and cyclical building works contract • A reactive and cyclical Mechanical and Electrical Services contract. • This will be delivered on the same basis as the building works contract. One Reactive and Cyclical M&E Contract One Reactive and Cyclical Bldg Contract Planned Maintenance Roofing Framework Heating Framework

14. Recommendation A recommendation based on the mixed model is made as follows: • A reactive and cyclical building works contract • A reactive and cyclical Mechanical and Electrical Services contract. • A specialist framework arrangement for roofing works. One Reactive and Cyclical M&E Contract • Reduced costs through direct management of the supply chain. One Reactive and Cyclical Bldg Contract Planned Maintenance Roofing Framework Heating Framework

15. Recommendation A recommendation based on the mixed model is made as follows: • A reactive and cyclical building works contract • A reactive and cyclical Mechanical and Electrical Services contract. • A specialist framework arrangement for roofing works. • A specialist framework for boiler replacement and associated heating works. • Reduced costs through direct management of the supply chain. One Reactive and Cyclical M&E Contract One Reactive and Cyclical Bldg Contract Planned Maintenance Roofing Framework Heating Framework

16. Recommendation A recommendation based on the mixed model is made as follows: • A reactive and cyclical building works contract • A reactive and cyclical Mechanical and Electrical Services contract. • A specialist framework arrangement for roofing works. • A specialist framework arrangement for boiler replacement and associated heating works. • Three overlapping framework arrangements for all other planned building works. • These framework arrangements will include facilities for procuring roofing and heating works in order to ensure that choice is retained.

17. Innovative Improvements • A random market test of 10% of planned works to use in evaluating best value and benchmarking to the market. • Use of Key Performance Indicators to award increased work. • Involvement of the Supply Chain during tender process to promote partnerships with local contractors.

18. Recommendation This recommendation builds on the successes of the current Measured Term Contracts and introduces: • An element of benchmarking for planned works. • Work allocation based on performance. • Benefits to end users of continuous improvement. • Flexibility, innovation and partnership • An efficient pricing mechanism. • End user choice The perceptions of end users, best practice in the wider market and lessons from the past are all incorporated into this proposal.

19. Questions

20. Recommendation • A four year termis recommended Nov 2009 Nov 2004 Mar 2008 Nov 2005 It is proposed that break clauses are inserted in the contracts to accommodate any future shift in strategic procurement policy by Hertfordshire County Council.