CIH 28 June 2017 Procurement Made Simple Introduction Procurement Hub Procurement Hub Green Services Hub OJEU compliant framework Fortem Who are we what do we do Procurement Hub clients ID: 688225
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Slide1
Welcome
Procurement Made Simple
CIH 28 June 2017Slide2
Procurement Made SimpleSlide3
Introduction
Procurement Hub
Procurement Hub/ Green Services Hub
OJEU compliant frameworkFortem – Who are we, what do we doProcurement Hub clientsProducts delivered to dateCase StudiesHow to join and make “Procurement Simple”
ContentsSlide4
Introductions
Mark Pheasey
Fortem
Neil JonesProcurement HubDebra Green
Procurement HubSlide5
Who are Procurement Hub?
Not for dividend organisation
Full time CIPS trained Procurement Professionals and Support staff
Expertise in key spend areas such as construction, repairs and maintenance, building materials, energy, green services, professional services, legal services, office related goods and services.Extensive experience of EU Procurement Legislation, Corporate Social Responsibility in the Supply Chain, Value Engineering and leading strategic change through procurement. Procurement Hub has been established as a business on the success of the original GSH and has created spend under management in excess of £100 million since 2013 Slide6Slide7
Why procure Green Services?
Rent reduction of 1% since 2016, lead to Places for People and other Registered Providers looking to reduce costs as the same time as an obligation to reduce fuel poverty in housing stocks
A series of funding streams particularly in Scotland and Wales are making energy efficiency schemes more viable
The failure of ECO and Green Deal has left the UK market in a state of flux with regards Green Energy and Government targets, but the market is still growing organically
With the end of Decent Homes, the construction sector with regards social housing maintenance is focused on green services for projects. Procurement Hub therefore needs an OJEU compliant offering to cater this market Slide8
Green Services V1
Current framework established in May 2013 and is used by the Group and extensively used by external organisations.
Majority of the spend is through the construction lot and work delivered by
Willmott
Dixon/
Fortem
Scope – current scope is across three streams
Green Energy Construction delivered through
Willmott
Dixon/
Fortem
Energy Consultancy Services/Strategic Alliancing Funding
Legal Energy Services delivered through Bevan Brittan
Current annual spend £10m+ including an average of £2-3m PFP Slide9
Current framework has no regional spilt and uses suppliers with a national reach
Current scope of the framework doesn’t reflect the shape of the Green Energy market today and so there is a desire to refresh with new technologies/methods of construction
Contracts expired in June 2017.Volume and appetite for it being re-procured Slide10
Strategic
Options Green Services V2
On the basis on the internal and external
analysis, there
are
four
Viable options
for
the Green Services Hub Procurement Strategy
:
Option 1
Tender a new framework which duplicates current format
Option 2
Use an existing consortia framework
Option 3
Tender a new multi supplier framework / DPS
Option 4
Tender a new single supplier framework
Pros
:
Very little time required to prepare tender documents
Cons:
Provides no additional flexibility
Provides no additional leverage against supply chain
Provides strategic opportunities to Group
Doesn’t reflect the learnings of framework
Ignores elements of framework not widely used
Still leaves multiple suppliers to manage
Pros:
No time required to prepare full tender documents
Cons:
Limited ability to prescribe internal requirements to supply chain
Consortia in direct competition to Hub
Have to use consortia appointed suppliers only
Reliance on consortia procurement processes, and commercial acumen.
Provides no opportunity to commoditise requirements as HUB solution
Pros:
Provides greater flexibility
Can incorporate wider strategic options
Can provide multi supplier platform for all group requirements
Allows increased leverage with supply chain.
Presents potential income opportunities to GroupCan be commoditised as a HUB solution for wider public sector.
Cons:Increased procurement complexity & risk.Ignores elements of framework not widely used
Pros:
Provides greater flexibility
Can incorporate wider strategic options
Can
provide single platform for all group
requirements
Allows
increased leverage with supply chain.
Presents potential income opportunities to Group
Can be commoditised as a HUB solution for wider public sector
.
Single provider allows a more aggressive and supplier led sales route
Cons:
Increased procurement complexity & risk.Slide11
Business Need
and
Functional
Requirements
Procurement
Requirements
3 National Agreements for GSH operating
in
Framework
for use by Places for People
Group and local authorities across the UK
Annual Spend circa £10m per annum
Where we are…
A refreshed national framework with 1 provider on a construction lot only but with a wider scope of products and services
Framework
for use by Places for People Group, and any other Procurement Hub members.
Where we want to beSlide12
Installer Framework
Green Services V2
The framework will have
8
main product
areas for the supply and installation of services by one sole supplier, either by direct delivery or through subcontract.
Solar PV
Biomass
Airsource Heat Pumps
Heating and Renewable Measures
District Heating
External Cladding
Building Energy Certificates
Insulation Material
As well as the above more traditional lots a scoping exercise needs to be completed to determine how to “futureproof” the framework to capture new technologiesSlide13
Its not just about Price
Section
Weighting
Price
40%
Health
and Safety
10%
Environmental
and Sustainability
10%
Qualitative
40%
Total
100%Slide14
Who are
Fortem
?
Solutions provider, not just a contractorProvide a full range of maintenance
services for
social housing
partners
I
ndustry-leading Energy
Services expertise, specialising
in making
homes more energy efficient
& cheaper & easier
to heat
Fortem’s
market also
includes public buildings, blue
light services and education.Slide15
What do
Fortem
do?
Property solutions provider working in over 165,000 homes and propertiesDelivering
services to over 500,000 residents and service users.
24 Hour Service Centre
In
2016: 400,000 repairs, 10,000
voids, 25,000 planned
installations, 6,000 energy
efficiency retrofits
& 60,000
gas
services.Slide16
What do
Fortem
do?
EWI, IWI, Whole House, structural, roofline, heating, environment, renewables.5000 properties in North Wales
3000 properties in Hull
3250 properties in Bristol
Leeds City Region – Social, PRS and private stock (Tenure blind)
Greater Manchester Combined Authority - Privates
Hull – Area RegenerationSlide17
What do
Fortem
do?
Tower BlocksStructural WorksCladding/ Render
Sprinklers
Fire Detection
Winter Gardens
Windows
Ventilation
Replacement heating
Lifts- refurbish/ renew
E
xtensions, change of use, etc.
Oxford Tower Block refurbishment schemeSlide18
Clients - A selection who have used the Hub
Places for People
London
Borough of HaveringGolden Gates HA/ TorusLeeds Federated Housing Association
Denbighshire County Council
London Borough of Islington
Ceredigion Council
Gwynedd Council
Derwent
LivingSlide19
Services - A selection of products via the Hub
External Wall Insulation
Internal Wall Insulation
Whole House RetrofitRoom in RoofHeating worksVoid works
Estate Regeneration
District Heating
Solar Power (PV installations)
SAP/ EPC reduction schemesSlide20
Case
StudiesSlide21
London Borough of
Havering
EWI installed to over 450 non-traditional properties of various types.
Works included: removal of existing defective EWI, application of new EWI, new windows and doors Collaborative relationship with LB and our system
designer formed to
agree
most suitable
solution
and system design
Social Value
- Worked with local colleges to help tackle high youth unemployment
EWI works to non-traditional homesSlide22
Golden Gates (Torus)
Works included new roofing, external works, solar PV, battery storage and landscaping to 7 low rise blocks of flats
Most Innovative Refurbishment / Regeneration Project – Housing Innovation awards 2015
5 Residents trained as Energy ChampionsSocial Value – collaborated with local college to provide work experience
Alder Green, WarringtonSlide23
Denbighshire County Council
Worked with Council in some
of the most deprived
areas of Denbigh
Works included EWI to 108 properties - Mix of private and social homes
High levels of resident liaison to enable complete estate regeneration, with minimum disruption
Framework enabled works to be completed on time in a short timeframe due to funding spend
EWI works in DenbighSlide24
LB of Islington
More
than
2,000 solar panels were installed to 3
council owned
buildings saving
190 tonnes of CO2 per
year
Framework enabled works to be completed in time for council to claim higher Feed in Tariff
We designed
the
schemes and
produced a full
technical specification with transparent pricing
for Islington within a
5 week
period.
PV panels with view of the City Slide25
Ceredigion Council
Works included: EWI, loft insulation, draught proofing, boiler
upgrades, central heating controls and associated enabling works.
108 residential properties - 36private properties and 72 social houses.Social Value - Donated £15,000 in kind to the community centreEmployed
120
Welsh based
operatives as part
of our
commitment to
hiring a local labour force, upskilled the local DLO
Exemplar scheme for Welsh Government
Llandysul
, Ceredigion Slide26
Places for People
Variety of schemes across the country to improve the energy efficiency of
PfP’s
stockWe work with
PfP’s
A
sset management teams to develop a scheme, within budget and agreed timescales
Works mainly included the replacement of old, inefficient heating systems
Benwell
Grange, Newcastle Slide27
Next Steps
Become a member of the Procurement Hub if you aren’t already
Develop requirements together with
Fortem & Procurement HubSign call-off agreement and implement your solution Slide28
Questions