Copyright © 2018 by Baachu

Copyright © 2018 by Baachu


Next Gen CCS FM Framework – the one FM opportunity you cannot miss!

As the market prepares itself for the Crown Commercial

Services Next-Gen Facilities Management Services

framework, Baskar Sundaram, Founding Director of

Baachu, helps providers ascertain if the framework is

the way forward for them.

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If the answer to most of these questions is , then read on to

understand what the new framework entails and how to ensure that

you are well placed to be a part of the public sector FM supply

chain of the future.

Most of you may already have registered for the upcoming

‘Crown Commercial Services’ (CCS) framework for FM

procurement. Even if you haven’t, we will help you

understand the framework - what it holds for you, and the

industry at large.

If you haven’t already registered for updates and event

invitations relating to the CCS framework,

e-mail: [email protected]

https://ccs-agreements.cabinetoffice.gov.uk/node/6935

Lot 1a procurement is now complete and winners are

announced (in Appendix)

Before we delve deeper into the framework, it is vital that you ask yourself a few

questions to ascertain why you may want to explore this opportunity:

?Are you already on the existing CCS FM framework?

Are you a private FM provider looking to expand into the public sector?

Is the UK public sector an important market for you?

Are your existing public-sector clients looking to take the CCS route for

contract renewals in the future?

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https://ccs-agreements.cabinetoffice.gov.uk/node/6935


CCS - Background

In recent years, the UK Central Government has focused its

efforts on reshaping public procurement through creation of

Crown Commercial Services (CCS), centralised procurement

vehicle, among other policy changes. The sector is thus

witnessing a shift in procurement policies, guidelines

and practices.

As the existing CCS framework agreement ‘RM1056’ is due to

expire in 2019, CCS initiated groundwork early 2017 with their

supply engagement events to shape up its successor.

With the new framework, CCS is aiming to address key

concerns with the current framework, including - suppliers

not viewing the government as a customer of choice, buyers

concerned with inadequate competition and restrictions on

buying options, etc.

The upcoming CCS framework is expected to cover

c.60% of public sector contracts in the years to come. It

will be used by public sector bodies such as central

government departments, local authorities, schools, NHS, etc.

So, if your organisation’s focus is the public sector market, the

time is right for you to understand and prepare for this

opportunity.

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The Next-Gen CCS FM framework

The new FM framework (RM3830) will build on the performance and

successes delivered by RM1056, while addressing the diverse needs of

Central Government and Wider Public Sector.

UK government is introducing changes based on market feedback to

ensure the new procurement route is easy to use, encourages

collaboration, doesn’t restrict buying options for customers and creates

opportunity for greater localised procurement.

It is expected that the new FM framework (RM3830) will be in place

during 2018 and delivered in the following phases:

● Phase 1 - OJEU 1 (National/Localised Bundled FM) OJEU - Jan 18,

Award - July 18, Live - from August 18

Phase one will have a total of 160-180 suppliers across: lower tier

(100), middle tier (50) and upper tier (25)

Lot 1: FM Marketplace

○ Lot 1a: £0 - £7M; 75 - 100 suppliers

○ Lot 1b: £7 - £50M; 50 suppliers

○ Lot 1c: £50M+; 25 suppliers

Lot 2: Defence Specific (Phase 2 might include Defence)

○ 5 suppliers

○ 5 reserve

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● Phase Two - Defence FM, Housing Maintenance, Security : OJEU 2 - July 18,

Award - December 18, Live 2019

○ Integrated services (5 suppliers): £25m - £75m

○ Security services (10 suppliers): £0bn - £1bn

○ Linen and Laundry (10 suppliers): £40m - £50m

○ Catering services (20 suppliers): up to £250m

● Contract Duration: Up to 7 years, maximum 3 year extensions

● Weightages: 50%/50% quality/cost; +/- 30% at Customer discretion

● Locations: 63 regions - suppliers can select one or all regions; during tender

process, suppliers will be selected and placed into lots and must demonstrate

delivery capabilities in the given region

● Mandatory financial suitability assessment for all participants prior to

progression on to the Framework

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CCS Next Gen FM – What’s new?

Among a host of other improvisations, the framework

will feature a

Fit-for-purpose commercial model suitable

for large and small packages

Improved handling of TUPE data transfer

Revised service lot categorization direct

award for simple

Low value requirements (mandatory

services only) on tenders up to £1 Mn.

The framework will operate electronically – through a bespoke portal,

buyers will be presented with a number of mandatory stage-gates

designed to filter out non-compliant suppliers.

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Framework design and structure – key highlights

Scope of Services Pricing Methodology

● Comprehensive FM service offering for:

o Hard and Soft FM Requirements

o Security Requirements

o CAFM / Integrator Requirements

o Linen & Laundry Requirements

o Defence specific FM requirements where needed

● Mandatory (Core) and Non-Mandatory (non-core) services

● Anticipated pricing models are fixed price, target cost and Reimbursable (schedule of rates)

● Set Rates on a variable Unit of Measure basis will form basis for all pricing models, e.g. GIA, NIA, weight, time, per item etc.

● Rates will be rolled up, all-inclusive prices e.g. labour, materials, consumables etc.

● 1% CCS levy on all mini competitions which will need to be built in at pricing stage

KPIs & Performance TUPE

● Fewer, more meaningful KPIs related to service delivery

● 10 core KPI’s with additional level 2 KPIs

● Variable at risk element at customer discretion

● Three approaches, based on differing levels of liability transfer:

o TUPE Fixed Percentage tendered at framework (for direct award), based on a full risk transfer of all liability (up to a threshold) applied to the contract value at award

o TUPE risk premium based on actual TUPE data

o TUPE fixed premium based on an annual monetary value applied to the contract

The framework will also support government’s policy agenda for SMEs,

apprentices and growth, by expanding the evaluation criteria to include

social value and innovation considerations – for up to 5% of the overall

quality scores.

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CCS Framework – Call for

action to providers

As the new framework’s OJEU notice date closes in, it is crucial for FM

providers to decide their stance on the framework and chalk out necessary

next steps.

If you are an established provider with significant public sector presence,

keep in mind that increased government emphasis on central procurement will

drive buyers to make greater use of the framework in the coming years.

Further, the focus on SME and local provider inclusion will necessitate you to

look for the right partner organisations for bidding – incorporating social

value and innovation in your bidding proposition.

As the government targets an estimated £2 Bn of annual spend through the

new framework, established public FM providers risk losing out their market

share to competitors if they are not on the framework.

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Baachu Growth View

To enable FM providers to gain a bigger pie

of the FM market, we conducted market

sizing exercise and also researched the

opportunities in the industry.

Baachu team estimates sizeable upcoming

opportunities in the UK public sector FM

market over the next three years, with

upwards of 800 contracts worth over £9 Bn

in TCV will be outsourced by 2020.

Our market sizing exercise estimates over

80% of the FM market is outsourced.

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Baachu Growth View

How many these will be coming through CCS

framework?

We don’t know but we have built a comprehensive database of

upcoming Public and Private sector FM opportunities over the

next five years, across 13 public and 11 private sectors.

You can access to the 6500+ public sector opportunities at

www.baachurain.com

From our RAIN public-sector list, we know there are

● Around 2500 opportunities with estimated contract value between £0 - £7m (Lot 1a)

● Over 260 opportunities with estimated contract value between £7m - £50m (Lot 1b)

● Around 100 opportunities with estimated contract value above £50m (Lot 1c)

● Around 3600 opportunities with no contract values available

On the other hand, if a commoditised, low margin and competitive

public sector FM market is not your focus, either because you’ve

had a bad experience with the existing CCS framework, you can

explore over 2000 private sector outsourced FM projects at

www.baachurain.com.

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http://www.baachurain.com/


Concerns raised and discussed

regarding Lot 1 procurement

General :

The framework provides little scope for differentiation in the market and reduces FM, a complex service provision, to commodity pricing.

SME and Social Value:

Very few specialist SMEs will be able to demonstrate more than one mandatory Service and this will be a barrier for their participation to lot 1.

Pricing:

There are too many unknown variables to provide an accurate value for price per m2.

Building types and building GIA

Sample buildings provided later in the procurement lacked granular details

Legal Terms and Conditions

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Copyright © 2018 by Baachu 13

Lot 1a Lot 1b Lot 1c

● BAM FM Ltd.

● BELLROCK FACILITIES MANAGEMENT

● CBRE

● Compass Contract Services (UK) Ltd

● Crown Flooring Limited

● Emtec Facilities Services

● Engie FM

● FES

● GRAHAM ASSET MANAGEMENT

● Imtech Inviron

● Integral UK Limited

● ISS Mediclean Limited

● Keysource Ltd

● MC Construction Co. Ltd. (MC Facilities Services)

● Mitie Technical Facilities Management

● Mountjoy

● NG Bailey Facilities Services

● Pareto Facilities Management Ltd

● POWERTEST LIMITED

● Robertson Facilities Management Limited

● Rolfe Contracting Limited

● SCL MANAGED SERVICES LIMITED

● Servest Arthur McKay

● SES (Engineering Services Ltd) -Wates Smartspace FM

● Smart Solutions (Recruitment ) Ltd

● Space Solutions (Scotland) Limited

● VINCI Construction UK Ltd

● Amey Community Ltd

● BAM FM Ltd

● BELLROCK FACILITIES MANAGEMENT

● Bouygues Energies & Services FM UK LTD

● CBRE

● Compass Contract Services (UK) Ltd

● Ecolog International

● EMCOR UK

● Emtec Facilities Services

● Engie FM

● Engie Services

● G4S Facilities Management Ltd

● GRAHAM ASSET MANAGEMENT

● Integral UK Limited

● Interserve (Facilities Management) Ltd

● ISS Facilities Services Ltd

● ISS Mediclean Limited

● KIER WORKPLACE SERVICES

● Mace Macro

● MEARS

● Mitie Facilities Services Ltd

● Mountjoy

● NG Bailey Facilities Services

● NOONAN

● OCS Group UK Ltd

● Pareto Facilities Management Ltd

● Robertson Facilities Management Limited

● Salisbury Workplace Services Ltd

● Serco Ltd

● Servest Arthur McKay

● Servest Group Ltd

● SES (Engineering Services Ltd) -Wates Smartspace FM

● Skanska Construction UK Limited

● Sodexo

● VINCI Construction UK Ltd

● Amey Community Ltd

● Bouygues Energies & Services FM UK LTD

● Ecolog International

● EMCOR UK

● Engie Services

● G4S Facilities Management Ltd

● Interserve (Facilities Management) Ltd

● ISS Facilities Services Ltd

● JOHN GRAHAM HOLDINGS

● KIER WORKPLACE SERVICES

● Mace Macro

● MEARS

● Mitie Facilities Services Ltd

● NOONAN

● OCS Group UK Ltd

● POWERTEST LIMITED

● Salisbury Workplace Services Ltd

● Serco Ltd

● Servest Group Ltd

● Skanska Construction UK Limited

● Sodexo

Lot 1 Winners


Baachu Lot 1 Comments

Lots Lot 1a Lot 1b Lot 1c

Contract value £0 - £7m £7m - £50m £50m+

Expected suppliers 75 – 100 50 25

Shortlisted suppliers 27 35 21

1. Suppliers can only be in two lots

Interesting to note few providers used two legal entities to be in all three lots

2. CCS marketed next generation framework to be more SME friendly expected 70% supplier to be SMEs

Less success as only 27 suppliers shortlisted for Lot1a, around 10 suppliers are SMEs

3. All suppliers (excl. Carilion) in RMS 1056 - previous FM framework managed to secure a place in new FM Marketplace (RM3830)

4. None of the BMAS (Building Materials and Associated Services) framework suppliers got shortlisted in the new FM framework

5. Lot1 Framework was expected to Go live in May but going live in August


Reach out to us at [email protected], and

we will be glad to support your specific

growth requirements, just as we assist

numerous local, national and international

business services companies.

You can find Baachu Facilities management market sizing report - https://bit.ly/2NqQtQH

mailto:[email protected]

https://bit.ly/2NqQtQH


At Baachu, we design and implement simple, sustainable and data driven outsourcing solutions every day.

Our vision is to be the world’s premier research driven, technology enabled outsourcing capability partner achieving sustainable results for our customers, building fulfilling careers for our people and earning a fair return on the value we deliver.

Our culture is based on five values – capability, creativity, credibility, connections and confidence. We call our values “multipliers” - the combination of 5Cs that enables us to grow and serve as a powerful integrated business. These values are the essence of how we behave, what we believe, what we expect, who we are, what we deliver, and what we exist for.

Why Baachu?Baachu’s solutions aim to integrate growth consulting, bespoke research, data analytics, subscription products, bid and capture support to enable our clients achieve their goals.

Contact:

Baskar S Sundaram

Director, Baachu

11th Floor, Sussex Innovation, No.1

Croydon, 12-16 Addiscombe Rd,

Croydon CR0 0XT

0771 819 3599

020 818 13602

[email protected]

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Copyright © 2018 by Baachu