The Future Defence Infrastructure Services Programme · DIO will continue to provide technical and commercial scrutiny of business cases and advise on VFM. DIO will have the ability

The Future Defence Infrastructure

Services Programme

FDIS Industry Supplier Briefing

Tidworth Garrison Theatre

Friday 11th May 2018

The Future Defence Infrastructure

Services Programme

Mr Jon Hewlett

FDIS Programme Manager

DIO Delivery Continuity Team

Some background on DIO

• DIO plays a vital role in supporting our Armed Forces by building, maintaining and

servicing what the men and women who serve our country need to live, work, train

and deploy on operations.

• We are part of the MOD and acts as its Delivery Agent responsible for:

• Advising on how its Customers’ infrastructure requirements can be met;

• Acting as the Infrastructure SME and Technical Authority, providing strategic

and tactical advice and assurance across the estate;

• Maintaining the Single Source of Authoritative Data (condition, utilisation,

cost, etc.) for the whole estate;

• Stewardship, safeguarding the integrity of the Defence estate and

infrastructure.

Our Vision

That DIO will become an expert estate services business, focused on delivering:

• A Better Estate – using asset information and professional skills to help our

customers make important infrastructure decisions.

• A Better Service – serving our armed forces customers every day in order to

make the 'lived experience' better and ensure safe management and delivery of

military infrastructure.

• A Better Business – becoming a centre of excellence for estate expertise,

information and advice in order to improve how we manage contracts and

empower our people.


DCT – Delivering Strategic Solutions

• Part of the of our Chief Operating Officer’s (Geoff Robson) Customer

Delivery team.

• Helen Taylor (Head DCT) is responsible for conducting strategic analysis and

review of DIO’s future contract requirements to develop recommended

delivery options.

• These recommendations are then converted into effective and efficient

enabling contracts for FM and other estate services.

• Portfolio of programmes and projects:

HestiaFuture

Overseas Procurement

Unarmed Guarding

UK Capital Projects

RLAP FDIS

Future Defence Infrastructure Services

Programme

• The FDIS Senior Responsible Owner (SRO) is the DIO Regional Delivery

Director, Richard McKinney.

• The Programme has considered how Facilities Management (FM) on the UK

Defence estate will be delivered once the current generation of contracts come

to an end.

• This included all Hard FM and Soft FM services required to maintain and

support operational outputs and capability.

• Existing contracts included ‘in scope’ are the four Next Generation Estate

Contract (NGEC) Regional Primes, the National Housing Prime, the National

Training Estate Prime, the US Visiting Forces Prime

and the seven HESTIA Regional contracts.

• FDIS covers all sites and establishments on the UK

Defence estate, except those with long-term

contracts already in place (e.g. Main Building PFI,

naval base contracts,etc).

• Hard and Soft FM services should be kept separate

• FDIS will be delivered in phases:

• Tranche 1 will replace the current Hard FM arrangements i.e. the NGEC contracts.

• Tranche 2 will consider the replacement of the Soft FM arrangements i.e. the Hestia contracts.

• The FDIS Programme will use the new Crown Commercial Services FM Marketplace as it ‘route to market’.

• There should be a staged implementation of the Regional FM contracts.

The Programme’s Recommended Approach

The FDIS Contracting Model

Hard FM SWHard FM Central

Hard FM SEHard FM Scot

& NI

AccommodationMaintenance

SW


Central


SE


Scot & NI

National Accommodation

Management

National Training Management and

FM services

AccommodationA National Accommodation Management

contract providing a common user experience and delivering customer,

occupancy and void management services.

Four regional Accommodation Maintenance contracts that ensure statutory and

mandatory compliance of SFA estate and undertake reactive and planned

maintenance and void preparation services.

Training EstateA National Training

Management contract providing a common user

experience for the allocation and use of the

training estate. Supporting Hard and Soft FM services

will be included in this contract where they

directly enable training estate availability and use.

Built EstateFour regional Hard FM contracts.

These contracts are being designed with greater flexibility in

mind to enable funding flows & support different capability requirements across TLBs.

The contracts will be designed with the flexibility to deliver non-

core services and works to the Accommodation and Training

estates.

FDIS Contract Model

Hard FM SWHard FM Central

Hard FM SEHard FM Scot

& NI

Housing Maintenance

SW

Housing Maintenance

Central

Housing Maintenance

SE

Housing Maintenance

Scot & NI

National Housing Management

National Training Management and

FM services

TBC

Crown Commercial Services FM Marketplace

Single procurement through CCS

Housing Maintenance Lot 2B in Phase 2 of FM Marketplace

Defence FM Lot 3 in Phase 2 of FM

Marketplace

Housing Management Lot 2A in Phase 2 of FM Marketplace

The FDIS ‘route to market’

• National Training Management contract in a subsequent lot.

• Managed through CCS framework procurement procedures.

• DIO will call-off contracts once suppliers have been awarded places

on the framework.

Key Programme Milestones

Summer 18 Initiation of Procurement – Phase 2 CCS OJEU

released

Winter 18 DIO call off contract tender initiated

Winter 19 Main Gate Business Case approval / contract award

Spring 20 Contract In Service Date – Region 1 Regional FM

contract, Regional Accommodation Maintenance and

National Accommodation Management contract.

The Regional Defence Estate

Mr Andy Honnor

Head – South East Region and PFIs

Challenges

Our Challenges

Regional Delivery

Regional Delivery Director

Richard McKinney

SE, PFI & Utilities - Andy Honnor

SW & Reserve Forces and Cadet

Associations - James Crosfield

Central - Jason Day

Scotland and NI - Moira Hassel

Key responsibilities

Delivered in partnership with our suppliers

• Regional Compliance – manage statutory compliance within the region.

• Regional Delivery – deliver projects, facilities management and disposals to meet

operational requirements and sustain defence capability.

• Customer Delivery – support the definition and delivery of customer TLB

programmes of work.

• Data stewardship – ensure estate information is accurate, maintained to the

required standards and kept up to date

Funding delegation to the Front Line Commands

What is changing What isn’t changing

The responsibility for infrastructure

requirement definition will transfer to

the TLBs.

DIO will continue to be the principal

infrastructure delivery agent for TLBs

on behalf of Defence

TLBs will have accountability to

prioritise and endorse maintain and

sustain activities.

DIO, subject to agreed thresholds and

business rules, will continue to

commission low value works orders.

DIO will no longer make investment

decisions but will support customer

TLBs to do so through effective

planning, provision of data and

information.

DIO will continue to provide technical

and commercial scrutiny of business

cases and advise on VFM.

DIO will have the ability to flex RDEL

funding across fixed, variable and

priority based funding costs with the

agreement of the respective TLBs.

DIO will continue to procure, manage

and assure estate delivery contracts

on behalf of Defence.

Note: FY1819 – transition year. Full delegation from April 19.

Organisational Roles and Responsibilities

Customer TLBs Delivery Agent (DIO in

collaboration with its suppliers)

Defines TLB infrastructure strategic

requirements to support delivery of Defence

capability:

• Manages Infrastructure impact on

Capability Risks;

• Develops and maintains a TLB

Infrastructure Management Plan and

Command Infrastructure Delivery Plans

(CIDP) with the Delivery Agent;

• Act as SRO and Head of Establishment;

• Approves Business Cases within

delegation;

• Authorise Delivery Agent expenditure;

• Holds Delivery Agents to account for

delivery against the agreed CIDPs;

• Accepts infrastructure products and

services.

Delivers services, including project delivery

and facilities management, to Performance,

Cost and Time standards:

• Awards and manages contracts with

suppliers;

• Advises Customers on Business Case

deliverability

• Develops and agrees CIDPs with all

Customers;

• Commits expenditure within delegation and

as authorised by Customer;

• Holds its Customers to account for delivery

of their commitments against the agreed

CIDPs;

• Supports Infrastructure Expert in the

assurance and stewardship roles.

The importance of Supplier

Relationship Management

Our Goals

• Transform DIO into a best practice infrastructure commissioning

organisation, driving performance through our suppliers.

• Establish customer-focused teams that are empowered to make decisions

and deliver what the customer needs.

How we will get there

• Regional teams that act as a single team with clear levels of ownership and

accountability.

• Effective contract management with robust performance measures to help

drive value for money and accountability.

• True partnership working with incentivisation, supply chain innovation and

continuous improvement.

• Good estate management to support customer decision making.

• A procurement plan that will ensure the right contracts are in place at the

right time.

The FDIS Regional FM Service

Mr Jon Hewlett



FDIS Programme benefits

Improved contract

management

Embed a collaborative approach to supplier

relationship management to deliver improved

outcomes.

Efficient estate management Enable choice by customer TLBs to make the

most efficient use of available funding.

Better decision-making Effective management of information to

support decisions on the future direction of

the Defence estate.

Flexibility to meet changing

customer requirements

Enable a more agile approach to deliver

changes to service requirements.

What will be different?

FDIS Programme benefits

Consistent levels of supplier

performance

Adopt appropriate contract performance

measures to incentivise service delivery.

Compliance with mandated

standards and policies

Enable suppliers to maintain Statutory

compliance across the estate.

Improved levels of customer

satisfaction

Provide customer TLBs with choice over the

level of service they will receive.

Transparent financial control Ensure the necessary financial data is

available to meet departmental funding

commitments.

What will be different?

Workplace Services RM6089

FM Marketplace Phase 2

Lot 3 Defence FM

Paul Tuohy - Senior Category Lead

Lynne Reah - DIO Commercial Lead


Introducing Crown Commercial Service (CCS)

• We’re one of the biggest public procurement organisations in Europe and an Executive

Agency of the Cabinet Office.

• We lead on developing and implementing the UK’s public sector procurement policy and

delivering government’s commercial policy priorities.

• We help organisations across the whole of the public sector find the right commercial

solutions for around £12 billion of spend each year.

Commercial

expertise

great value

deals

significant

savings

60% SME

suppliers

bulk

buying

power

We want to help our customers save £2 billion between 2016 and 2020


Outline objectives

• Build on the performance delivered by existing CCS workplace frameworks and Phase 1

• Collaboration to ensure a model which meets and leverages market capabilities

• Needs of Central Government (DIO) and Wider Public Sector Customers met:

• Fit for purpose commercial model (pricing, T&C’s) suitable for our Customers needs

• Support to Government's relevant policy agenda

• Improve data transparency to enable robust decision making and performance/contract

management.

Lot 3 Defence FMLot 2 Housing

Lot 2A

Housing

Management

Lot 2B

Housing

Maintenance -

National

FM Marketplace Programme – Revised Lot Structure


Workplace Services

Lot 1 Security

Lot 1A

Technical

Security

Lot 1B

Physical

Security

ITT ISSUE DATE - MID JULY 2018

Lot 2C

Housing

Maintenance -

Regional


Framework Procurement

CCS to procure Framework under the Open procedure

Tender Rules

● No rules of engagement between lots

● JV’s and Consortia Welcome

● Cost / Quality (inc Management) - weighting ratio under development

Financial Risk Assessment - Industry Recognised Risk Score (tbd) plus audited, non-

audited accounts & forecasts.

Tender Presentations

Presentations with Board / Senior Representatives mandatory as part of framework

evaluation process, assessed by joint CCS / Defence team.


Lot 3: Defence FM (strategy under development)

● National Hard FM (8 providers) for Defence only with Call Offs being

performed on a Regional basis.

Specification & Pricing all based on RM3830 models but with amendments to

meet Defence requirements.

Public Sector Contract to be used, with Defence specific amendments.

New Call Off process to support delivery of fit for purpose innovative solutions

- modelled on “Competition with negotiated procedure”.

FM Marketplace Pricing Principles (under development)

Defence FM

• Maintenance services priced and evaluated at framework where practicable

• Used as maximum rates at call off

• Rates specified by circa 15 different building types

• Delivery of services to specified units of measure, e.g. m2

• Rolled up all inclusive service rates – labour, grades, qualifications, consumables,

support, equipment etc.

• Other hard FM services to be priced at call off



Transparency

Transparency requirement cross framework based on Open Book principles including (but

not limited to):

• Management Overhead,

• Corporate Overhead,

• Profit percentages

• Detailed provision of Materials, Hours, Grades captured at Framework Call Off,

• Use of capped Rates in Call-Off e.g. for Additional Works Services


FM Marketplace - Key Terms and Conditionso

Form of Agreement - aligned to RM3830

Public Sector Contract (Bespoke)

FM & Defence Schedules

Key Terms

Insurance - to be determined

Performance Management – % at risk based on 7 key areas.

ISO Accreditations & Standards

Cyber Essentials Plus

9001 (QMS)

14001 (Environmental)

27001 (Security) & Cyber Security Plus

Working towards 44001 (Collaborative Working)

55001 (Asset Management)


FM Marketplace - TUPE Approach

Based upon RM3830 approach

TUPE risk premium based on actual TUPE data. (value is normalised based on the

number of transferring employees and reviewed and reduced annually based on staff

attrition)

True-up post Award based on actuals transferred and inaccuracies only

Cost of Change to be included in Year 1 only

Allowance for redundancy to be included if needed


FM Marketplace (Defence) - Call Off Principles

New “competition with Negotiation” Process as Defence requirements meet certain criteria

such as:

Needs require adaptation of readily available solutions

Require design or innovative proposals

Certain aspects will not be negotiated:

Core Terms and Conditions

Minimum Requirements

Award Criteria

Cost - Price / Quality / Management - weighting ratio to be determined,

Further details will be defined at Call Off


Next steps• PIN release to the market - 22 February 18 ✓

• Customer and Supplier Engagement

○ We are running customer and stakeholder engagement programme in parallel

○ We have issued supplier and customer questionnaires - 22 February 18 ✓

■ Now closed ✓

○ 1:1’s have been completed with suppliers interested in defence and housing lots ✓

○ Complete market and customer engagement programme Quarter 2 2018

• Review feedback, finalise sourcing design, build of documents - Early Quarter 2 2018

• Keep in Touch Supplier & Customer Webinars will be scheduled throughout the process

• Anticipated ITT release – July 2018

• Framework award – December 2018


@gov_procurement

Crown Commercial Service

[email protected]

www.gov.uk/ccs

0345 410 2222

Keeping in touch…..

SERVICE FAMILY

ACCOMMODATION

Head DIO Accommodation

Air Commodore Wendy Rothery

DIO Accommodation

Accommodation Mission Directive

DIO PurposeEnable Defence to live, work, train and deploy at home and

overseas

Accommodation MissionDeliver and assure a quality accommodation service that meets the needs

of Service personnel and Defence across the UK and Europe to support

Defence operational commitments

DIO Accommodation

Hd Accommodation

Strategic Support

Plans & Requirements

Estate Services

Europe

Occupancy Services

Substitute Accommodation

Plans & Requirements

Accommodation Policy

Performance & Assurance

Area Manager Germany

Area Manager European Support Group

Performance & Assurance

Regional Manager North

Regional Manager Central

Regional Manager Southwest

Regional Manager Southeast

Programme Development

Business Management

DIO Accommodation

What is Service Family Accommodation (SFA)?

• All Service personnel are entitled to either single or family

accommodation as part of their terms and conditions of service

• At present personnel who are married, in civil partnerships or

have primary responsibility for children are entitled to SFA

• Limited additional personnel are entitled to SFA by virtue of

appointment

DIO Accommodation

The Housing Estate

• DIO Accommodation is one of

the largest providers of housing

in the UK

• 49,722 UK SFA

• 85.9% of stock assessed as

Decent Homes+

DIO Accommodation

DIO Accommodation

The Housing Estate

• National Organisation

• Regional Delivery Model

• North: 8,068 properties

• Central: 12,643 properties

• Southwest: 14,436 properties

• Southeast: 14,575 properties

DIO Accommodation

Key Deliverables – Occupancy Services

• Applications & Allocations

• Move In & Move Out Appointments

• Occupancy Management

• Defence Accommodation Stores

DIO Accommodation

Key Deliverables – Estate Services

• Repairs & Maintenance

• Statutory & Mandatory Inspections

• Void Preparation & Management

• Grounds Maintenance

• SFA Upgrades

Key Deliverables – The Statistics

DIO Accommodation

FDIS Contracting Model

DIO Accommodation

National Accommodation

Management

A National Accommodation

Management contract providing a

common user experience and delivering

customer, occupancy and void

management services

Regional Accommodation

Maintenance

Four Regional Accommodation

Maintenance contracts that ensure

statutory and mandatory compliance of

SFA Estate and undertake reactive and

planned maintenance and void

preparation services

DIO Accommodation

Future DIO

• DIO Accommodation remains as a

discrete National delivery organisation

within the Customer Delivery Area of

DIO

• Funding for SFA remains with DIO

• DIO Accommodation will continue to

manage expenditure & receipts

• TLBs will be provided with details of

spend and progress against the

programme

DIO Accommodation

Future Service

ENABLERS

CUSTOMER SERVICE

Customer

Excellence

Well Defined

Requirement

Collaborative

Approach

Consistent &

Equitable

Provision of

Service Single Point

of Contact

Commercially

Taut Contract

Right First

Time

The FDIS Accommodation Service

Mr Jon Hewlett



Mrs Miggins National Regional

Contract interfaces

e.g. Mrs Miggins’ boiler is broken

Cpl Miggins National Regional

Contract interfaces

e.g. Corporal Miggins has an assignment order



Lot 2 Housing

Paul Tuohy - CCS Category Lead

Lynne Reah - DIO Commercial Lead


Introducing Crown Commercial Service (CCS)

• We’re one of the biggest public procurement organisations in Europe and an Executive

Agency of the Cabinet Office.

• We lead on developing and implementing the UK’s public sector procurement policy and

delivering government’s commercial policy priorities.

• We help organisations across the whole of the public sector find the right commercial

solutions for around £12 billion of spend each year.

Commercial

expertise

great value

deals

significant

savings

60% SME

suppliers

bulk

buying

power

We want to help our customers save £2 billion between 2016 and 2020

Lot 3 Defence FMLot 2 Housing

Lot 2A

Housing

Management

Lot 2B

Housing

Maintenance -

National

FM Marketplace Programme – Revised Lot Structure


Workplace Services

Lot 1 Security

Lot 1A

Technical

Security

Lot 1B

Physical

Security

ITT ISSUE DATE - MID JULY 2018

Lot 2C

Housing

Maintenance -

Regional


Framework Procurement

CCS to procure Framework under the Open procedure

Tender Rules

● No rules of engagement between lots

● JV’s and Consortia welcome

● Cost / Quality ( inc Management) – weighting ratio under development

Financial Risk Assessment - Industry recognised risk score (tbd) plus audited, non-audited

accounts & forecasts.

Tender Presentations - Presentations with Board / Senior Representatives mandatory as

part of framework evaluation process, assessed by joint CCS / Defence team


Lot 2: Housing (strategy under development)

● Lot 2a Housing Management (5 providers) providing:Housing management, Occupancy Management, Void management

Contact centre,

Customer services e.g. occupancy scaling / scope to cover Defence

One National Prime + system / tools & charities for say 6-12 Houses

Lot 2b Housing Maintenance - National (8 providers) providing:Facilities management - statutory & mandatory compliance

Maintenance services on residential properties and assets

Horticultural services (grounds maintenance)

Vacant / unoccupied property preparation


Lot 2b: Housing - Design Principles (under development)

Key customer is Defence, but will be available for wider public sector use

National coverage at Framework to support regional FDIS call off strategy

Specification collaboratively developed by CCS / DIO to bring into line with market norms

FM Marketplace Pricing Principles (under development)

Housing Management – under development

Housing Maintenance

• Maintenance services priced and evaluated at framework where practicable

• Used as maximum rates at call off

• Rates specified by Housing type

• Delivery of services to specified units of measure e.g. m2

• Rolled up all inclusive service rates – labour, grades, qualifications, consumables,

support, equipment etc.

• Other services to be priced at call off



Transparency

Transparency requirement cross framework based on Open Book principles including (but

not limited to):

• Management Overhead,

• Corporate Overhead,

• Profit percentages

• Detailed provision of Materials, Hours, Grades captured at Framework Call Off,

• Use of capped Rates in Call-Off i.e for Additional Works Services


FM Marketplace - Key Terms and Conditionso

Form of Agreement - aligned to RM3830

Public Sector Contract (Bespoke)

FM & Defence Schedules

Key Terms

Insurance - to be determined

Performance Management - % at risk based on 7 key areas

ISO Accreditations & Standards

Cyber Essentials Plus

9001 (QMS)

14001 (Environmental)

27001 (Security) & Cyber Security Plus

Working towards 44001 (Collaborative Working)

55001 (Asset Management)


FM Marketplace - TUPE Approach

Based upon RM3830 approach

TUPE risk premium based on actual TUPE data. (value is normalised based on the

number of transferring employees and reviewed and reduced annually based on staff

attrition)

True-up post Award based on actuals transferred and inaccuracies only

Cost of Change to be included in Year 1 only

Allowance for redundancy to be included if needed


FM Marketplace (Defence) - Call Off Principles

New “Competition with Negotiation” Process as Defence requirements meet certain criteria

such as:

Needs require adaptation of readily available solutions

Require design or innovative proposals

Certain aspects will not be negotiated:

Core Terms and Conditions

Minimum Requirements

Award Criteria

Cost - Price / Quality / Management - weighting ratio to be determined,

Further details defined at Call Off


Next steps• PIN release to the market - 22 February 18 ✓

• Customer and Supplier Engagement

○ We are running customer and stakeholder engagement programme in parallel

○ We have issued supplier and customer questionnaires - 22 February 18 ✓

■ Now closed ✓

○ 1:1’s have been completed with suppliers interested in defence and housing lots ✓

○ Complete market and customer engagement programme Quarter 2 2018

• Review feedback, finalise sourcing design, build of documents - Early Quarter 2 2018

• Keep in Touch Supplier & Customer Webinars will be scheduled throughout the process

• Anticipated ITT release – July 2018

• Framework award – December 2018


@gov_procurement

Crown Commercial Service

[email protected]

www.gov.uk/ccs

0345 410 2222

Keeping in touch…..

Documents

The Future Defence Infrastructure Services Programme · DIO will continue to provide technical and commercial scrutiny of business cases and advise on VFM. DIO will have the ability