FRANKSTON HOSPITAL REDEVLOPMENT PPP

Industry Capability Network (ICN) Briefing Presentation AGENDA

1. Introduction 2. Frankston Hospital Redevelopment Project Overview 3. Government Policy 4. Victorian Social Procurement 5. Maintenance 6. ICN Overview and ICN Gateway Registration of Interest Process 7. Panel Q&A 8. One On One Networking Speakers

• Andrew Bradley – Industry Capability Network (ICN) • Sarah Neaves – Capella Capital • Dim Jancev – Lendlease Building • Jacqui Saultry – Lendlease Building • Brian Finnigan – ICN Social Procurement • Chris Mansfield – Honeywell • Bren Gray – Compass Group Introduction Sarah Neaves General Counsel - Capella Capital Exemplar Health Consortium

Project Co

Soft FM Hard FM Developer & Project Manager Design and Construction Facilities Maintenance Key D&C Consultants

Landscaping and Urban Design Architecture and Interiors

Structural/Civil, Acoustics, ESD, Façade, Mechanical, Electrical, Health Planners Technology/Security ICT, Fire & Hydraulics Fire Engineering Introduction

Frankston Hospital Redevelopment Project • Frankston’s largest ever project • Enormous opportunity for local industry and workforce: • Over 1,000 direct jobs plus [2,000]+ indirect jobs • $605m estimated to be spent across construction phase plus additional maintenance spending over a 25 year operating term • Strong focus on building local industry workforce

Why are we here? • Meet the Exemplar Health team • Provide overview of Frankston Hospital Redevelopment Project • Learn how you can get involved

8 Capella Capital – Developer and Project Manager

• Australia’s leading project developer • Over $20bn in major infrastructure projects across Australia in the last six years • Over 75 industry awards in the last decade • Projects in transport, health, education and renewables • Investor and long term project manager for the project

Bendigo Hospital, Melbourne Metro Tunnel, Melbourne Sunshine Coast University Hospital

9 Dim Jancev Senior Construction Manager – Lendlease Building Lendlease – Design and Construction

• Lendlease Building are the leading Hospital builder in Victoria having successfully delivered; • Bendigo Hospital; • Joan Kirner Women’s & Children’s Hospital (Sunshine); • Shepparton Hospital Redevelopment; • Monash Children’s Hospital; • Box Hill Hospital; and • Royal Children’s Hospital over the last 10 years. • Dedicated Strategic Health Business Unit with dedicated health specialists. • Significant interstate experience having delivered the most recent Greenfield Tertiary Hospitals in Queensland – Sunshine Coast University Hospital & Gold Coast University Hospital. • Delivering the Tweed Valley Hospital, Prince of Wales Hospital at Randwick in NSW

11 Lendlease – Team Experience

Project Project Project Description Relevance Location Value

Royal Children’s • Design, build, finance and maintain • Recent Victorian PPP • Completed 2012 • Successful health VIC c. $1.1bn+ Hospital • consortium: B&B, Lendlease and Spotless project

• Project to design, build, finance and maintain a hospital in Bendigo, Victoria Bendigo Hospital • Largest regional hospital development in Victoria’s history VIC $630m • Recent Victorian PPP • Completed 2018 • Seen as successful • Consortium – Capella Capital, Lendlease and project • Spotless

• Project to design, build, finance and maintain a public teaching Sunshine Coast hospital at Kawana on Queensland’s Sunshine Coast QLD $1.8bn University Hospital • Construction commenced in November 2012 • with Stage 1 completed early 2017 • Large scale PPP • Consortium – Capella Capital, Lendlease and Spotless

12 Lendlease – Team Experience cont.

Project Project Project Description Relevance Location Value

• Lendlease worked in partnership with Queensland Health as the Stage One Managing Contractor. It is comprised of seven main buildings • Large scale Gold Coast including Clinical Services Building and In-patient Units Pathology and health project QLD $1.76bn University Hospital Central energy plant with a total floor space of around 170,000sqm excluding car parks and on-site car parking for up to 3,000 vehicles.

• The new hospital works include: new Emergency Department (ED), additional adult beds, a new intensive care unit, new helipad, new Randwick Campus operating theatres and capacity for health related educational and • Introducing new Redevelopment Acute research opportunities. NSW $350m models of care Services Building • The works will also incorporate in the new models of care, a Virtual Command Centre and Medical assessment Unit to relive pressure off the ED

• This project is being delivered on a ‘live” campus and thus includes complex staging and phasing requirements. • Complex works • The development includes: new psychiatric emergency care centre, new Gosford Hospital on a live inpatients wards, a new paediatric treatment unit, new cardiovascular NSW $251m Redevelopment campus service, more medical imaging services including a nuclear medicine department, more outpatient services including a new rehabilitation unit.

• Creation of a facility for the provision of safe, high quality health services for women and children in a contemporary setting that promotes both Joan Kirner Women’s healing and wellbeing. • Creating a and Children’s • The JKWCH is a multi-level facility with 20 maternity delivery rooms, 173 purpose built VIC $209m facility Hospital beds including 64 obstetrics beds, 32 paediatrics beds and 39 special care nursery cots, four theatres and additional clinics Frankston Hospital Redevelopment Project Overview Project Overview

• PPP to design, construct, finance, and provision of facilities management services for 478 points of care (including 443 beds – replace and additional). • Scope Overview • Capacity for at least 288 IPU beds (replaced and additional) • Additional operating theatres • 13 relocated and enhanced emergency department places • Expanded women’s and children’s health services, including maternity, women’s and paediatric services • Improved oncology facilities • The relocation and enhancement of mental health services to the facility, with associated outdoor secure areas • New central sterile supply department (CSSD) • Redevelopment of medical imaging • Shell for future expansion of clinical workspace and IPUs Frankston Hospital Redevelopment – Artists Impression (VHBA, 2020) • Demolition of buildings H (existing mental health building) and S (tennis club pavilion) • Carparking 15 Project Timeline

• Where are we in the process? • The project is currently in tender phase • Final RFP is due in Q3 2021 • We will engage the market during June/July/August 2021

INDUSTRY EXEMPLAR ENGAGEMENT HEALTH PREFERRED PROJECT NOW SUBMISSION BIDDER START

Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 2021 2022

16 Opportunities

The scope, scale and duration of the Project provides significant opportunities across a broad range of goods and services • Largest project in Frankston • ~3 year construction period, plus 25 year maintenance phase

Scope of goods and services is not limited to traditional civil construction trades • Exemplar Health and the ICN will work with local suppliers and contractors to identify opportunities for them to contribute to Project

Seeking innovative ideas and approaches to deliver on Government’s objectives

17 Example Opportunities

Civil & Structural construction • Earthmoving • Concreting • Steel structure, etc.

Mechanical & Electrical Fit-Out • Ventilation safety • Electrical • Fire suppression system

Facility Maintenance • Cleaning • Landscaping • Security, etc.

18 Jacqui Saultry Regional Social Sustainability Manager – Lendlease Building Government Policy Government Policy

• Local Industry Development • 91 % Local Content ( Aust/NZ) • 80 % Operational Activities • 40 % FF&E Procurement • Major Project Skills Guarantee • 10% of the estimated labour hours are performed by apprentices, trainees and cadets • Workforce Development Plan • Aboriginal participation 2% of the D&C or operation phase workforce • Opportunities for disadvantaged Victorians • Public Tenant Employment Program • Social Procurement • Target of 1.5 % of D&C price • Minimum of 1% Of D&C price on Victorian Aboriginal businesses

21 Victorian Social Procurement Victorian Social Procurement - Strategy

• Opportunities for Victorian Aboriginal people • Opportunities for Victorians with disability • Women’s equality and Safety • Opportunities for disadvantaged Victorians • Supporting safe and fair workplaces • Sustainable Victorian social enterprise and Aboriginal business sectors • Sustainable Victorian regions • Big Build Integrated Model for Skills and Training

23 Brian Finnigan Senior Social Procurement Advisor – ICN Victoria 25 Chris Mansfield APAC Subcontract Category & Social Procurement Lead - Honeywell Maintenance Honeywell – Hard FM

• Honeywell is a leading international technology, manufacturing and service company • Workforce of 2,300 in Australia and New Zealand • Proven capability on major projects in Victorian • Honeywell and Compass have partnered successfully for the recent New Footscray Hospital PPP • Services Contractor on the Victorian Comprehensive Cancer Centre PPP Queensland Children’s Hospital • Many other successful projects across health, hospital and corrections sectors. • Honeywell has been on site at the Frankston Hospital providing maintenance diagnostic services/ FM services to Peninsula Health since

the 1990s Victorian Comprehensive Cancer Centre

28 Honeywell

• Honeywell invents and commercializes technologies that address some of the world’s most critical challenges around energy, safety, security, productivity and global urbanization. Honeywell operates in approximately 70 countries and employs approximately 113,000 employees. Honeywell globally manages business operations through 5 different business segments • Honeywell has a holistic approach to create “Connected Hospitals”

29 Honeywell – Health Experience

Healthcare PPP Other Healthcare

• New Footscray Hospital • Victorian Comprehensive Cancer Centre • Centre for Agribioscience • Royal Adelaide Hospital • Fiona Stanley Hospital • Long Bay Prison and Forensic Hospital • Calvary Mater Hospital – Newcastle • Mt Gambier Hospital • Port of Augusta Hospital

30 Bren Gray GM Procurement & Supply Chain, Compass Group - Foodbuy 32

WE OPERATE WE WORK WE WE IN OVER IN OVER EMPLOY OVER SERVE OVER 45 55,000 600,000 5.5 billion COUNTRIES CLIENT GREAT MEALS A LOCATIONS PEOPLE YEAR

• $1.4b+ turnover (CGA), $46b (global)

• Operating in Australia for over 40-years

• 11,000 Australian staff, 500,000 globally

BRISBANE • 7 operating brands

PERTH • Operate on more than 500 sites nationally ADELAIDE SYDNEY

MELBOURNE • Founding member of Supply Nation

• Recently successful on the Footscray Hospital

project Compass Group – Soft FM

• Compass Group is a leading international food and support services provider, has an annual turnover of more than £25 billion, operates in 45 countries and employs over • Half a million people globally & 11,000 strong workforce in Australia • Proven capability • Currently delivering services to eleven hospitals across Australia • Scalable business model to be able to deliver on Frankston Hospital and additional services throughout the PPP term • As a global business, Compass will leverage global experience, innovation and local lessons learned across the healthcare industry to deliver on the State’s objectives.

33 34

Our work covers Soft FM including; Newcastle Mater Hospital PPP • Onsite Security

• Cleaning

Long Bay Forensics • Grounds and gardens Hospital PPP

• Pest control

• Waste Management Queensland Children’s Hospital • Food (not included in project scope)

University of Canberra Hospital PPP 35

• Standalone supply chain function in-house

• Dedicated resource to help onboard suppliers

• Committed to supplier diversity

• Committed to Indigenous employment and

business engagement (founding member of

Supply Nation)

• Source standards

• Values

• Elevate Reconciliation Action Plan

• Ethics (animal welfare)

• Sustainability commitments

• Business Council of Australia SME supplier

payment code 36

Register your interest : www.foodbuy.com.au Key Assessment Criteria

• Capacity, capability & price • Health and safety culture • Environment and sustainability • Recycled content, carbon footprint, environmental labels & reporting capability • Local content and reporting systems used to track local content • What is the traceability of content within your supply chain? • Commitment to workforce training and development • How many apprentices, trainees and cadets do you employ and what programs do you have in place for training and development? • Providing social impact • How does your business provide social benefit?

37 ICN Overview and ICN Gateway Registration of Interest Process 39 40 41 42 43 44 45