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Facilities Management Cabinet Office Control Scope
The Crown Commercial Service (CCS) FM Category Team will act on behalf of Cabinet Office ERG to ensure the centralised procurement function of Facilities Management contracts is compliant. They are a mandated requirement as part of the Cabinet Office Spending Controls https://www.gov.uk/government/news/new-government-spending-controls-to-deliver-billions- more-in-savings to approve all new FM procurements and contract extensions to ensure contract compliance is met.
The Cabinet Office controls have three broad objectives: To stop unnecessary expenditure To support organisations to deliver better value for money To support organisations to deliver reform that is aligned to Government policy
The Cabinet Office controls apply to all bodies listed under the Office of National Statistics (ONS) definition of central government, this includes: All Central Government Departments The majority of government agencies The majority of non-Departmental public bodies (NDPB’s) Most other non-market bodies that are majority controlled and/or financed by Departments Certain public corporations are also in scope and subject to the Cabinet Office controls including GovCos that are considered by ONS to be a central government body The following are not included: Broadcasters The NHS Further education colleges, universities and academies Olympic bodies Site Licence Companies (SLC’s) See Section 1.8 of main controls document above for further details on scope.
Services in scope for FM Controls include (but are not limited to):
Bundled FM Contracts (Total, Hard, Soft) Waste Management/Disposal Security Internal Plants & Decorations Catering Reprographics Cleaning Grounds Maintenance Internal Repair & Maintenance Post Room/Internal Distribution Services M&E Repair & Maintenance Condition Surveys External & Structural Repair & Maintenance Sports/Leisure/Child Care Facility Management Courier & External Distribution Services Office Machinery Servicing and Maintenance Reception Services Archiving
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Approvals All new facilities management (FM) contracts and contract extensions must be approved by the FM Category and meet with the CCS FM compliance criteria. There is a two stage approval process spanning two controls – the FM Control and the Strategic Supplier control for new contracts over £5m total contract value where a Strategic Supplier is being appointed. The stages are detailed below:
New contracts – approval is required at Outline Business Case (OBC)/procurement strategy stage: Under £5m Total Contract Value (TCV) – delegated authority is given to CCS FM to approve. Over £5m TCV – CCS FM submits to CCS Commercial Intelligence Team for Ministerial approval.
New contracts – at preferred supplier stage prior to contract award: Under £5m TCV – inform CCS FM. Over £5m TCV – with a strategic supplier, CCS FM to submit Recommendation to Award to CCS Commercial Intelligence Team for final Ministerial approval. Over £5m TCV – non-strategic supplier inform CCS FM.
Extensions – approval is required at the option appraisal stage: Under £5m TCV of the extension period non-strategic supplier – delegated authority is given to CCS FM to approve. Under £5m TCV of the extension period with a strategic supplier – CCS FM to request comment from CCS Commercial Intelligence Team but have delegated authority to approve in-house. Over £5m TCV of the extension period with a strategic supplier - CCS FM submit to CCS Commercial Intelligence Team for Ministerial approval. Over £5m TCV of the extension period non-strategic supplier - delegated authority is given to CCS FM to approve.
CCS FM will report all approval cases to the Facilities Management Board (FMB) on a monthly basis.
The Cabinet Office controls documents for both Facilities Management and Strategic Suppliers can be found at https://www.gov.uk/government/publications/cabinet-office-controls/cabinet-office- controls-guidance-version-32
Please see process flow attached for further information including timescales.
All approval forms should be sent in the first instance to: [email protected]
Please ensure FM control forms are submitted at strategy stage, prior to any OJEU or tender documents being issued and with sufficient time for decisions to be taken.
The Cabinet Office Central Spending Controls supplement existing rules and processes regarding public expenditure.
The Cabinet Office Spending Controls work within the broader framework of Managing Public Money and Treasury approval of expenditure through the practice of delegating authority to departments to enter into commitments and spend within predefined limits without specific approval.
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For most controls, the Treasury has lowered the level of delegation and will not approve spending without the Cabinet Office’s prior approval. In other cases, Cabinet Office approval is required for spending in areas that have been collectively agreed as Government policy at the Public Expenditure Committee (Efficiency and Reform).
What has to be approved applies equally to ALB’s as it does to departments, but departments will continue to set ALB delegations below central approval limits.
Compliance
Compliant contracts are defined as contracting models that are approved by the Crown Commercial Service and meet with the stated compliance criteria and that fit with the wider CCS/ERG FM strategy requirements.
These are: Contracts which are open to departments and their family members (ALBs, NDPBs) with the ability to be managed through the contract administration of the parent organisation. The appropriate OJEU wording must be in place in order to minimise the risk of infraction; Crown Commercial Service Frameworks or other department collaborative FM frameworks; Public Buying Organisation (e.g., Pro5, Procure21 contract agreements/frameworks) that fit compliant criteria; Contracts that use the un-amended terms and conditions as found within the NEC suite of contracts. Where z-clauses are added, these should be made visible to ensure standard and consistent requirements are met.
They should: Incorporate the FM Service Standards within any specification for offices (where applicable); Have the ability to fit into the wider CCS/ERG FM strategy through contractual conditions that allow contracts to comply and integrate into a new model (e.g. transparency of FM data as requested); Understand that the FM Contracting Model will be available for use from end-Feb 2015, with consideration for the following: - Call off procedure - Mobilisation period (up to 6 months) Clearly demonstrate Value For Money for Government as a whole; Provide Management Information on total Contract cost, actual spend and performance data and savings (PPN06) and enable management information to be shared with the CCS Managed Service function; Provide a 90 day/3 month termination clause; Ensure the contract includes requirement to monitor energy, waste and water consumption and provides incentives to minimise these; Meets with the Government Closed Loop paper recycling policy which utilises the Government Office Supplies Contract ; Where possible any catering contracts should aim for nil subsidy or best commercial model; Input to the FM benchmarking service via e-PIMS; Satisfy the Transparency agenda through Publication of all tender documentation (PQQ, ITT and Ts&Cs) on Business Link website;
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Publication of all new FM contract opportunities (over £10k) in full through contracts finder; and Ensure that opportunities for SME’s are available either through first or second tier contracting, fair payment practices are applied including the use of Project Bank Account where possible.
Non-compliance
Non-compliant and retrospective requests for FM contracts that have already gone to OJEU, competition or have been awarded will not be approved and will be escalated to Cabinet Office Central Controls, who will take further action with the department’s Single Point of Contact for Controls (SPOCs) which may include: Escalation to senior official level – CO COO or CPO would write to relevant senior leads in ALBs or parent departments to highlight the issue Escalation to Ministerial level – As above only Minister to Minister Lowering of thresholds – If an organisation breeches repeatedly, the Controls team has lowered the threshold at which they are required to see approval Qualification of accounts – Engagement with NAO to highlight non-compliant spend when it comes to auditing of accounts. This would flag up that spend as ‘irregular’ and kick off a reporting requirement.
Attachments
Please note that where possible, we will need to see supporting documentation as attachments. This will speed up the signing off process significantly. Where documents are not available please state clearly, in the comments boxes (which are expandable), the reasons why.
Forecast Benefits
Please clearly identify forecast cashable savings in a year on year basis that demonstrates the overall benefit for the period of the contractual arrangement using current expenditure as the baseline. These savings should be updated when submitting the Contract Award Report.
Expected Timescales (for sign off)
For all compliant and straightforward contracts and contract extensions less than £5m total contract value, there is a 10 working day SLA for the CCS FM team to return signed off approvals to departments. Where contracts are over £5m the time to sign off approvals will be 28 calendar days from submission to CCS. Those contracts with strategic suppliers will need to be submitted to the CCS Commercial Intelligence Team for further review/scrutiny and where necessary Commercial Models team. The CCS Commercial Intelligence Team will submit recommendations to the Crown Commercial Representative where a strategic supplier is known, and will decide if the request requires further ministerial approval (please see the process flow at the back of this form).
For more information or to submit an FM approval, please contact: [email protected]
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FM Procurement Approval Checklist CCS FM Ref Number
Department/ALB
Title of Contract
Date
Please provide full postal address of property/ies included in the contract (add attachment if required)
Request for Yes No New Procurement
Total Contract Value (for term of contract) e.g. 3+2 TCV is for the 3 year period not the extension period
Include fixed and variable elements
Annual Value of Procurement Annual Value of current provision Term of Contract (years) e.g. 3+2 Name of Current FM Contractor(s)
Timescale for Procurement Activity
OJEU Issued: Tenders Issued: Contract Award: Go Live: Contract Extension Total Contract Value for extension period e.g. +2
Annual Value of Extension Term of Extension (years) TFM Single Service Managing Agent Bundled
Other (please detail below)
Please provide detail of why you have chosen this approach below including reason for Extension UNCLASSIFIED FM Approval Form v15 5 UNCLASSIFIED and not New Procurement Exercise. If this is a new commercial model (i.e. aggregation of many single services into TFM) please state in the comments box below Comments
Type of Contract Yes No Crown Commercial Service Framework Other Departmental/Buying Organisation Framework Other Compliant Contract (see front page for definition of compliant) Non-Compliant Contract ( see front page for definition of non-compliant) Comments – please explain if requirement is for Non-Compliant Contract
Procurement Strategy Yes No Business case/ procurement strategy attached Have you built in competitive tension into the procurement approach? Savings/benefits identified with supporting evidence for contract period Total annual contract costs identified Options Analysis Gateway Review Undertaken (if so please attach as supporting evidence) New Commercial Model for Department
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Comments
Commercial Criteria Yes No Has a breakdown of CAPEX, REVEX, OPEX and lifecycle costs been identified?
Has the pricing structure been explained? i.e. Fixed Price; Fixed Price Incentive; Cost plus Fixed Fee; Cost plus Incentive Fee; etc Have Overhead and Margins been identified? Has any benchmarking been carried out to confirm the existing price is competitive to ensure VFM? If yes, please detail below.
Have there been any previous contract extensions? If yes, please detail below.
Have any provisions been built into the contract on pricing? i.e. open book; day rates; indexation etc Comments – please use the space below to provide details if these are not in any attached business cases or procurement strategies.
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Please highlight savings that are being forecast to be delivered per year Year (please state) Total £m £m £m £m £m £m Savings Saving 1 Saving 2 Saving 3 Savings achieved
Compliant Criteria Yes No Incorporate the FM Service Standards within any specification for offices (where applicable) Have the ability to fit into the wider CCS/ERG FM strategy through contractual conditions that allow contracts to comply and integrate into a new model (e.g., transparency of FM data as requested) Understand that the FM Contracting Model will be available for use from end- Feb 2015, with consideration for the following: - Call off procedure - Mobilisation period (up to 6 months) Provide Management Information on total Contract cost, actual spend and performance data and savings (PPN06) and enable management information to be shared to the CCS Managed Service function Provision of a 90 day/3 month termination clause Available for use by other departments/ALB’s etc Clearly demonstrate Value For Money for Government as a whole Ensure the contract includes requirement to monitor energy, waste and water consumption and provides incentives to minimise these Meets with the Government Closed Loop paper recycling policy which utilises the Government Office Supplies Contract Satisfy the Transparency agenda through Publication of all tender documentation (PQQ, ITT and Ts&Cs) on Business Link website
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Publication of all new FM contract opportunities (over £10k) in full through contracts finder Catering Contracts - where possible any catering contracts should aim for nil subsidy or best commercial model Input to the FM benchmarking service via e-PIMS Ensure that opportunities for SME’s are available either through first or second tier contracting, fair payment practices are applied including the use of Project Bank Account where possible.
Contracts that use the un-amended terms and conditions as found within the NEC suite of contracts. Where z-clauses are added, these should be made visible to ensure standard and consistent requirements are met (add below) Comments – please comment if answer is No to any of above
Approval to proceed Yes No UNCLASSIFIED FM Approval Form v15 9 UNCLASSIFIED
The CCS FM Team are satisfied that the processes carried out meet the new Government requirements for centralised procurement of goods and services and offer best value for money for Government as a whole.
Procurement Over £5m in Total Contract Value or Extensions with Strategic Yes No Suppliers All new contracts over £5m in TCV or extensions with strategic suppliers will be submitted to the Commercial Intelligence Team for further ongoing approval as part of the Cabinet Office Controls. The Commercial Intelligence Team will decide if further approval required by the Minister for the Cabinet Office.
Date submitted to CCS Commercial Intelligence Team: (CCS FM to complete)
Procurement of a New Commercial Model Yes No If it is deemed that this is a totally new commercial model and not a traditional outsourcing arrangement, it will be submitted to the Commercial Models control team for further review. Date submitted to Commercial Models Team: (CCS FM to complete) Note: CCS FM to act as liaison between Departments and Commercial Controls. Comments
Signed
Name:
Title: Department Signature:
Date:
Name:
On behalf of FM Category, Crown Commercial Service CCS Signature:
Date:
Internal CCS Use Entered on Approvals Log Date: Initials:
Recommendation of Contract Award
(This section should be filled in and returned to CCS FM Team once evaluation has taken place and a preferred bidder identified, prior to contract award) UNCLASSIFIED UNCLASSIFIED
Date (go live)
Supplier/s
Annual: Total Fixed Contract Value: Cost Elements Inclusive fixed fee element: Variable elements :
Contract Term Pricing Basis: Fixed Fixed price incentive Cost plus fixed fee Cost plus incentive fee Time plus materials Other (please state) Contract Award Report to include Yes No Award Recommendation and details of basis for recommendation Evaluation criteria and scoring (final bidders) Details of costs and savings against baseline (final bidders) Details of service scope and properties included Contract Management structure supplier side and department side Incentive mechanism (if used) TUPE/Redundancy implications and risks/indemnities (department & supplier) Details of mobilisation timescales, costs, set up fees (including any CAFM/FM systems) Is a rate card being used? Is the contract open book? Investments & payback (department & supplier) Confirmed alignment to FM Contract Model What provision has been built in to address the risk of non delivery, slippage or overspend by the supplier? What benchmarking and checks have been done to confirm the price is competitive? Annual Value over £5m total contract value and with a strategic supplier (if yes, CCS Commercial Intelligence Team will be need to be notified BEFORE award for further strategic supplier approval)
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Confirmed Savings (cashable) Yes No Total Benefits £ Over number of years:
Total Contract Saving year 1 £ Year 2 £ Year 3 £ Year 4 £ Year 5 £ Please add further years if applicable.
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