Cabinet Office Spending Control - Facilities Management

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The Crown Commercial Service (CCS) FM Category Team act on behalf of Cabinet Office to review all new Central Government FM procurements and contract extensions. This is to ensure:

 Compliance with the PEX(ER) mandate for Departments to utilise the HMG central procurement vehicle for FM, the CCS Facilities Management Contracting Model.  Unnecessary expenditure is stopped.  Best value for money.  Inclusion of certain criteria within contracts.  Requests are aligned to Government policy including the property reform agenda.

The FM Control works within the framework of the wider Cabinet Office Spending Controls. Please follow the link for further details, including scope, exemptions and non-compliance: https://www.gov.uk/government/publications/cabinet-office-controls

Approvals

Please ensure FM control forms are submitted at the correct stage (SOBC/OBC/FBC) prior to the issue of any tender documents or extension agreements, with sufficient time for scrutiny and decisions to be taken. For further information on these stages please see the link to HMT guidance.

New contracts – approval is required at Strategic Outline Business Case (SOBC)/Outline Business Case (OBC) stage:  Under £10m Total Contract Value (TCV) – delegated authority is given to CCS FM Category to approve.  Over £10m TCV – CCS FM Category work with the Cabinet Office Commercial Standards and Assurance Team (CSAT) to scrutinise and seek Ministerial approval.

New contracts – at preferred supplier stage prior to contract award/Full Business Case (FBC):  Under £10m TCV – inform CCS FM.  Over £10m TCV – CCS FM Category to submit Recommendation to Award to the Cabinet Office Commercial Standards and Assurance Team (CSAT) for final Ministerial approval.

Extensions – approval is required at the option appraisal stage (FBC):  Under £10m TCV of the extension period (inc those with a Strategic Supplier) – delegated authority is given to CCS FM Category to approve.  Over £10m TCV of the extension period - CCS FM Category work with Cabinet Office Commercial Standards and Assurance Team (CSAT) to scrutinise and seek Ministerial approval.

UNCLASSIFIED FM Approval Form v18 1 UNCLASSIFIED

All approval forms should be sent in the first instance to: [email protected]

Attachments

Please note that where possible, we will need to see supporting business cases and 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 procurements and contract extensions less than £10m total contract value, there is a 10 working day SLA for the CCS FM Category to return signed off approvals to departments. Please note this does not include the time taken to resolve clarifications, whereby the case will be “paused” on the HMG Controls Tracker once queries are issued to Departments. This will be restarted when answers are received back.

For new contracts or extensions with TCV >£10m, the time to sign off approvals will be 28 calendar days from submission to CCS. Contracts of this type will need to be submitted to the Cabinet Office Commercial Standards and Assurance Team (CSAT). They will submit recommendations to the Minister for the Cabinet Office (via the Crown Commercial Representative where a strategic supplier is known).

For more information or to submit an FM approval, please contact: [email protected]

FM Controls Approval Form CCS FM Ref Number

Department/ALB

Title of Contract

Date submitted

Please provide full postal address of property(ies) included in the contract (add attachment if required)

Section 1. Request for New Procurement Section 2. Request for Contract Extension Section 3. Decision form Section 4. Recommendation of Contract Award

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1. Request for New Procurement 1a: Term of Contract (years): e.g. 5+1+1 1b: Name of Current FM Contractor(s): 1c: Utilise the CCS FM Contracting Model: (If no, please provide brief explanation of the request to be exempt from Yes No the mandate) Comments

1d: Forecast Timescale for Procurement Activity  OJEU Issued (N/A to FMCM call-offs):  Tenders Issued:  Contract Award:  Go Live: 1e: Financial Summary of Spend Request  Departments are requesting permission to procure against a projected contract cost. This projection should take account of the best objective accurate guess of the cost, and if savings are anticipated, the value of approval should be reduced. Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Totals (£k) Current run rate / No change forecast (a) Savings-Commercial

Savings-Scope/Reorg

Total Savings (b) Spend Requested (a - b) Comments We would be grateful for a short explanation that provides information / commentary / assurance on the spend figures. Details of other non-cashable benefits, with supporting evidence.

1f: Contract Model Integrated FM Single Service Managing Agent (TFM/HFM/SFM) Comments If this is a new commercial model (i.e. aggregation of many single services into TFM) please state.

1g: Procurement Strategy Yes No Department approved business case / procurement strategy attached Options Analysis Gateway Review Undertaken (if so please attach as supporting evidence) Market engagement exercise carried out?

New Commercial Model for Department Have you built competitive tension into the procurement approach? In developing the options for this request, has consideration been given to the Government Property Unit reform agenda, specifically the following initiatives:  Property Shared Service Clustering  Regional Hubs Comments – please use the space below to reference each point to the business case, or to provide details if these are not in any other document supplied.

1h: 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 any provisions been built into the contract on pricing? i.e. open book; day rates; indexation etc Key conditions to manage supplier performance including description of any payment mechanisms or other relevant clauses applicable to the commercial case for managing the supplier and why these will assure VFM. Outline of key commercial risks and mitigations Contract and Supplier Management Risk Management Approach or Issues Transition or exit arrangements / issues? Comments – please use the space below to reference each point to the business case, or to provide details if these are not in any other document supplied.

1i: Compliant Criteria Yes No Supporting Apprentices and Skills through public procurement, in line with Procurement Policy Note 14/15 (Contracts above £10m TCV and duration of 12 months and over). 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. Provision of a 90 day/3 month termination clause. Incorporate the FM Framework Service Standards within any specification for offices (where applicable). Provide Management Information on total Contract cost, actual spend and performance data and savings (Procurement Policy Note 06) and enable management information to be shared with the CCS FM Category. Catering Contracts - where possible any catering contracts should aim for nil subsidy or best commercial model. Satisfy the Transparency agenda through Publication of all tender documentation (PQQ, ITT and T&Cs) on Business Link website. Input to the FM benchmarking service via e-PIMS. Publication of all new FM contract opportunities (over £10k) in full through contracts finder. Ensure that opportunities for SME’s are available either through second

UNCLASSIFIED UNCLASSIFIED tier contracting, fair payment practices are applied including the use of Project Bank Account where possible. Available for use by other Departments/ALBs? Comments - please use the space below to reference each point to the business case, or to provide details if these are not in any other document supplied (some criteria may not be applicable to all requests)

2. Request for Contract Extension 2a: Term of extension period 2b: Regular or irregular extension: 2c: Extension commencement date: 2d: Name of Current FM Contractor(s): 2e: Latest date for extension confirmation to supplier: 2f: Financial Summary of Spend Request Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Totals (£k) Current run rate / No change forecast (a) Savings-Commercial

Savings-Scope/Reorg

Total Savings (b) Spend Requested (a - b) Comments We would be grateful for a short explanation that provides information / commentary / assurance on the spend figures.

2g: Contract Model Integrated FM Single Service Managing Agent (TFM/HFM/SFM) Comments Please provide detail of why you have chosen this approach including reason for extension and not new procurement exercise.

2h: Type of Contract Yes No Crown Commercial Service Framework Other Departmental or Buying Organisation Framework/Contract Comments

2i: Commercial and Compliant Criteria Yes No Department approved business case attached? 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 Previous scope changes in the contract? Have Overhead and Margins been identified? Has any benchmarking been carried out to confirm the existing price is competitive to ensure VFM? Has data been provided to highlight this is a well performing contract/supplier? Have there been any previous contract extensions? Clearly demonstrate Value For Money for Government as a whole. Provision of a 90 day/3 month termination clause. Catering Contracts - where possible any catering contracts should aim for nil subsidy or best commercial model. Provide Management Information on total Contract cost, actual spend and performance data and savings (Procurement Policy Note 06) and enable management information to be shared with the CCS FM Category. Input to the FM benchmarking service via e-PIMS. Available for use by other Departments/ALBs? In developing the options for this request, has consideration been given to the Government Property Unit reform agenda, specifically the following initiatives:  Property Shared Service Clustering  Regional Hubs Comments – please use the space below to reference each point to the business case, or to provide details if these are not in any other document supplied.

3. Decision Form Approval to proceed Yes No The CCS FM Category are satisfied that the processes carried out meet the requirement for centralised procurement of goods and services and offer best value for money for Government as a whole.

Procurements or extensions Over £10m in Total Contract Value Yes No All new contracts or extensions over £10m in TCV will be submitted to the Cabinet Office Markets and Suppliers Team for further approval as part of the Cabinet Office Controls.

Date submitted to Cabinet Office Commercial Standards and Assurance Team (CCS FM Category to complete):

Procurement of a New Commercial Model Yes No

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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 Category to complete):

Comments

Signed

Title: Department Signature:

On behalf of FM Category, Crown Commercial Service CCS Signature:

Internal CCS Use Entered on Approvals Log Date: Initials:

4. Recommendation of Contract Award

(This section should be filled in and returned to CCS FM Category once evaluation has taken place and a preferred bidder identified, prior to contract award)

Date (go live)

Supplier/s

Annual: Total Fixed Contract Value: Inclusive fixed fee element: Cost Elements Variable elements : Margin proposed – Prime*: Margin proposed – Subcontractor*: *Include any detail on profit, risk or other applicable margins proposed 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) 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? Value over £10m total contract (if yes, the Cabinet Office Commercial Standards and Assurance Team will be need to be notified BEFORE award, for further strategic supplier approval from MCO – carrying a 28 day SLA)

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.

Signed on behalf of customer

Name: Position: Signature: Date:

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