New Procurement & Delivery Arrangements for the Schools’ Estate Presentation to Strategic Advisory Group 18 April 2005.

New Procurement & Delivery Arrangements for the Schools’ Estate

Presentation to Strategic Advisory Group 18 April 2005

Key Issues Raised Need for greater integration and co-ordination of estate planning.Short-term approach to capital planning & LTE projection.Need for more robust & consistent information on condition & suitability of schools. Distribution & use of specialist resources.Time, cost & delivery implications of existing procurement approach.Delays in PPP Projects. Optimisation & transparency of maintenance activity.Policies on provision of FM services.

Essential Requirements Maximise impact on educational outcomes.Consistent with statutory responsibilities, accountabilities. Fairness and transparency – based on need.Financial commitments clearly identified and affordable in longer term.

Desired Characteristics Specialist procurement resource to support the

whole education service Streamline processes to avoid inefficiencies. Mechanisms to match school places to demand. Asset management approach that integrates

condition/suitability information. Single point of contact for provision of estate

services. Facilitate any desired mix of conventional and PPP. Policies on provision of facilities management. Collaborative working between public and private

sectors.

Desired Characteristics (cont’d)Commercially viable arrangements that

utilise the full capacity of the market. Incentives for high levels of performance

and continuous improvement for public and private sectors.

Faster, more efficient & cost effective method of investment delivery.

Consistent, transparent & integrated approach to maintenance.

Flexibility of local provision and decisions to facilitate post-primary reforms.

Key Features of Proposed Arrangements

(i) Strategic Planning

(ii) Strategic Partnerships

(iii) Organising for Delivery

Strategic PlanningPlanning on a longer term for all school

sectors – local Strategic Partnerships to co-ordinate cross–sector planning.

Asset Management Plans for the whole estate, leading to 10 year Strategic Investment Plans (SIP).

Each school authority to develop their initial plans – leading to SIP for each local area.

Strategic Partnerships

Strategic partnerships with the private sector for:

Design and delivery of conventional and PPP projects.

Provision of maintenance and building-related FM services

Management of the supply chain.Management of a portfolio of school projects.

Strategic Partnerships (contd)

strategic partnership areas suggested. areas based on “education communities”. Scope would cover all schools in the area, regardless of sector. two contractual levels (strategic partnership and projects) partner has first right to deliver projects, subject to value for

money & benchmarking. partnership duration of 7 to 10 years. mechanisms to ensure ongoing value for money.

Organising For Delivery An “Education Infrastructure Procurement Service” to

support education authorities and DE in: Coordinating Strategic Investment Plans with periodic

reviews. Maintaining condition, suitability and sufficiency data. Preparing Economic Appraisals & Outline/Full Business Cases. Developing contractual framework and procurement

approach for strategic partnerships. Management of procurement of private sector partners. Developing/Managing projects to award of contract. Procuring individual projects – output specifications, pricing

and budgets. Managing contracts, performance and relationships with

suppliers. Strategic Partnership and Programme Boards

Potential Benefits Fit for purpose accommodation Long-term investment plans based on Asset

Management Planning & targeted at needFaster and more flexible approach to

investment (once partnership contracts are established)

Number of procurements substantially reduced

Specialist procurement resource to support all education authorities

Improved efficiency – less procurement and better integration of capital & maintenance and better match between provision and need.

Potential Benefits (cont’d)

Single point of responsibility for delivery Capital projects and services delivered under

incentivised performance regime – eg Key Performance Indicators, benchmarking

Opportunities for continuous improvement (VFM)

Delivers procurement best practice (Achieving Excellence)

Utilises private sector expertise, with potential for innovative delivery arrangements.

Next Steps Consultation with stakeholders.Review of Public AdministrationAffordabilityPlanning for Implementation:-

Asset management guidance and estate surveys;Project plan ;Develop guidance to Strategic Investment Plans;Procurement Service

Consultation ends on 27 June 2005.