Building Schools for the Future

LEP and FM Managed Services

Hertfordshire County Council

9 January 2008

Alan Wilkinson

Objectives for the workshop

• To provide a briefing on the purpose, structure and processes involved with Local Education Partnerships.

• To explain the concept of FM Managed Services and to consider the implications for schools in Stevenage

• To allow opportunity for questions and discussion

4ps: who we are and what we do

We are:

A Local Government

organisation

Central body of the LGA

We have:

Local Government pedigree

Independence

We work with:

Local Government

Central Government and

Private sector partners

We Provide Support for:

Procurement of partnerships

and projects

Project delivery and Skills

Development

We also:

Act as a “critical friend”

Undertake Gateway

Reviews

•

How BSF is different?

scale ambition approach

• all categories of secondary schools

• 11-16, 11-18, upper schools, mid. schools & secondary special schools

• 2005/06 £2.1bn

• 2006/07 £2.2bn

• 2007/08 £2.2bn

• not simply a building programme - Transformational

• from patch & mend to rebuild & renewal

• strategic approach to funding, design, & procurement of buildings

• ICT integration

• design quality key to programme

• new procurement approach

• SfC to demonstrate how an education vision becomes reality

• new national body – Partnerships for Schools (PfS)

• ensuring VFM

• management process

How BSF works

• LA sets out

transformational, corporate & educational vision in SfC

Translation into

objectives for all

schools

Development of initial

OBC for phase 1 scheme

Procure PSP with supply chain

LA determine scope/ role of Private

Sector Partner (PSP)

Formation of a Local

Education Partnersh

ip

LEP delivers phase 1 scheme

LEP develops

and delivers waves of

investment in

accordance with SfC

Determining the procurement approach

Funding & Procurement Approach

Types of fundingPFI credits

Capital grantsCapital receipts

Prudential borrowingSchool contributionsSupported borrowing

Types of schools CommunityFoundation

Voluntary aidedAcademies

Trust schools

Types of Procurement Contracts•PFI

•Design & build•Soft/hard FM

•ICT

Procurement Structures•Strategic partnering

•Framework agreement•Local Education

Partnership

HERTFORDSHIRE BSF

Local Education Partnerships

What is the LEP?

A public private partnership with 3 elements:

• A private sector partner (PSP)

• A local authority (LA)

• BSF Investments (after PfS)

A ‘joint venture’

(JV) company

A limited liability company:

•Issues share capital

•Usual constitution

Shareholding =

PSP 80%

LA 10%

BSFI 10%

What does the LEP do?

“Local delivery vehicle for optimal deployment of strategic capital investment”

Exclusive right to develop proposals for and deliver BSF schools

Integrates ICT with design and build for optimal education outcomes

Undertakes maintenance and other premises services to some or all schools

Other work at LA discretion (if included in original OJEU notice)

Single point of contact for procurement and delivery

Local

AuthorityBSF Strategy for

Change

Local Stakeholders

(Schools, PCT,LSC)

Strategic Partnerin

g Agreemen

t

Local Education

Partnership

Supply Chain

BSFI (after PfS) (c10%)

Local Authority (c10%)

Private Sector Partner (c80%)

Shareholders Agreement

Strategic Partnering Board

LEP contractual arrangements

Scope of the LEP

EducationLeisure and

LibrariesRegeneration/ Social Housing

Construction PFI/D&B New Facilities New Facilities

Facilities Management

PFI FM

Secondary FM

Primaries FM

Leisure Management

All FMAll FM

Property Services

Business Cases

Project Management

Asbestos Surveys

New Business

Project Management

Asbestos Surveys

New Business

Project Management

Service Support

LEA Finance

Teacher Training

Finance

TrainingDelivery of Policy

Construction

Partner

Property Partner

Strategic Partner

Education Partner

10 years exclusivity for new project development

Possible extension for a further 5 years

Continues in existence for duration of PFI contracts

How long is the LEP set up for?

Stated advantages of the LEP approach

• Speed of procurement and familiarity

• One stop shop

• Subsequent projects

• Market appetite

• Supply chain management

• Consistency of service

• Project development

• Frees up in house resources

• Value for money

• Ability to respond to LA’s Strategy

Possible disadvantages of the LEP

• Additional complexity

• Costs of set up and management structure

• Equity costs to LA

• Strength of PSP in the structure

• Ensuring long term value for money

• Limited stakeholder influence

• Use of existing contracts

• New model for schools

HERTFORDSHIRE BSF

FM MANAGED SERVICES

Possible Scope of FM Managed Services?

• Caretaking and cleaning

• Day to day maintenance

• Life cycle maintenance

• ICT

• Catering

• Grounds maintenance

• Security

• Others

Delivery of FM Services

• Provided by the LEP

• Common standards across all BSF schools.

• Contract period

• Transfer of staff

• Training

Management of FM Services

• Specialist FM Provider

• Robust Client team at HCC

• Output specifications

• Use of help desk

Standards of Performance

• Monitoring regime

• Regular reports and meetings

• School involvement

• Payment mechanism

• Payment deductions for poor standards or unavailability

Value for money

Benchmarking of costs

Periodic market testing

Continuous improvement

Performance indicators

Involvement of PfS

Questions and Discussion

www.4ps.gov.uk