Facilities Management Contract
Local Authority London Borough of Croydon Contract value £22 -24 million per annum
Length 7 years with optional extension of 3 years
Contract requirements
Croydon reviewed its management of the Facilities Management Services (FM) supply chain as part of a Council-wide Procurement “Service Transformation Project”. Changes were agreed to the management arrangements for the running of Council’s administrative buildings and the procurement of maintenance works and building related services and supplies with the aim of providing more efficient and effective services. The contract includes the typical FM services involving a range of Soft and Hard FM services as follows:
Hard FM Scope Soft FM Scope
Asset maintenance
Utilities/Energy Management
Cleaning Services
Catering Services
Security Services
Porter/Caretaking Services
Post room & Reprographic
Help Desk Services
OJEU Notice
A Services Prior Information Notice (PIN) was issued in May 2004 which initiated a market testing exercise. This looked at the best approach to facilities management in terms of value and quality, including sustainability. The subsequent OJEU Notice stated that the contract would be awarded on the basis of the most economically advantageous tender in terms of the criteria as stated in the contract documents which included sustainability issues. An Information Memorandum was issued to prospective applicants in response to the OJEU Notice, which highlighted the importance of sustainability in the contract:
The Council’s vision for Croydon “Is to create ‘a place’ which is safer, healthier, more prosperous and sustainable – a place where people choose to live, work and socialise, and one which is addressing the needs of the future.”
The Council has a renewed strong commitment to environmental sustainability, with respect to issues such as energy efficiency, renewable energy, waste reduction, recycling, reducing car dependency, water conservation and use of sustainable materials. It is very important to the Council that we can demonstrate good practice in our own operations as part of our Green Commitment, and also in order to promote opportunities for residents and implement our policies with substantial credibility. It is expected that such good practice is integrated cost-effectively into our Facilities Management.
Croydon is the first accredited Fairtrade borough in London. This is an important commitment of the Council.
Pre-Qualification Questionnaire
Questions related to sustainability are detailed at Appendix 1:
Issue covered What Croydon was looking for Environmental Management System
or Environment policy
Environmental management system in place and accredited.
Achievements indicating good progress on EMS or policy implementation and relevance to the contract.
Environmental Regulations Compliance with the Environmental Protection Act 1990 Key contact on environmental
issues
Senior person with the remit to make improvements.
Specifications &/or Contract Clauses
Sustainability related specifications are detailed in Appendix 2 and relate to the following elements of the contract:
Continuous Improvement, particularly environmental policies and waste minimisation
Environmental Management Systems
Linking into the Council’s Environment Forum
Environmentally preferable cleaning products
Whole life costing
Waste Minimisation and recycling
Utility Management
Integration with Council Policies
Supporting the Council’s position as a Fairtrade Borough
Supporting the local economy
Compliance with the Council’s Green commitment and Environmental Procurement Policy
Sustainability related Tender Evaluation Criteria
Tender evaluation was in line with the most economically advantageous solution to Croydon, the following weightings were applied:
Technical 60%
Financial, Legal and Commercial Compliance 30%
Human Resources and Diversity 10%
Cost in terms of NPV was considered separately and took precedence where a bid was deemed compliant and deliverable in terms of the above criteria. Further information on how the evaluation was completed is detailed in Appendix 3.
Issue covered What Croydon was looking for
Monitoring & Targeting Clear methods of data collection and measurement of sustainability requirements identified
Service Delivery Reduction of environmentally harmful chemicals
Energy and water conservation
Increased recycling and waste minimisation
Emission reduction from vehicle use
Sustainability improvements included in job descriptions and staff objectives
Increased provision of Fairtrade goods
Partnership Working Commitment to working with the Environment Forum
Clear plan and support for continual improvement on carbon emissions, recycling, water consumption, waste production, business mileage and use of sustainable products.
Method Statements
The method statements cover the following sustainability issues for all FM services
EMS – accreditation to ISO 14001
Sustainable Procurement / fair trade products
Utility Management, PPM, Lifecycle analysis and identification of opportunities to save energy
Waste minimisation and recycling
Lowering emissions generated through transport
Environmentally preferable cleaning products
Staff job description to include environmental specification.
Attendance at Environment Forum meetings to support the delivery of the Council’s Environmental Strategies as co-ordinated by the Environment Forum
Co-ordinate and work jointly with the Council’s appointed representative in develop and implement an annual LACMP, to deliver the commitment by the Council of year on year
reductions in energy consumption and carbon dioxide emissions, through exploring options for energy efficiency and on-site generation
Key Performance Indicators
There are 35 Key Performance Indicators relating to sustainability elements of the contract which cover the following areas:
Procurement for the London Mayor’s Green Procurement Code (energy efficient products, Fairtrade, sustainable timber, recycled content products etc)
Customer satisfaction relating to environmental improvements (complaints relating to recycling bins, service requests for recycling collections etc)
Training and induction sessions including environmental sustainability
ISO 14001 accreditation
Utility Management (energy and water consumption and management analysis, monitoring and targeting, exception reporting)
Reduction in carbon emissions
Maintaining waste reduction standards and increase in recycling levels
Lifecycle and PPM programmes are produced at the agreed time to the agreed content, format and quality, embedded within this are opportunities for energy efficiency improvements.
Lowering emissions generated through transport
Contract Management / Results / Value
• In July 2006 a Total Facilities Management arrangement was implemented, with the consolidation of over 50 contractors into just one.
• In just 12 months, £2m worth of savings have been identified on core services within the contract and savings on utilities. .
• This holistic approach has created clear communication channels between client and service partner with one point of contact and one invoice. This move alone has swept away the need for the council to deal with 28,000 separate invoices and has brought efficiencies in terms of administration and service.
• Contract improvements covering waste management; energy management; reducing carbon emissions; reducing vehicle emission and supporting Fair trade are outlined further in Appendix 4.
Contact
Tony MiddletonDivisional Director, Asset and Facilities Management London Borough of Croydon
Appendix 1 Pre Qualification Questionnaire Environmental Information
56. State whether there is or will be an environmental policy and/or “green” policy for any service likely to be provided in the proposed Project. If so, please state which part of the service the policy relates to. Please state whether your organisation operates an Environmental Management System (EMS) and if so, whether the EMS meets the standards in BS7750, ISO14001, EMAS or equivalent.
………
57. From the list below, what areas of environmental management does your policy address?
(a) energy use
(b) water use
(c) transport/vehicle use
(d) use of sustainable materials
(e) chemical/hazardous substance use
(f) solid/liquid waste
(g) emissions
(h) pollution
(i) staff training
(j) other
58. Does your organisation use/plan to use an environmental management system (EMS)?
YES PLANNED NO
59. Please outline, in a paragraph, what achievements you have made, in regards to question 57(a)- (j), and question 58 above, or provide your Public Environmental Statement, if this information is contained here.
...
60. Has your organisation:
(a) been prosecuted by any environmental regulator or authority (including local authority)?
YES NO
(b) had any notice served upon it by an environmental regulator or authority (including local authority)?
YES NO If the answer is YES to either or both of the above, please give details here:
...
61. Is your organisation in compliance with the Environmental Protection Act 1990, including relevant Regulations under the Act, relating to licensing and registration requirements?
YES NO If the answer is YES, please state the licence and/or registration number(s) and date of registration:
...
If the answer is NO, please state the reason:
...
62. Please name the main contact person in your organisation responsible for environmental management (please give title and telephone number also):
Appendix 2 Specifications
We require bidders to quote on the basis of compliance with Part A, and to state their position and steps they can take on each of the points under Part B.
A. General
Continuous Improvement, particularly environmental policies and waste minimisation.
Proactively co-operate with council staff on an ongoing basis and work to develop and implement new practices to improve environmental impact, through new opportunities for waste reduction, recycling, energy saving, use of renewable energy, reduction in motor vehicle use, use of cleaner vehicles and use of sustainable materials.
Recycling of paper should be made the easiest mode of paper disposal for all council staff and other staff working on council premises (i.e. white paper bins for recycling will be more
conveniently located than general rubbish bins).
Use of scrap paper rather than virgin paper by all staff for note-taking and message-taking.
All staff, when using envelopes for internal communications, re-use received envelopes as first option, and reusable internal envelopes as second option.
All staff to always use recycling facilities for disposal of waste when appropriate facilities are available.
All staff to follow good housekeeping measures with respect to saving paper and general waste reduction, energy saving, use of recycling facilities.
All staff to use public transport, walking or cycling as the preferred mode of transport between sites when possible, and ensure travel allowance systems reflect this.
Environmental Management Systems
The scope of General FM requirements will include Environmental Management Systems and initiatives that may emerge from the Council’s corporate Environment Forum Green Commitment, and the Environmental Procurement Policy.
Environment Forum
The Environmental Forum will be held every three months. They will co-ordinate continuous environmental improvement across all Council activities and will make recommendations on improvements to FM services and ensure effective communication with staff and [the Contractor]
on environmental issues.
Sustainable cleaning products
The Council will minimise resource, chemical, energy and water consumption in all areas of office servicing. Examples of this include:
à Selecting uncoloured, unbleached, recycled toilet paper and towels.
à Providing roller towels (to be used in preference to paper towels).
à Selecting biodegradable products when purchasing detergents & cleaning products.
The Council will not purchase any cleaning materials containing:
à More than 0.5% phosphorous à Nitrilo-tri-acetic acid
à More than 3% of ethylene-diamino-tetra-acetate à More than 5% by volume of chlorine
à More than 3% by volume of optical brighteners, synthetic colours and perfumes.
Building recycling and Energy conservation
Ensuring that lights and electrical appliances are not left on when not needed, through including responsibility for switching off in the remit of security, cleaning and portering staff.
Attaching water saving devices to all bathroom and kitchen taps and cisterns.
Checking and reporting faults such as water leaks, dripping taps, malfunction of energy saving features through including responsibility for monthly checks in the remit of security, cleaning or portering staff as appropriate.
Correcting reported incidents of water leaks, dripping taps, malfunction of energy saving features within 1 day of report.
Minimise paper use in recording and reporting procedures.
Cold drinking water should be provided to council staff, other staff and customers on council premises through chilling of mains tap water. Any bottled water systems should be removed.
Provision and operation of effective internal recycling services for all council premises where external recycling collection can be provided, including recycling of all white paper, coloured paper, cardboard, cans, cartridges, glass bottles and jars. Adaptation of these over time systems as necessary.
Supply Chain supporting the local economy.
We welcome input to how the contractor can support Council policies such as its ‘Fairtrade borough’ status and local economic development strategy.
Compliance with the Council’s Green commitment and Environmental Procurement Policy, and its Supplementary Guidance
Induction for all staff to include emphasis on the importance of the Council’s Green Commitment Policy, and specific guidance on how to address this policy in work, as outlined in this contract specification.
Follow the Council’s Environmental Procurement Policy and its Supplementary Guidance for all purchasing decisions, and consult the Environment and Sustainability Team for advice when this might help in the policy’s application.
Co-operate with Council staff in ensuring that good environmental practice in the workplace is well-communicated, made as easy as possible, and enforced throughout the organisation, including contracted non-Council staff working on council premises.
Reprographics and Post
Use of only Energy Star rated photocopiers, which have an automatic ‘low energy’ mode when not in use, and which can switch in under 5 seconds to operational mode.
Support initiatives to encourage staff to reduce paper use
Setting all photocopiers to switch automatically to energy save mode if unused for 5 minutes.
Effective signs up to encourage all staff to photocopy double-sided and to put the photocopier to energy save mode when completed (if this can be operated manually).
Copying everything double-sided unless explicitly stated otherwise
Ensure recycling of all waste white paper, and other recycling facilities as they develop
Provide used envelopes which are in good condition for re-use B. Cleaning
In addition, we expect the contractor to adopt the following good practice:-
Use chemicals which are phosphate free where possible (i.e. going beyond the 0.5% limit)
Use pump sprays rather than aerosols where possible
Avoiding toilet blocks that contain paradichlorobenzene
Avoid petroleum based products where possible, particularly those that contain the foaming agents NTA and EDTA. Substances, which are water based or low in solvents, are preferred.
Avoid chlorine-based bleaches
Where possible, use multi-purpose cleaners
Minimise waste wherever possible
Co-operate with the Council with respect to new opportunities and developments on use of environmentally more sustainable materials, expansion and use of recycling services (e.g. future recycling of more materials such as plastic, batteries) and energy saving opportunities.
Appendix 3 Tender Evaluation.
Weightings for individual FM service areas are outlined in the table below, where the total score for technical criteria accounted for 60% of the final score. Sustainability requirements were incorporated into the scores given for each service area.
Evidence Service Area Weighting
General Specification 3
Asset Maintenance 31
Utilities & Energy Management 14
Soft FM 24
Help Desk & Data Management 11
Mobilisation 8
Contract Management 9
Method Statements
TOTAL 100
Appendix 4 Contract Results/Value
This contract has not just been about efficiency savings though, the FM contract is leading to big improvements in services such as reducing waste and increasing recycling and switching to more sustainable energy solutions.
Waste Management - in order to cut down on waste, the FM team immediately removed all plastic cups and paper plates from the meeting rooms in the central civic complex, replacing them with glasses and crockery. Interserve supports recycling facilities at over 120 council properties, including an on-going awareness programme in partnership with the Council’s Environment and Sustainability Team. This has enabled the council to improve recycling levels by 15% and to set further ambitious targets for improvements.
Energy management - utilities are now monitored in terms of usage and expenditure, and energy saving practices have been implemented to change culture (e.g. during patrols, all security teams now ensure lights are switched off in empty rooms).
Reducing carbon emissions – Interserve has supported the Council’s Carbon Management Programme and investment through the LAEF fund (Local Energy Finance Scheme) in measures with under a 5 year payback period, such as lighting controls and insulation.
Reducing vehicle emissions - Interserve has introduced mobile vehicle tracking technology to deploy mobile teams more efficiently and reduce vehicle mileage and emissions.
Supporting Fairtrade - In 2007 Interserve submitted adventurous plans to completely refresh and update the staff deli service currently used by over 2,000 Council employees in the central civic complex. The redevelopment of this service has allowed Interserve to strengthen its commitment to supporting the Borough’s Fairtrade status and Environmental Procurement Policy with better promotions in the Deli and greater choice of Fairtrade products. There are Fairtrade options in other Interserve managed catering services, such as the Clocktower cafe. Provision of accredited Fairtrade tea and coffee is the default option for council meetings and functions.
Tony Middleton, Divisional Director, Asset and Facilities Management at Croydon LBC, commented:
“Transferring FM responsibilities to Interserve has allowed the Council to take a more effective and strategic overview of its services and consider how best to develop them in the next few years. There has been an ongoing dialogue between the council and Interserve since the contract began, and this will continue to be the way we do business throughout the life of this exciting partnership.”
