RM6165 Construction Professional Services Market .

RM6165ConstructionProfessional ServicesMarket Engagement11th August 2020

Format & Etiquette Please ensure your microphone is muted throughout thepresentation The slides today will be presented with the opportunity for theaudience to post questions during the presentation using thechat function. Questions submitted through the chat function will be recordedand responses will be provided after the event. Responses willbe posted on CCS website page and will be anonymous. A copy of the slides presented today will be available on theCCS website Follow up survey will be issuedAll information presented during today is currently still in draft format andsubject to change or amendment.

Market EngagementAug 2020Introduction& Purpose

IntroducingCrown Commercial ServiceAndThe Buildings Pillar

Introducing Crown Commercial ServiceWe help organisations across the entire publicsector save time and money on buying theircommon goods and services Commercial expertiseSupporting frontline servicesSignificant savingsCustomer focusedBulk buying power 18bn of public sector spend went through CCS commercialagreements last year and we aim to achieve more than 1bn ofcommercial benefits for our customers annuallyfor 2020/21 and into 2021/22

Introduction to the Buildings PillarThe CCS Buildings Pillar supportsour customers through the building,operation and management of theBuilt Asset.We offer a full lifecycle service forproperty, construction,infrastructure consultancy projectsacross all RIBA stages.Using our extensive knowledge ofthe market and suppliers,customers can access commercialagreements for all of their buildingsneeds, whilst being reassured thatthey are efficient, effective andcompliant.

Policy ContextCCS Construction aims to facilitate the incorporationof a range of government policies. This includes, butis not limited to: Support Covid Recovery Drive Collaboration and Early engagement Reducing Commercial Friction Delivering Projects Faster Making Government a Better Client Modern Methods of Construction Improved Productivity / Value for Money Implementing BIM & digitisation Promoting Fair Payment, Project Bank Accounts Embed Social Value in what we deliver Enhancing Technology / Information Security

CCS Construction Integrated 1ConsultancyServicesConstructionWorksBuilding Materialsand EquipmentModular BuildingSolutionsStart Date – May 2017End Date - Nov 2021Start Date – Dec 2019End Date - Dec 2026Start Date – May 2019End Date - Oct 2021Start Date – July 2019End Date - April 2023 Project Management Architectural Services Cost ManagementServices Civil & Structural Eng. Building ServicesEng. EnvironmentalServices.8 Building Work & CivilEng. Construction Worksand AssociatedServices Residential High RiseAccommodation Maritime Airfields Demolition ConstructionManagementProcurement of: Heavy Materials Plumbing & Heating Electrical Equipment Timber and Joinery Hand & Power Tools Paints & Solvents Flooring & Tiles PPE Kitchens & Bathroom Plant & Equipment Fire Resistant Materials DesignManufactureDeliveryInstallationHealth Sector specificbuildings

Framework Alliance Contract 1 (FAC1)Construction Framework Agreement

ConstructionProfessionalServices [CPS]RM6165

The CPS TeamSteering BoardNoreen Winhall (Director Buildings)John Welch (Deputy Director Workplace)Stuart D’Henin (Assoc. Commercial Specialist)Key ExternalStakeholdersKey InternalStakeholdersCustomersSuppliersProfessional BodiesDigital TeamSourcing TeamCall off teamProject TeamSteve Walters (Category Lead)Bonnie Wheatley (Commercial Agreement Manager)Tom Davenport (Category Support)

Evolution of Construction Professional Services200920172021RM457RM3741RM6165Project Management and FullDesign Team ServicesProject Management and FullDesign Team Services[PMFDTS]Construction ProfessionalServices [CPS]4 Year Framework4 Year Framework4 Year Framework

CPS RM6165 VisionEnsure CG and theWPS have access to afull suiteof Constructionrelated professionalservicesStrengthening the UKeconomy througheffective policy &strategy deliveryFocus on ourcustomersSimple, Quick &Flexible CustomerJourneyBring togetherindustry with the enduser to promotecollaborative workingpracticesSimplificationFlexibilitySupports a sustainableindustry through socialvalue initiativesDrives SupplierPerformancePromotes innovation,efficiency & DeliveringValue for Money

RM6165 TimelinePre Market EngagementOJEU PublishedOct 2020June 2020AwardFeb 2021Jan 2021Internal GovernanceNov 2021July 2021Evaluation.4 week tenderperiod.All dates are indicative onlyGo Live

Legacy and Forecast Spend200920172021RM457RM3741RM6165 83m PA 130m PA*c 250m PA** Forecast

PMFDTS RM3741 Customer BaseCentral GovernmentWider Public Opportunity60%40%SpendSpendCustomer Experience Directorate (CXD)

RM6165ConstructionProfessionalServices (CPS)FrameworkFeatures

Initial proposed RM6165 lot structure (Nov 2019)Initial CPS Lot structure proposal which was presented to awide range of customers and suppliers during earlier roundsof customer engagement Nov 2019.

Feedback Minor & Major Lot with Valuebanded threshold Multi Discipline Lot SeparateDiscipline specific Lots Introduction of Energy Lot Introduction of InternationalLot Introduction of EnvironmentalLot Introduces complexity [Additional lots to manage & rules oflot engagement difficult to define]Difficult to determine optimum value bandClear customer requirement for a multi discipline lot based onhistoric spendSpecific discipline may be underutilised based on nature of customercall offsSpecific Discipline lots enable more specialist suppliersCustomer need for market focus experience Overlap with other CCS Energy offeringEnergy related consultancy services can be included inother multi discipline offerings Clear customer requirement to offer [multi discipline]overseas capability Customer requirement to have access to specialistenvironmental consultancy servicesProvides focus on Carbon Neutral Agenda

CPS RM6165 Emerging Lot StructureProject management and full design team services across the entire project lopmentConceptualPlanningInternationalHigh RiseDefenceOverseasProjectManagementServicesHigh RiseDesign ( anagementConsultancy

Additional Consultancy Opportunities amic Procurement System- Under Review Procure wide range of services inflexible marketsRequirements that can be fulfilled bysmall suppliers.Suppliers are able to apply to join atany pointUnlimited numbers of suppliers andunrestricted access to smallersuppliersSeparate market engagement to follow(dates to be advised)Framework Measures Promote SME usage at sub tiers of thesupply chain during framework lifeAllow Consortia & Joint Ventures toenable the option of groups of SMEs towork together

Price Model / Mechanism RM6165RateCard Hourly & Day ratesPer Defined Core DisciplineDefined Grades‘All inclusive’ MaximumRatesRegional Adjustment%RateCardProjectFee Fixed % Aligned to RIBAwork stagesMaximum FeeProcurement Type optionsRegional VariationProject Complexity Hourly & Day ratesPer Defined DisciplineDefined Grades/ExperienceT&S ExcludedNational Coverage

Basis of Design Summary RM6165Number of suppliers per lotLot 1 : No Maximum specified but Minimum Qualitythreshold at ITT will determine #For all other lots we expect 10-15 suppliers per lot.Lot CoverageUK National CoverageOverseas for International LotFW KPI’sTypically will include Supplier Compliance, Socialvalue, Carbon zero , Modern slavery - UnderReviewFW T&CSFramework Alliance Contract(Based on FAC-1)FW Length4 YearsEvaluationSelection stage will be based on CCS proposedpre-qualification process alignedwith PAS91 (common assessmentstandard)

Basis of Design Summary RM6165Call off Contract T&CsMultiple forms at call off - NEC4 PSC, CCSStandard, FAC1, JCT, PPC200 - UnderreviewLimits of LiabilityUnder ReviewPrice Model / MechanismTime Charge Rates (Flexible Call offoptions inc Target Cost, Reimbursable,Fixed Price)FW rate IndexationFixed for initial period (2 years)Applicable standardsISO Standards, Cyber Essentials – UnderreviewLevy1%PQQ and ITT stage will aim to reduce admin of bidding for multiple lots andsupport consistent and efficient evaluation process

Next StepsFurther refined and focussed engagement to continue through toOctober 2020 with Customers, Suppliers and Professional BodiesInternal CCS governance Oct 2020*Planned OJEU Publication Jan 2021*Q&A / FAQ published and follow up online survey issued*Dates are indicative only

Thank you!CPS@crowncommercial.gov.ukPlease continue to check our websitefor further 5

11th August 2020 Please ensure your microphone is muted throughout the presentation The slides today will be presented with the opportunity for the audience to post questions during the presentation using the chat function. Questions submitted through the chat function will be recorded and responses will be provided after the event. Responses will be posted on CCS website page and will be .