This pro-forma will assist Procuring Authorities to address STUC Staffing Protocol requirements regarding testing inclusion / exclusion of Soft FM provision from a NPD project (either pre OJEU or in procurement).
This pro-forma does not specifically cover the processes required to be in place to undertake soft FM inclusion / exclusion testing in procurement. Separate guidance should be sought. In completing the relevant pro-forma, Procuring Authorities may require to seek appropriate advisory input (technical, legal and financial).
Note, in certain sectors because of regulatory and accountability reasons, certain soft FM services should not be contemplated for transfer. If Procuring Authorities think that this is the case, they should discuss directly with the Directorate.
Pro-forma 1 - Exclusion Checklist Pre Procurement
| Ref | Review Element | Procuring Authority Response (supporting information, calculations and spreadsheets to be provided) |
| 1 | How was soft FM dealt with and what assumptions were applied at the option appraisal stage of the project (e.g. at OBC / prior to selection of the preferred option) Has external assistance been sought in relation to the soft FM inclusion / exclusion assessment (quantitative and risk issues) Please confirm that the ultimate decision to include / exclude soft FM services has been made by the Procuring Authority and that the Procuring Authority is accountable for any subsequent VFM and market attractiveness impact on the project. | |
| 2 | Detail the scope of soft FM services being considered - include a basic list Explain any soft FM service not considered for inclusion and detail why. Give details - including expiry date - of any current soft FM service contracts (e.g. outsourced contracts). | |
| 3 | 1. Within the quantitative analysis undertaken, confirm the basis of pricing of the:- i. projected in house soft FM costs (e.g. Procuring Authority estimates / DLO etc) ii. projected NPD soft FM costs (e.g. are they based on NPD market benchmarks provided by technical advisers) In both cases state whether these are inclusive of risk iii. allocation of overhead for in house pricing (insurance, head office, finance etc) 2. Further to the above, are the in house soft FM costs and the NPD soft FM costs priced to deliver the exact same level of service (i.e. based on an NPD output specification and a proactive response and rectification criteria with a strict monitoring and deduction regime contractually enforced by a payment mechanism) 3. Has the full cost (i.e. direct cost and any related overhead) of in house management of soft FM delivery been costed and included in the assessment? Please provide details of the overhead allocation methodology. 4. How is the fact that in an NPD soft FM services can be benchmarked being treated in the financial assessment of: i. the NPD which includes soft FM ii. the in house bid 5. What implications were addressed in respect of the duration of the NPD (inclusive of Soft FM) being circa 30 years in duration vs a Service Level Agreement for in house provision which will be typically for a shorter period (i.e. detail Best Value Note pricing implications of benchmarking and varying agreement periods should be included in the quantitative information below. 6. Please provide details of any anticipated difference in other NPD costs (outside Soft FM) arising from different Soft FM provision options. 7. How will / how have different pension arrangements and regimes been assessed | |
| 4 | Please provide the following financial details of base costs (including in house soft FM delivery and management):- | |
| i. per annum cost of individual soft FM services costs (exclusive of risk) for in house provision and cost per square metre / unit etc of individual services ii. whole life cost of soft FM services costs (exclusive of risk) for in house provision iii. per annum cost of individual soft FM services costs (exclusive of risk) for NPD and cost per square metre of individual services iv. whole life cost of soft FM services costs (exclusive of risk) for NPD | ||
| 5 | Please provide the following financial details of risk costs directly attributable to soft FM:- i. per annum risk cost of individual soft FM services costs for in house provision ii. whole life risk cost of soft FM services costs for in house provision iii. per annum risk cost of individual soft FM services costs for NPD | |
| 6 | What is the total cost of all transferred risk to the NPD operator: i. when soft FM is included in the NPD ii. when soft FM is not included in the NPD Both to be presented in NPV terms | |
| 7 | What is the total cost of Procuring Authority retained soft FM risk under i. the in house provision of soft FM services ii. the inclusion of soft FM services in the NPD Both to be presented in NPV terms | |
| 8 | What is the total cost of transferred risk to the NPD operator and what is the value of retained risk by the Procuring Authority under i. in-house provision of soft FM services ii. NPD provision of soft FM services Both to be presented in NPV terms Note - in relation to reference questions 4, 5 and 6, it is expected that the different cost bases between in house and NPD soft FM provision will drive different risk values (for example the NPD base cost will reflect that a stringent payment mechanism is in place). | |
| 9 | Detail the extent of consideration of risk pricing issues related to soft FM inclusion / exclusion: | |
| - what issues were raised and what value is attached to interface risk (e.g. design and operational issues) of the NPD bid with soft FM included - what issues were raised and what value is attached to the interface risk (e.g. design and construction being distinct from operation) of the NPD bid when soft FM is excluded (therefore public sector operation of services in NPD operators facilities over the life of the contract) - did the external advisers to the project risk adjust in house bid prices | ||
| 10 | What is the overall impact on VFM. Please detail: i. NPD NPV (inclusive of risk) - soft FM inclusion ii. CPAM NPV (inclusive of risk) - soft FM inclusion iii. NPD NPV (inclusive of risk) - in house soft FM provision iv. CPAM NPV (inclusive of risk) - assuming in house soft FM provision v. NPD NPV (inclusive of risk) - in house soft FM provision plus retained cost of soft FM and related retained risk (separately detailed) vi. CPAM NPV (inclusive of risk) - assuming in house soft FM provision plus retained cost of soft FM and related retained risk (separately detailed) | |
| 11 | Review of qualitative factors How will exclusion of soft FM impact: • Viability • Desirability • Achievability • Wider VfM factors - consideration of differential impact on programme from inclusion / exclusion - consideration of differential impact of single point accountability from inclusion / exclusion | |
| 12 | What is the view of the market? Provide evidence of the canvassing of bidders - specifically, views should be sought from active NPD consortia in the sector as to the attractiveness of the project (not withstanding any market capacity issues) with soft FM included or excluded and provided by the in house team |