ProCure2020(P2020) Design and Construction Framework for England Webinar
"Welcome to the ProCure2020(P2020) Design and Construction Framework for England Webinar on 17 January 2020. Learn about the key areas, procurement timetable, feedback collection, and more. Get insights into the new framework and contribute your thoughts. Stay updated on potential risks and innovative solutions."
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Presentation Transcript
Welcome to the Industry Webinar New ProCure2020(P2020) Design and Construction Framework for England 17 January 2020
Webinar - Presentation/Questions and Answers Presentation slides used will be shared directly, following completion of the Webinar The audience has the opportunity to post questions during the presentation using the chat function and a record kept of them Responses to questions submitted using the chat function will be provided after the webinar Responses to questions will be posted on P2020 section of P22 website (www.procure22.nhs.uk) and will be anonymous If you have further questions after the Webinar closes please send these to the following email address: p2020@dhsc.gov.uk 2
Todays Presenters & Agenda Name Position DHSC, Head of Construction Procurement Director of NHS Estates, NHS England - Improvement Session Cliff Jones Objectives and Project Background The Framework of Choice by the NHS in England Simon Corben Andrew Mitchell P22 Implementation Advisor Proposed Lot Structure Key Features, Benefits and Outcomes Commercial, Pricing and Contractual Approach Graham Bell P22 Implementation Advisor David Low P22 Implementation Advisor P22 Policy Support & Business Manager Procurement Process and Procurement Time Mike Hassell DHSC, Head of Construction Procurement Framework Funding Model and Questions/Supplier Questionnaire Cliff Jones 3
Webinar Objectives and Project Background Setting the scene Cliff Jones
Webinar Objectives Provide an overview of the proposals of key areas of the new P2020 Framework eg. : benefits lot structure pricing structure scope commercial model Provide an overview the procurement timetable for P2020 Framework Openly and transparently share the design of the new framework and stimulate comments/ feedback/questions on it Obtain feedback on innovative solutions from suppliers for consideration Obtain feedback on any potential risks/issues and viability of proposals Information provided during the Webinar is currently in draft format and subject to change or amendment prior to the issue of the OJEU Contract Notice 5
Background to New P2020 Framework The existing ProCure22 (P22) is a multi-supplier Capital Design & Construction Framework run by the Department of Health and Social Care for the NHS and is due to expire at the end of September 2020 The replacement ProCure2020 (P2020) framework is to be in place and operational by October 2020 NHS England and NHS Improvement will be working closely with the Framework Delivery Team in the DHSC to put the new framework in place P2020 will be available for all health and social care construction and refurbishment schemes The length of the framework shall be 6 years from the outset The current estimated framework value is 20 billion Open procurement route will be utilised to put the framework in place (Selection Questionnaire and Award) P2020 will be based on Strategic and Project Collaboration to deliver Healthcare Solutions (Solutions Providers) 6
The Framework of Choice by the NHS in England Simon Corben
Lot Structure, Key Features, Benefits & Outcomes Andrew Mitchell and Graham Bell
P2020 Framework Lot Structure The framework will be divided into lots as shown in the following diagrams. By way of background, an options appraisal was undertaken in support of the lotting structure and examined the relative advantages and disadvantages of a range of delivery model options (including of course, the current way in which the service is delivered). The lotting rationale was driven by a number of factors, subsequently feeding into the evaluation criteria such as: Geographical difficulties associated with a national provision for smaller value projects Regional commercial variations such as cost indexation A procurement approach which does not create barriers to SME s A robust mechanism for delivering larger value projects such as those identified within the Health Infrastructure Plan for transformational and new build projects 9
P2020 Framework Lot Structure Desirability the degree to which each option might meet the strategic objectives and priorities of stakeholders (NHS E/I, NHS/DHSC) by taking account of the balanced scorecard (PPN 09/16) and Social Value themes such as: More Local people in employment Ethical Procurement and Social Value embedded within the supply chain Sustainable travel Environmental impact and Air pollution reduced Improved resource efficiency around Local labour Reduced travel 10
Lot 1 Regional Lots aligned to NHS E/I 0m - 24.99m North of England (North West, North East & Yorkshire) Midlands & East of England South of England (South East & South West) London 11
Lot 2 National Lot 25m - 99.99m 12
Lot 3 National Lot 100m + 13
P2020 Framework - Key Features Not merely a Design and Build Contractor A Healthcare Solutions provider that identifies and delivers Healthcare Solutions who manages an integrated supply chain that can collaborate with the DHSC and NHS (and Social Care) Clients that delivers: Master/Strategic Planning Business Cases Design Construction (New Build or Refurbishment) Minor Works Programmes FM or other specialist advice to support Master/Strategic Planning, Design and Construction decisions Capital and operational cost efficiency savings for the NHS (and Social Care Clients) whilst providing the above PSCPs and their Supply Chains understanding of current and developing DHSC Policy (and Guidance) and healthcare delivery is essential to support the above 14
P2020 Key Benefits P2020 will build on the success of P22 and will provide the following key benefits: Our aim with NHS E/I is for P2020 to be the framework of choice for the NHS, Social Care Sector and Contractors alike Significant changes proposed from P22 including the addition of Regional Lots Rapid access to high quality Principal Supply Chain Partners (PSCP s) and their supply chains with proven track records of delivery across the works and service categories in the Health Sector End to end support and a quality assured process. Monthly project reporting and monitoring A single consistent method for the delivery of a rolling programme of funded individual capital projects and schemes Mini-Competition and Direct Award Updated and clear call-off procedures, templates and guidance 15
P2020 Framework Key Benefits Standard components and repeatable rooms Flexibility in the use of target cost and lump sum contracts using NEC 4 Client/PSCP gain share mechanism Free Training in the use of the Framework and call off process Open book accounting Challenging KPI s including social value targets and targeted spend with SME s Latest Fair and Prompt Payment Provisions Minimum standards for environment and sustainability Building Information Modelling and CDM compliance 16
P2020 Framework - Key Outcomes Provide excellent customer service and offer VFM Provide quality that exceeds national http://www.aphcomputers.co.uk/wp-content/uploads/2013/06/qualitycontrol.jpg standards Prevent waste Achieve Savings 17
P2020 Framework Framework Agreement and Call Off Contracts Bespoke P2020 Framework Agreement and Schedules in plain English Clients can choose from the NEC 4 contract identified on the next slide. Clients will identify their choice of NEC 4 contract at the commencement of any call-offs under the framework The NEC 4 has been selected as this complies with the Infrastructure and Projects Authority Common Minimum Standards for Construction (CMS) March 2017 The NEC 4 contract is used through design, construction and post completion. The contract develops through the project stages to provide a comprehensive single agreement NEC 4 Z clauses will be used to provide specific requirements of clients. The number of Z Clauses will be kept to the minimum with due regard to IPA/CCS standard set of boilerplate amendments Bidders processes, systems and procedures relevant to the NEC 4 contract will be evaluated within the Invitation to Tender and used in subsequent call-off contracts where relevant 19
NEC4 Engineering and Construction Contract (ECC) Call-Off Contract Options NEC Contract NEC 4 ECC Option A: priced contract with activity schedule NEC 4 ECC Option C: target contract with activity schedule NEC 4 Engineering and Construction Short Contract Consideration is currently being given to the following options depending on NHS E/I and NHS client demand: NEC 4 ECC Option B: priced contract with bill of quantities NEC 4 ECC Option D: target contract with bill of quantities NEC 4 ECC Option E: cost reimbursement contract 20
P2020 Framework Pricing Mechanism Priced Element Framework Award Call - Off PSCPs can offer a reduction to the fee % submitted at framework award PSCPs can offer a reduction to the hourly rates submitted at framework award Based on contract options and lot, regional pricing within national lots 1. NEC 4 fee percentages Bidders will be able to price for regional variation within national lots 2. Hourly design rates for PSCPs and PSCMs 3. Preconstruction Services (PSCP/PSCM constructor) 4. Design Services (PSCM Designers) % of forecast project value and/or priced activity schedule based on RIBA Plan of Works stages and defined Scope of Service Priced activity schedule based on programme Priced Activity Schedule based on PSCP programme 5. Site Management 21
P2020 Framework Typical Questions & Answers P2020 Commercial & Contract Questions We welcome feedback on any part of the commercial and contractual proposals but have included specific questions in the supplier questionnaire relating to: How to allow for regional pricing within lots Any items which should be excluded from the pricing of the NEC fee % Suggestions on simplifying the agreement of monetary values for contractors liabilities on call-off contracts Alternative suggestions on the contract choice through the relevant project stages 22
Procurement process and timetable under Open Procedure Mike Hassell
P2020 Framework Procurement Process and Outline Timetable The Open Procedure procurement route will be utilised to put the framework in place (Selection Questionnaire (SQ) and Award) based on pre-determined criteria Between 6-10 Suppliers for each Region and National Lot SQ based PAS 91 Question Set Relevant experience will be required as part of the SQ process for each Lot Minimum turnover requirements as set in PCR 2015 No restrictions on the number of Lots that bidders may bid for or be appointed to Quality/Price ratio of 60/40 or 70/30 for award of the framework Post tender interviews will not be held 24
P2020 Framework Procurement Process and Outline Timetable We will be expecting bidders to demonstrate amongst other things: Commitment to social value and support for national and local community benefits initiatives Real continuous improvement contributions Strategic relationships Active contribution to framework charter Pro-active benchmarking contributions Commitment to apply open book principles throughout the whole supply chain Commitment to resolve contractual disputes by negotiation rather than resorting to more formal proceedings Share information and best practice Bidders processes, systems and procedures relevant to the NEC 4 contract 25
P2020 Framework - High Level Procurement Process Stage 1 (Market Engagement) Market Engagement (conversation with suppliers on proposed Procurement Strategy for the new Framework) Stage 2 (Procurement Strategy) Sourcing Strategy Tender documentation preparation Stage 3 (Procurement Process) Launch of invitation to tender (ITT) Evaluation of tenders Stage 4 (Framework Award) Advise suppliers of outcome Framework preparation Sign Framework Framework Mobilisation Stage 5 (Framework Management) Manage Framework to deliver outcomes Individual call off contracts under the Framework by approved Contracting Authorities 26
P2020 Framework - Indicative Procurement Timetable Set out in the slide below are the key events in the procurement timetable. This is intended as a guide and whilst the Department does not intend to depart from the timetable it reserves the right to do so at any stage Indicative Target Date Activity Stage OJEU Contract Notice and Procurement Documents published 13th March 2020 3 Tender Response Deadline 24th April 2020 3 Successful/Unsuccessful Suppliers informed 24th July 2020 4 August/September 2020 Mobilisation Period 4 Framework Commencement 1st October 2020 5 27
Framework Funding Model Cliff Jones
P2020 Framework - DHSC Funding Model DHSC operating and framework development costs for the P2020 Framework shall be funded by charging Suppliers admitted to the Framework a Management Levy which is allowed under PCR 2015 The indicative charging mechanism currently under consideration is outlined below for illustrative purposes only: 10 K - 15 K subscription paid annually 0.20% to 0.50% Project Levy included in tendered OHP paid at pre-determined stages during the project contract period A decision on the actual charging mechanism will be taken before the issue of the ITT Framework initiatives will be funded from the revenue generated from the Management Levy in addition to other defined operating costs VAT recovery advisory service will continue to be provided but will not be funded from the Management Levy 29
P2020 Framework - Questions and Industry Survey Please complete and return the Industry Survey by 24th January 2010 Please note, any questions raised in the survey will not be answered directly. If you with to submit questions please use the chat function during this webinar or the P2020 email address. Your feedback, thoughts and ideas on the proposed structure and features of the new framework are important to us Your thoughts and ideas will be developed into workable solutions by the project team If you wish to submit further questions after the Webinar please submit these directly to p2020@dhsc.gov.uk by 24th January 2020 All Questions will be reviewed and responses will be provided by 31st January 2020 Thank you for your time today 30
