CCS FM Framework - RM6232 FM & Workplace Services the one FM opportunity you cannot miss!
Government, public and private sector teams put so much on the line – to create something of value for themselves, their community and the country. Behind every service there is a tender and colloboration. This article is my little part to demystify the largest FM tender for Tier 1, Tier 2, SME and third sector FM Service Providers and enable us to come together and kickstart a concerted effort to maintain and build on this – ‘Together’.
Disclaimer : Baachu CCS webinars and articles are independent training resources managed by Baachu for the FM industry.
As the market prepares itself for the Crown Commercial Services RM6232 FM & Workplace Services end 2021, let me rewind and detail the 2018 CCS FM Framework edition so that you can ascertain if the 2022 FM framework is the way forward for you.
Most of you may already have registered for the upcoming ‘Crown Commercial Services’ (CCS) framework for FM procurement – RM6232 FM & Workplace Services. Even if you haven’t, we will help you understand the framework – what it holds for you, and the industry at large.
Before we delve deeper into the framework, it is vital that you ask yourself a few questions to ascertain why you may want to explore this opportunity:
- Are you already on the existing CCS FM framework?
- Are you a private FM provider looking to expand into the public sector?
- Is the UK public sector an important market for you?
- Are your existing public-sector clients looking to take the CCS route for contract renewals in the future?
If the answer to most of these questions is yes, then read on to understand what the new framework entails and how to ensure that you are well placed to be a part of the public sector FM supply chain of the future.
CCS - Background
In recent years, the UK Central Government has focused its efforts on reshaping public procurement through creation of Crown Commercial Services (CCS), centralised procurement vehicle, among other policy changes. The sector is thus witnessing a shift in procurement policies, guidelines and practices.
As the existing CCS framework agreement is due to expire in 2022, CCS initiated groundwork now with their supply engagement events to shape up its successor. With the new framework, CCS is aiming to address key concerns with the current framework, including – suppliers not viewing the government as a customer of choice, buyers concerned with inadequate competition and restrictions on buying options, etc.
The upcoming CCS framework is expected to cover c.60% of public sector contracts in the years to come. It will be used by public sector bodies such as central government departments, local authorities, schools, NHS, etc. So, if your organisation’s focus is the public sector market, the time is right for you to understand and prepare for this opportunity
The 2022 Next-Gen CCS FM framework - RM6232 FM & Workplace Services
The 2018 FM framework (RM3830) – was built on the performance and successes delivered by RM1056, while addressing the diverse needs of Central Government and Wider Public Sector.
Government Commercial Function (GCF) and Cabinet Office is introducing changes based on market feedback to ensure the new procurement route RM6232 FM & Workplace Services is easy to use, encourages collaboration, doesn’t restrict buying options for customers and creates opportunity for greater localised procurement.
- Out to Tender – Oct 21
- Tender Submission Deadline – Dec 21
- Award – March 22
- Framework Go-Live – July 22
What will be in FM 6232 FM Framework?
2018 CCS Next Gen FM – What was new?
Among a host of other improvisations, the framework will feature a
- Fit-for-purpose commercial model suitable for large and small packages
- Improved handling of TUPE data transfer
- Revised service lot categorization direct award for simple
- Low value requirements (mandatory services only) on tenders up to £1 Mn.
The framework was operated electronically – through a bespoke portal, buyers will be presented with a number of mandatory stage-gates designed to filter out non-compliant suppliers.
2018 Framework design and structure – Key highlights
Scope of Services
- Comprehensive FM service offering for:
- Hard and Soft FM Requirements
- Security Requirements
- CAFM / Integrator Requirements
- Linen & Laundry Requirements
- Defence specific FM requirements where needed
- Mandatory (Core) and Non-Mandatory (non-core) services
Scope of Services
- Anticipated pricing models are fixed price, target cost and Reimbursable (schedule of rates)
- Set Rates on a variable Unit of Measure basis will form basis for all pricing models, e.g. GIA, NIA, weight, time, per item etc.
- Rates will be rolled up, all-inclusive prices e.g. labour, materials, consumables etc.
- 1% CCS levy on all mini competitions which will need to be built in at pricing stage
KPIs & Performance
- Fewer, more meaningful KPIs related to service delivery
- 10 core KPI’s with additional level 2 KPIs
- Variable at risk element at customer discretion
TUPE
Three approaches, based on differing levels of liability transfer:
- TUPE Fixed Percentage tendered at framework (for direct award), based on a full risk transfer of all liability (up to a threshold) applied to the contract value at award
- TUPE risk premium based on actual TUPE data
- TUPE fixed premium based on an annual monetary value applied to the contract
The framework also supported government’s policy agenda for SMEs, apprentices and growth, by expanding the evaluation criteria to include social value and innovation considerations – for up to 5% of the overall quality scores.
CCS Framework – Call for action to providers
As the 2022 new RM6232 FM & Workplace Services OJEU notice date closes in, it is crucial for FM providers to decide their stance on the framework and chalk out necessary next steps.
If you are an established provider with significant public sector presence, keep in mind that increased government emphasis on central procurement will drive buyers to make greater use of the framework in the coming years.
Further, the focus on SME and local provider inclusion will necessitate you to look for the right partner organisations for bidding – incorporating social value and innovation in your bidding proposition.
As the government targets an estimated £2 Bn of annual spend through the new framework, established public FM providers risk losing out their market share to competitors if they are not on the framework.
Baachu UK FM Growth View
To enable FM providers to gain a bigger pie of the FM market, we conducted market sizing exercise and also researched the opportunities in the industry. Baachu team estimates sizeable upcoming opportunities in the UK public sector FM market over the next three years, with upwards of 800 contracts worth over £9 Bn in TCV will be outsourced by 2022-24. Our market sizing exercise estimates over 80% of the FM market is outsourced
How many these will be coming through CCS framework?
We don’t know but we have built a comprehensive database of
upcoming Public and Private sector FM opportunities over the
next five years, across 13 public and 11 private sectors. You can access to the 6500+ public sector opportunities at RAIN – Facilities Services Sales Pipeline Tool – (baachurain.com)
From our RAIN public-sector list, we know there are
- Around 2500 opportunities with estimated contract value between £0 - £7m (Lot 1a)
- Over 260 opportunities with estimated contract value between £7m - £50m (Lot 1b)
- Around 100 opportunities with estimated contract value above £50m (Lot 1c)
- Around 3600 opportunities with no contract values available On the other hand, if a commoditised, low margin and competitive public sector FM market is not your focus, either because you’ve had a bad experience with the existing CCS framework, you can explore over 2000 private sector outsourced FM projects at www.baachurain.com.
Concerns raised and discussed regarding 2018 Lot 1 procurement
General: The framework provides little scope for differentiation in the market and reduces FM, a complex service provision, to commodity pricing.
SME and Social Value: Very few specialist SMEs will be able to demonstrate more than one mandatory Service and this will be a barrier for their participation to lot 1.
Pricing: There are too many unknown variables to provide an accurate value for price per m2.
Building types and building GIA: Sample buildings provided later in the procurement lacked granular details
Legal Terms and Conditions
2018 Lot 1 Winners
Lot 1a
- BAM FM Ltd.
- Bellrock Facilities Management
- CBRE
- Compass Contract Services (UK) Ltd
- Crown Flooring Limited
- Emtec Facilities Services
- Engie FM
- FES
- Graham Asset Management
- Imtech Inviron
- Integral UK Limited
- ISS Mediclean Limited
- Keysource Ltd
- MC Construction Co. Ltd. (MC Facilities Services)
- Mitie Technical Facilities Management
- Mountjoy
- NG Bailey Facilities Services
- Pareto Facilities Management Ltd
- Powertest Limited
- Robertson Facilities Management Limited
- Rolfe Contracting Limited
- SCL Managed Services Limited
- Servest Arthur McKay
- SES (Engineering Services Ltd) - Wates Smartspace FM
- Smart Solutions (Recruitment ) Ltd
- Space Solutions (Scotland) Limited
- VINCI Construction UK Ltd
Lot 1b
- Amey Community Ltd
- BAM FM Ltd
- Bellrock Facilities Management
- Bouygues Energies & Services FM UK LTD
- CBRE
- Compass Contract Services (UK) Ltd
- Ecolog International
- EMCOR UK
- Emtec Facilities Services
- Engie FM
- Engie Services
- G4S Facilities Management Ltd
- Graham Asset Management
- Integral UK Limited
- Interserve (Facilities Management) Ltd
- ISS Facilities Services Ltd
- ISS Mediclean Limited
- KIER Workplace Services
- Mace Macro
- MEARS
- Mitie Facilities Services Ltd
- Mountjoy
- NG Bailey Facilities Services
- NOONAN
- OCS Group UK Ltd
- Pareto Facilities Management Ltd
- Robertson Facilities Management Limited
- Salisbury Workplace Services Ltd
- Serco Ltd
- Servest Arthur McKay
- Servest Group Ltd
- SES (Engineering Services Ltd) - Wates Smartspace FM
- Skanska Construction UK Limited
- Sodexo
- VINCI Construction UK Ltd
Lot 1c
- Amey Community Ltd
- Bouygues Energies & Services FM UK LTD
- Ecolog International
- EMCOR UK
- Engie Services
- G4S Facilities Management Ltd
- Interserve (Facilities Management) Ltd
- ISS Facilities Services Ltd
- JOHN GRAHAM HOLDINGS
- KIER Workplace Services
- Mace Macro
- MEARS
- Mitie Facilities Services Ltd
- NOONAN
- OCS Group UK Ltd
- Powertest Limited
- Salisbury Workplace Services Ltd
- Serco Ltd
- Servest Group Ltd
- Skanska Construction UK Limited
- Sodexo
Baachu 2018 Lot 1 Comments
1. Suppliers can only be in two lots
Interesting to note few providers used two legal entities to be in all three lots
2. CCS marketed next generation framework to be more SME friendly expected 70% supplier to be SMEs
Less success as only 27 suppliers shortlisted for Lot1a, around 10
suppliers are SMEs
3. All suppliers (excl. Carilion) in RMS 1056 - previous FM framework managed to secure a place in new FM Marketplace (RM3830)
4. None of the BMAS (Building Materials and Associated Services) framework suppliers got shortlisted in the new FM framework
5. Lot1 Framework was expected to Go live in May but going live in August
Reach out to me at baskar@baachu.com, and my team and I will be glad to support your specific growth requirements, just as we assist numerous local, national and international business services companies.