INDEPENDENT MARKET TESTING AND OPERATIONAL EVALUATION OF GROUNDS MAINTENANCE SERVICE PROVISION. Chris Frake, APSE solutions associate
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1 INDEPENDENT MARKET TESTING AND OPERATIONAL EVALUATION OF GROUNDS MAINTENANCE SERVICE PROVISION Chris Frake, APSE solutions associate
2 GROUNDS MAINTENANCE
3 Detailed Market Testing process involves independent assessment of: Competitiveness Optimum resource requirements Operational performance service delivery
4 Market testing current key issues Lack of meaningful/accurate financial information relevant to service provision Lack of baseline operational data essential to identify resource requirements Impact of single status, i.e. sickness levels, reduction in working hours Scale of rechargeable costs to the service
5 Market testing Fewer number of grounds maintenance contracts exposed to open competition since C.C.T affecting: The availability of market schedule of rate costs for cyclical operations Market testing of in house S.O.R. Prices with benchmark cost is effective but not conclusive
6 RATES COMPARISON Code Description UOM S.M.V. S.M.V. inc allowance Cost Compare S.M.V. Compare Cost AMD3 Rake Beds And Remove Leaves 10 sq m ASM1 Apply Residual Weedkiller To Hard Areas 100 sq m BGO1 Brush Bowls Green 1 green BGO1 Mow Bowling Green x 3/Week 1 green BGO1 Roll Bowling Green 1 green BGO1 Scarify Bowls Green 1 green BGO1 Sisis Spike Bowls Green 1 green BPG1 Apply Selective Herbicide 100 sq m BPG1 Cut And Collect Putting Green 100 sq m BPG1 Cut Grass Strimming 100 sq m BPG1 Remove Leaves From Lawn 100 sq m BPG2 Cut Grass - Compact 100 sq m BPG2 Cut Grass - Pedestrian 100 sq m BPSB Prune Selective Shrubs (Summer) 10 sq m BPSB Prune Selective Shrubs (Winter) 10 sq m CAO1 Edge With Half Moon 10 lm CAO1 Harrow Area 100 sq m CAO1 Mow Grass Central Area 100 sq m CAO1 Spike Area 100 sq m CAO1 Trim With Long Handled Shears 10 lm CBO1 Remove Leaves 10 sq m CKG1 Roll Wicket Prior To Match 1 wicket CPT1 Pick Up Litter / Debris 100 sq m
7 MARKET TESTING The preferred approach is to establish your own S.O.R. Cost base for each activity and subsequent overall lump sum costs using: Bills of quantity Work specification / indicative frequencies Competitive unit cost, i.e. Hourly rate Productivity values for each activity
8 COST BASE RULE OF THUMB PRICE FOR A GROUNDS MAINTENANCE SERVICE 32K 34K PER OPERATIVE PER ANNUM COMPETITIVE UNIT COST BASE FOR GROUNDS MAINTENANCE SERVICES BETWEEN PER HOUR PLUS MATERIALS MAIN REASONS FOR EXCESSIVE HOURLY RATE COST: DOUBLE COUNTING OF HOLIDAY AND SICKNESS RECOVERY OR INCLUSION OF MATERIALS WITHIN HOURLY RATE COST INCLUSION OF CLIENT RELATED COSTS EXCLUSIVE OF RELEVANT INCOME NON INTRODUCTION OR MISAPPROPRIATE SEASONAL WORKING HOURS RESULTING IN: MACHINERY / EQUIPMENT UNDER UTILIZATION REQUIREMENT FOR ADDITIONAL SEASONAL STAFF
9 GROUNDS MAINTENANCE MACHINERY PROVISION ACCOUNTS FOR 18% - 22% OF TOTAL COST MOST GROUNDS MAINTENANCE SERVICES ARE GUILTY OF UNDER UTILIZING MACHINERY POOR UTILIZATION MANAGEMENT INEFFICIENT WORKING PRACTICES UNSATISFACTORY SEASONAL WORKING HOUR ARRANGEMENTS
10 ANNEXE I - SOR COSTING LABOUR RATE DESCRIPTION MEAS UOM NOV DEC FREQ YR SMV LABOUR /Occ MATLS /Occ RATE COST PER YEAR Conservation Areas 1Sm Tractor Mow 1Sm Strim Perimeter Lm Remove Arisings 1Sm Port Meadow Conservation Area 1Sm Tractor Mow and Remove Arisings 1Sm Low Maintenance / Rough areas 1Sm Rotary Mow 1Sm Strim Lm Half Moon 0.011Lm Maintain Amenity Open Space Grass 1Sq m Mow Amenity Grass 1Sm Strim Lm Apply Liquid Resid. Herb. To Fence Lines 0.075Sm Apply Liquid Resid. Herb. To Hedge Bases 0.002Lm Spot Treat W/- Resid Herb. To Gulleys Sm Half Moon Edge 0.3Lm
11 RESOURCE PROFILING EVALUATION OF OPTIMUM RESOURCE REQUIREMENTS FOCUSES UPON CYCLICAL GROUNDS MAINTENANCE OPERATIONS KEY STAGES EVALUATION OF THE OPERATING HOURS GENERATED BY ACTIVITY USING QUANTITY, METHOD OF OPERATION AND PRODUCTIVITY ESTABLISH MONTHLY WORK PATTERN, i.e. CUMULATIVE HOURS EVALUATE MOST APPROPRIATE SEASONAL WORKING HOUR ARRANGEMENTS AND OPTIMUM RESOURCE REQUIRMENTS RESOURCE / HOURS STUDY CAN BE USED TO DETERMINE WORK SCHEDULES
12 GROUNDS BOQ HOURS PER MONTH Description MeasUOM MAY JUN JUL AUG SEP OCT NOV DEC Rate Armory Close Annual Cost Alex Tennis Courts Amenity Area Sm Sports Sm Shrubs Standard 20.25Sm Dog Bins 2.00Item Litter x 2/wk Sm Removal Of Leaves x 3 occ Sm Tennis Court Grass Mtce 12.00Court Tennis Court Hard 6.00Court Angel Greyhound Meadow Grass Conservation Area Sm Amenity Area Sm Shrubs Standard Sm Dog Bins 1.00Item Litter x 2/wk Sm Removal Of Leaves x 3 occ Sm
13 GROUNDS BOQ HOURS PER MONTH MAY JUN JUL AUG SEP OCT NOV DEC Annual Description Meas UOM Rate Cost Grass Conservation Area Sm Amenity Area Sm Dog Bins 1Item Litter x 2/wk Sm Removal Of Leaves x 3 occ Sm Wolvercote Play Area (see Godstow) Litter x 3/Wk Sm Woodfarm Green Amenity Area Sm Shrubs Standard Sm Dog Bins 2Item Litter x 2/wk Sm Hedge Cutting Miscellaneous Maintain Hedges (Flail) 4 Sq m Maintain Hedges Sq m TOTALS ,084,282
14 SPECIMEN PRICE QUALITY TENDER EVALUATION The weighting system that will be applied is as follows: PRICE 60% or 600 points QUALITY 40% or 400 points
15 QUALITY EVALUATION CRITERIA The score for Quality will be determined from the following weighting: Management of the Contract 10% or 40 points Setting up of Service Provision 36% or 144 points Provision of the Service to include Resources & Methodology 26% or 104 points Quality Control Systems 4% or 16 points Training 4% or 16 points Health and Safety 5% or 20 points Policies and Procedure 5% or 20 points Exit Strategy 10% or 40 points Irrespective of price, all tenderers will have to meet a minimum quality threshold.
16 PRICE POINTS CONVERSION Having scored the weighted quality criteria, it will then be necessary to convert the tendered prices to allow a true balance of price and quality. The prices submitted will be scored and weighted by the Authority s Tender Management Evaluation Panel. The procedure adopted is outlined in the CIPFA Code of Practice for Compulsive Competition and is as follows: Tenders which are too low to be deemed credible or too high to be acceptable, will be eliminated. The mean (arithmetic average) price of the remaining tenders will be calculated. Half the points (300) will be awarded to the mean price. For prices below the mean, 2% of the total points (12) will be in addition for each 1% of the tender price above the mean. For prices above the mean, 2% of the total price points (12) will be deducted for each 1% of the tender price above the mean
17 ALLOWABLE COSTS Tender prices may be adjusted at the evaluation stage for prospective costs which include: Payments for the premature termination of leases, maintenance agreements and contracts for the purchase of goods for any staff to whom TUPE would not apply.
18 METHOD STATEMENT EXAMPLE 3.0 PROVISION OF THE SERVICE 104 POINTS Detailed account of how you propose to provide an appropriate level of service having regard to: 3.1 Resource proposals including Emergency Arrangements, Public Holiday Arrangements and Holiday and Sickness Cover, Seasonal Arrangements. (see Annexe I) 3.2 Proposed Methods of Work (see Annexe II) The Resource and Method statements should be completed as comprehensively as possible, in order that the priced Tender may be supported by evidence of managerial and technical and organisational capacity and capability. 3.3 Operational Hours Proposals (see Annexe III) 3.4 Organisational Arrangements for Receipts of Orders, Records and Maintenance. 3.5 Customer Care, Publicity and Advice. 3.6 Procedures for Dealing with Risks and Accidents.
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