INDEPENDENT MARKET TESTING AND OPERATIONAL EVALUATION OF GROUNDS MAINTENANCE SERVICE PROVISION Chris Frake, APSE solutions associate
GROUNDS MAINTENANCE
Detailed Market Testing process involves independent assessment of: Competitiveness Optimum resource requirements Operational performance service delivery
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
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
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 6 6.9 1.71 9.29 2.78 ASM1 Apply Residual Weedkiller To Hard Areas 100 sq m 5 6.25 1.55 9.45 3.56 BGO1 Brush Bowls Green 1 green 19 23.75 5.89 36.12 10.8 BGO1 Mow Bowling Green x 3/Week 1 green 65 81.25 20.14 81.9 24.5 BGO1 Roll Bowling Green 1 green 136 170 42.13 115.5 34.54 BGO1 Scarify Bowls Green 1 green 66 82.5 20.45 93.45 27.95 BGO1 Sisis Spike Bowls Green 1 green 89 111.25 27.57 103.95 31.09 BPG1 Apply Selective Herbicide 100 sq m 4 5 2.24 5.83 1.95 BPG1 Cut And Collect Putting Green 100 sq m 14.06 17.58 4.36 5.25 1.57 BPG1 Cut Grass Strimming 100 sq m 20.5 25.63 6.35 27.3 8.17 BPG1 Remove Leaves From Lawn 100 sq m 11.5 14.38 3.56 21 6.28 BPG2 Cut Grass - Compact 100 sq m 3.25 4.06 1.01 4.2 1.26 BPG2 Cut Grass - Pedestrian 100 sq m 11.25 14.06 3.48 8.72 2.6 BPSB Prune Selective Shrubs (Summer) 10 sq m 4 5 1.24 4.07 1.22 BPSB Prune Selective Shrubs (Winter) 10 sq m 7.5 9.38 2.32 8.75 2.61 CAO1 Edge With Half Moon 10 lm 5 6.25 1.55 5.88 1.76 CAO1 Harrow Area 100 sq m 1.1 1.38 0.38 0.33 0.09 CAO1 Mow Grass Central Area 100 sq m 2.7 3.38 0.84 3.05 0.9 CAO1 Spike Area 100 sq m 1.2 1.5 0.41 1.02 0.3 CAO1 Trim With Long Handled Shears 10 lm 3.5 4.38 1.09 4.94 1.48 CBO1 Remove Leaves 10 sq m 2 2.5 0.62 2.1 0.63 CKG1 Roll Wicket Prior To Match 1 wicket 60 75 18.59 66.6 19.91 CPT1 Pick Up Litter / Debris 100 sq m 1.75 2.19 0.54 0.26 0.07
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
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 18.00 18.75 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
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
ANNEXE I - SOR COSTING LABOUR RATE 17.41 DESCRIPTION MEAS UOM NOV DEC FREQ YR SMV LABOUR /Occ MATLS /Occ RATE COST PER YEAR Conservation Areas 1Sm Tractor Mow 1Sm 2 0.017 0.00 0.0049 0.01 Strim Perimeter 0.1121Lm 2 0.16 0.05 0.0464 0.01 Remove Arisings 1Sm 2 0.15 0.04 0.0435 0.09 Port Meadow Conservation Area 1Sm Tractor Mow and Remove Arisings 1Sm 2 0.011 0.00 0.0032 0.01 Low Maintenance / Rough areas 1Sm Rotary Mow 1Sm 4 0.013 0.00 0.0038 0.02 Strim 0.5988Lm 4 0.16 0.05 0.0464 0.11 Half Moon 0.011Lm 1 0.6 0.17 0.1741 0.00 Maintain Amenity Open Space Grass 1Sq m Mow Amenity Grass 1Sm 2 20 0.028 0.01 0.008125 0.16 Strim 0.0315Lm 4 0.16 0.05 0.0464 0.01 Apply Liquid Resid. Herb. To Fence Lines 0.075Sm 1 0.043 0.01 0.0038 0.0163 0.00 Apply Liquid Resid. Herb. To Hedge Bases 0.002Lm 1 0.042 0.01 0.0038 0.0160 0.00 Spot Treat W/- Resid Herb. To Gulleys 0.0266Sm 2 0.2 0.06 0.0642 0.1222 0.01 Half Moon Edge 0.3Lm 0.25 0.25 1 0.6 0.17 0.1741 0.05
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
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 2114.33Sm 2.79 2.49 2.49 2.67 2.49 2.49 3.56 1.59 0.2283 482.76 Sports 6478.22Sm 1.60 3.87 1.58 1.90 1.58 2.82 1.34 0.55 0.0518 335.29 Shrubs Standard 20.25Sm 0.23 0.23 0.23 0.23 0.23 0.23 0.24 0.24 2.1744 44.02 Dog Bins 2.00Item 3.40 3.40 3.40 3.40 3.40 3.40 3.40 3.40 355.16 710.33 Litter x 2/wk 8612.80Sm 3.98 3.98 3.98 3.98 3.98 3.98 3.98 3.98 0.0966 831.72 Removal Of Leaves x 3 occ 2153.20Sm 0.00 0.00 0.00 0.00 0.00 0.00 1.08 1.08 0.0261 56.23 120.8 105.2 107.0 153.8 Tennis Court Grass Mtce 12.00Court 0 0 0 99.00 0 86.00 0.00 0.00 1580.47 18965.63 Tennis Court Hard 6.00Court 15.50 15.00 15.50 15.50 15.00 4.50 0.00 0.00 320.35 1922.07 Angel Greyhound Meadow Grass Conservation Area 6177.85Sm 19.04 0.00 0.00 0.00 19.04 0.00 0.00 0.00 0.1073 663.04 Amenity Area 30806.29Sm 40.64 36.21 36.21 38.94 36.21 36.21 51.86 23.10 0.2283 7033.86 Shrubs Standard 566.51Sm 6.54 6.54 6.54 6.54 6.54 6.54 6.77 6.77 2.1744 1231.81 Dog Bins 1.00Item 1.70 1.70 1.70 1.70 1.70 1.70 1.70 1.70 355.16 355.16 Litter x 2/wk 37550.66Sm 17.36 17.36 17.36 17.36 17.36 17.36 17.36 17.36 0.0966 3626.17 Removal Of Leaves x 3 occ 9387.66Sm 0.00 0.00 0.00 0.00 0.00 0.00 4.69 4.69 0.0261 245.16
GROUNDS BOQ HOURS PER MONTH MAY JUN JUL AUG SEP OCT NOV DEC Annual Description Meas UOM Rate Cost Grass Conservation Area 186.73 Sm 0.58 0 0 0 0.58 0 0 0 0.1073 20.04 Amenity Area 597.17 Sm 0.79 0.7 0.7 0.75 0.7 0.7 1.01 0.45 0.2283 136.35 Dog Bins 1Item 1.7 1.7 1.7 1.7 1.7 1.7 1.7 1.7 355.16 355.16 Litter x 2/wk 783.9 Sm 0.36 0.36 0.36 0.36 0.36 0.36 0.36 0.36 0.0966 75.7 Removal Of Leaves x 3 occ 195.97 Sm 0 0 0 0 0 0 0.1 0.1 0.0261 5.12 Wolvercote Play Area (see Godstow) Litter x 3/Wk Sm 0 0 0 0 0 0 0 0 0.1449 0 Woodfarm Green Amenity Area 5847.17 Sm 7.71 6.87 6.87 7.39 6.87 6.87 9.84 4.39 0.2283 1335.06 Shrubs Standard 421.07 Sm 4.86 4.86 4.86 4.86 4.86 4.86 5.03 5.03 2.1744 915.57 Dog Bins 2Item 3.4 3.4 3.4 3.4 3.4 3.4 3.4 3.4 355.16 710.33 Litter x 2/wk 6268.25 Sm 2.9 2.9 2.9 2.9 2.9 2.9 2.9 2.9 0.0966 605.31 Hedge Cutting Miscellaneous 40641.3 Maintain Hedges (Flail) 4 Sq m 0 0 0 203.2 203.21 0 0 0 0.1741 7075.66 Maintain Hedges 1558.42 Sq m 19.48 19.48 0 0 19.48 19.48 0 0 0.8705 1356.6 TOTALS 6582 4939 4761 5221 6695 5449 5272 3701 1,084,282
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
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.
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
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.
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.