Facilities management services

Latest news

6 April 2018 - Facilities management services contract announcement

What's covered

Agencies should use this contract if their property portfolio is primarily non-operational. This is defined as:

• Office accommodation: Areas used primarily for undertaking desk or administration focussed activities and associated facilities and amenities such as meeting spaces, storage, kitchen and breakout, amenities, circulation and reception areas.
• Public interface areas: Areas used primarily for face to face interactions with the clients and the public for the purposes of delivering government services.

The contract is not intended to be used solely for operational areas, however if a small proportion of an agency’s property portfolio is operational, facilities management services for this can also be included under this AoG solution.

The following services for reactive maintenance and planned preventive maintenance (including some minor works) are in scope.

Management services

• Facilities management help desk services
• Asset management services
• Operational resourcing
• Building compliance and IQP services
• Maintenance management system

Scope definitions

What's not covered

This contract is not intended to cover facilities management services for operational areas such as correctional facilities, educational facilities, or laboratories. 

The following services are also out of scope of the contract.

• Commercial cleaning and associated services
• Stand-alone asset management software products or systems
• Stand-alone helpdesk and call centre offerings
• Cafeteria and kitchenette supplies or catering services
• Cleaning/washroom equipment and materials (unless provided as part of a cleaning or hygiene service)
• Consultancy services
• Document destruction and document storage
• Energy (electricity and gas) supply 
• Fit out services for buildings (excluding minor works)
• Health and Safety related equipment and training (e.g. first aid, PPE, civil defence)
• Laundry equipment
• Meeting room technology, installation and support
• Security and associated services
• Vehicles and fleet management

How it works

Agencies will participate in this contract by completing a secondary procurement process with the providers on the panel. The contract provides sufficient scope and flexibility to allow each agency to define the facilities management services it specifically requires for its sites.

Facilities management – Government Property Group

Using this contract

Features and benefits

This contract provides agencies with flexible, quick and easy access to facilities management-related services through a clear contract framework, value for money arrangements and reliable, timely and consistent service delivery. Agencies will have opportunities for cost and non-cost efficiencies. The contract will be focused on continuous improvement through robust contract management, data gathering and benchmarking.

This contract aims to:

• Provide greater consistency in facilities management servicing across the government sector.
• Improve eligible agencies understanding of their asset base.
• Assist the move towards increased planned and preventative maintenance and a resultant reduction in the volume of reactive maintenance.

 Agencies will also benefit from:

• Integration of facilities management services to increase efficiency. Packaging services together allows opportunity cut costs overall and juggle fewer contractor relationships. 
• A robust contract management that will help to build relationships with providers that are consistent for each agency.
• Benchmarking information and quality reporting to ensure consistency of value and aid in measuring performance throughout the life of the contract.
• Participation from a wide range of businesses including sole traders, small to medium enterprises (SMEs) and large corporate bodies to support delivery through the panel suppliers.
• Standard purchasing models of facilities management services will ensure that consistency and quality is easier to measure.
• Evidenced spend and service history allowing for robust future planning.
• Improved mechanisms and processes for data gathering, recording and reporting into the Government Property Portal.

Savings and costs

Savings

Agencies who participate in the facilities management services contract don't need to go through a full procurement process of their own, which saves time, effort and cost.

Participating agencies can gain a number of efficiencies through the utilisation of best practice facilities management strategies e.g. asset life cycle management and the introduction of planned preventative maintenance methodologies and a reduction in both the costs and volume of reactive work.

We have negotiated favourable rates with the panel providers which will deliver agencies with savings against standard market rates. These savings can further be increased through a contestable secondary procurement process by individual agencies.

Participating agencies should expect savings of around 12.4% on reactive maintenance services, depending on the selected provider. This savings percentage is based on a comparison of proposed AoG and non-AoG rates for a range of specified technical reactive maintenance services. Providers were requested to provide both rates in their response to the RFP. The savings from the appointed providers ranged from 2.3% - 27.5%, with an average of 12.4%.

This information can be used to get a general sense of the immediate cost savings agencies can expect through use of the panel. The secondary procurement process allows for providers to submit lower rates for technical reactive maintenance services than specified in their proposals. This will act to ensure competitive pressure is maintained on pricing throughout the life of the AoG facilities management services solution. This is a key feature to ensure the projected financial benefits materialise.

Value-added services

Value-added services are the free or low-cost services offered by the providers that supplement a participating agency’s engagement with that provider.

All providers offer various value-added services. Participating agencies have the flexibility to engage these features as and when appropriate. Examples include:

• Dedicated 24 hour FM call centres
• Access to Industry forums and events
• Online workflow systems
• Agency workshops and information sessions

Further information can be found on the providers page.

Facilities management services providers

Costs

Most AoG contracts include an administration fee. This fee is a simple, effective and transparent way of recovering the cost of developing, sourcing, implementing and managing AoG contracts.

Rates in this contract include an administration fee of 1.5%.

Providers collect the administration fee and pass it on to MBIE - agencies don't need to make any payments to MBIE.