Crown Commercial Services Next-Gen Facilities Management Services framework

CCS FM Framework - RM6232 FM & Workplace Services the one FM opportunity you cannot miss!

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. 

RM 6232 FM & Workplace Services Procurement Timeline  
  • 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

Scope of Services

KPIs & Performance

TUPE

Three approaches, based on differing levels of liability transfer:

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

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

Lot 1b

Lot 1c

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.

How Can Baachu support your CCS FM Needs?

CCS FM Market Place Procurement Timeline
  • Out to Tender – Oct 21
  • Tender Submission Deadline – Dec 21
  • Award – March 22
  • Framework Go-Live – July 22
We have secured multiple round tables with CCS FM procurement team (available only to Rain Members)
 
To assist suppliers bidding to enter the framework, Baachu team will be running CCS FM framework readiness training programmes over summer. Details to follow
 
We have also build a team of 60 Proposal Writers, Estimators, Researchers, Financial Analysts and Technical SMEs to help support our RAIN members and strategic clients to set the foundations to bid for CCS FM framework.  We will be allocating our resources on a first come first serve basis. Drop us a line if you would like to discuss your support – ros@baachu.com

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Facilities Management –  M&A Scenario in 2021

Do you know that Transaction Management Companies is on the top end of the FM value chain and with future of Workplace dilemma may companies are relying on these providers to help shape their real estate and workplace portfolio.

One of the main reason buyers take them on- board is cost savings. By hiring these providers, Clients save on lease costs, floor space, Op. Ex and setting up cost on management office. Also covid19 has demonstrated,  integration of FM and TM will improve performance and efficiency, i.e Real estate transaction management is one area where synergy with FM can be harnessed extensively and lead to profitable portfolio expansion for FM players. Interestingly, transaction management services also enables FM providers to tap into double digit profitability.

To know the Key Transaction Management Advisory Deals in the UK, Key players and their competitive landscape.

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