Decision details

Seeking approval to award the Tri-borough contract for Total Facilities Management for a fully-outsourced managed solution for corporate facilities management.

1.        That the Tri-Borough contract for the provision of TFM (“the Project Agreement”) to Amey Community Limited with the services commencing on 1 October 2013 for a period of 10 years (with an optional 3 year extension), be approved.

2.        That a London-wide Framework Agreement for the provision of facilities management services to Amey Community Limited for a period of four years, be approved.

3.        That the initial £2 million savings identified in the Business Case have been met and that the potential net savings over the life of the contract could now significantly exceed this, be noted.

4.        That the Bi-Borough Executive Director of Transport and Technical Services at H&F and RBKC in conjunction with the bi-borough Director of Law at H&F and RBKC, the Director of Corporate Property at RBKC and the WCC Strategic Director Housing Regeneration and Property with the Head of Legal Services to agree to any final amendments to the PA and FA deemed necessary and to conclude the PA and FA accordingly, be agreed.

5.        That the structure of the ICF at a net annual cost of £1.7 million to be funded from existing FM budgets, be approved.

6.        That the Royal Borough of Kensington and Chelsea be the host employer for the ICF, be approved.

7.        That the proposed high level Governance arrangements and principles of the Tri-Borough Inter-Authority Agreement, subject to any other report thought necessary at a later date, be approved

8.        That the Executive Director of Finance and Corporate Governance (LBHF), the Town Clerk and Executive Director of Finance (RBKC) and the Chief Operating Officer (WCC) be authorised to enter into a Tri-Borough agreement in respect of TFM underpinned by a Section 113 agreement for the client function, be approved. 

9.        That the methodology for allocating costs and indicative costs of TFM for each Borough, be noted.

10.   That authority to spend £750,000 (£250,000 per Authority) required to mobilise the TFM contract from May to September 2013, to be split equally between the boroughs on the basis that the work required to deliver the TFM project in each borough is broadly the same. (It is anticipated that the £250,000 can be met from existing facilities management budgets but in the event that this is not possible, it may be necessary to call on funding from borough contingency budgets. For H&F in particular, this will need to be funded from the Efficiency Projects Reserve), be approved.

11.   That the structure and form of the ICF be reviewed at a future date (no earlier than 12 months from contract commencement) with a view to considering a Tri-Borough Owned Company (TOC), should that prove to be commercially and operationally advantageous., be agreed.