Procura Consulting

FM Services Offering and Market Insight April 2015

Our knowledge, your results

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What FM services does Procura deliver?

History of successful delivery using a market leading methodology to

deliver breakthrough results in the transformation of facilities

management services. Key stages in delivery:

1 – Detailed Situation and Opportunity

Analysis

2 – Develop and Approval of Strategy

3 - Strategy Implementation

4 - Strategy Performance Review

Stakeholder Engagement

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Key FM Services Provided

Specialist Programme and Project Management - Developed a market leading methodology covering: •Project Scoping•Business Case•Road Map/Strategic Direction Planning•Project Planning •Risk Analysis and Management •Resource Planning/Scheduling •Budget Management •Reporting MI

Technical Expertise •Highly Qualified – MRICS, BIFM•Over 20 years experience in facilities management (hard and soft) for

operational, investment and PFI property portfolio. •Deep sector knowledge from a client and provider perspective.•Specialist in Office, Data Centres, Industrial, Retail Property.•FM Strategy Formation and Review •Operation and Performance Review•Technical/Maintenance Strategy Audit.

Procurement and Outsourcing - Developed a specific methodology covering: •Strategic sourcing of All Soft, Hard and TFM/IFM services•Cost Analysis/Optimisation•Market Engagement/ Intelligence•Contract and performance Review•Tender Preparation•Specification, KPI/SLA, Service Matrix and Contract Formation.

Organisational Analysis and Design•Review of Existing Service Delivery Models (SDM)•Workflow Analysis•Expert in Business Design Architecture of effective TOM’s•Transition of existing SDM to TOM. •Detailed knowledge on TUPE.

Stakeholder Engagement & Collaboration Throughout

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Key FM Services Provided

FM Business Process – Analysis and Design •Business process mapping •Review of “as is” processes•Route cause analysis to identify areas of “waste”•Design of “To be” business processes (IT and Non IT process design). •Transition and implementation services

Procurement and Implementation of Real Estate and FM Related Software •Review of existing “as is” systems•Gap Analysis•Formation of Business Requirements •Detailed knowledge the industry leading proprietary IT systems including

Property & Asset Management, CAFM, Planned/Reactive Maintenance, Utilities, H & S &Procurement IT Systems

• Implemented (full life cycle) IT systems with connections into ERP systems.

Transition and Mobilisation - Developed a market tested methodology covering: •Developed specific methodology to effectively transition from incumbent

suppliers and/or internal DLO to the new TOM/outsourced supplier. •Effectively transitioned and mobilised high value FM contracts for multi national

PLC’s, national retail/leisure chains and PFI/PPP projects.

Supplier Relationship and Performance Management (“SRPM”) •Building effective supplier relationships. •Design and implementation of Performance Management Frameworks to

monitor compliance - specification, legislation, KPI/SLA and costs. •Successful turnaround of relationships. •Drive continuous improvement in people, process & performance. •Variation Control

Stakeholder Engagement & Collaboration Throughout

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What do Clients “gain” by using Procura?

• Reduction in costs – Average of 30% (Totex) per annum.

• Service Models aligned to meet business objectives – flexible,

adaptable.

• Reduced supply chain risk, greater budget certainty.

• Increased MI/BI and overall service delivery transparency.

• Effective maintenance and life cycle strategies.

• Increased compliance to legislation, HSE and best practice (CIBSE).

• Increased performance of suppliers.

• Embedding continuous improvement.

• Leaner business processes and IT systems.

• Increased quality of supplier relationship, flexibility and creation of

strategic partnership working.

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Why do Clients Use Procura?

• Procura focuses on the “needs” of the business.

• Developed best practice processes, procedures and methodologies

that have successfully delivered full lifecycle projects.

• Market leading, adaptable procurement/outsourcing documentation

including specifications, SLA/KPI, service/price/evaluation matrices.

• Proven experts in the industry. Deep sector market knowledge from

over 20 years experience from client and supplier side.

• Consistent delivery of client key outcomes.

• Links with key third party suppliers who assist in delivery of

“specialist technical” aspects of FM.

• Well respected in the industry.

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Key FM Project ProfilesOrganisation Situation Key Actions Results

Automotive Based Financial Services International Plc

•2 Existing Buildings (50K sq ft) and New HQ Building (100K sq ft) •Existing managing agent arrangement with primary FM supplier with multiple suppliers (60 – contracted directly with client) covering hard and soft FM. •Detailed situation review highlighted: I. Thinly specified services with no

KPI/SLA. II. Limited supplier performance III. Limited supplier due diligence. IV. Operational issues. V. Managing Agent Cost base – Cost

plus Man Fee (Man Fee - RPI increases).

VI. Little innovation/best practice.

•Future Strategy - Client requiring substantial change to existing service model including new ways of working, move to TFM with defined output based specification, tight SLA/KPI, introduction of best practices, fixed cost base with continuous improvement and supplier incentives.

•Detailed Situational Analysis and Operational review. •Rectification of operational issues. •Termination/variation of existing contracts, to align with new contract commencement date. •Formation of Commercial and Technical Data Pack•Market engagement/benchmarking. •Project management and tender of IFM (utilising Procura methodology), aligned to the clients requirements, over reduced timescales.

• FM Costs - Reduction of 25% against annual spend (fixed costs only). Future targeted costs savings – year on year. •Effective contract, specification, KPI/SLA, and Service Matrix. •Cost Base – Primarily Fixed with small element of Variable. •Reduced FM Management cost •Increased staff quality of the IFM supplier. •Increased supplier performance, specification, innovation, cost certainty. Reduced risk. •Flexible service delivery model to allow for projects. •Detailed MI, Lean Invoicing.

Private Equity Backed Licence and Leisure Company

•Private Equity Acquisition of 333 Pubs, Hotels and Nightclubs from large PLC•Needed to create a service delivery model and a national FM supply chain (after end of transition agreement) covering FM IT Systems, Property Advisory, FM (Hard and Soft), Utilities, and Specialist HSE from “Greenfield”. •To be put in place within 6 months

•Designed and implemented the service delivery model and TUPE transfer from M&B of key staff. •Procurement and implementation of the FM (PPM, Reactive) IT System (connected to the Accounts system) and the nationwide install into the properties. •Tendered the National Supply chain for all FM Services •Secured Utility Supplies, Consultancy/Bureau Services•Project managed the supply chain mobilisation. •Implemented lean process

• FM Costs – Reduction of 35% against previous year spend. • FM IT System – Integrated with the Finance System• Detailed MI, Lean Invoicing. Analysis of Parts/Material Costs.•Implementation of Audit Controls. •Utilities – 6% Reduction in Cost. •Lean FM and Finance Team Service structure

Key Tender Observations In The FM IndustryMarket New Tender

Lack of spare capacity in the market and significant growing in new Business Opportunities

Approach to the market needs to professional, precise and well considered. Suppliers will “analyse” tenders vs. Opportunity analysis against other opportunities.

Supplier Bidding Teams analysis of new FM Tenders

Suppliers will “analyse” (many criteria) tenders and look at the form of the tender, data pack and overall cost to bid. Tender pack has to give “key relevant information, in concise fashion”. Tender has to hit key markers to ensure/entice tender returns.

Commercial and Technical Data Pack

Needs to be well formed. If not, suppliers will make assumptions and add % of risk premium.

Verification Clause Window of opportunity (3 - 6mths) to the appointed supplier to review the information given during the tender and review prices under the contract.

Increase in “No Bid” Becoming more frequent in last 12 months due to increase in market opportunities and market diversification.

Increasing T1/T2 Supplier cost base

Primarily due to supplier /sub contractor power in the marketplace. “Pent up” wage increases from last seven years, increasing material prices and shortage of skilled labour supply are now elevating prices.

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Who is Procura? Key Personnel and Clients

OLIVER MOUNTAIN, Owner. Before founding Procura, Oliver was Director of several property, PFI/PPP and Facilities Management companies. Consultancy trained by ATOS, consulted extensively across the UK and Europe. Earlier in his career he held senior procurement, property and FM roles with Consulting firms , TDR Capital, Stonegate Pub Company, Exponent Capital, Morgan Sindall, Boots Plc, Morrison Supermarkets Plc, FMS, central government and other public sector. Oliver has an BSc (Hons) in Surveying from Northumbria University and is a Qualified Member of the RICS (MRICS) and APM.

ocm2@btinternet.com 07814 703041

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