THE HOUNSLOW EXPERIENCE:A CASE STUDY

Mark Steward

MAX Associates

28th April 2009

Operational and financial Operational and financial imperativesimperatives

Ten year contract ended 30th June 2008 Ageing facilities Failure to meet changing needs and

customer expectations Weak performance management Underdeveloped strategic planning

Member requirementsMember requirements

Explore future for all leisure and cultural services – spans Libraries, arts, sport, parks, heritage, museums

Consider full range of management models

Member requirementsMember requirements

Review current provision One size fits all ? Assess community needs and future demand Consider funding options – prudential

borrowing, market finance Develop integrated service provision through

co-location

Strong project management, led by Executive Steering Group

Project team established consisting of:– Procurement, Legal, Financial, Technical, Property

Clarity of purpose and vision – what are we trying to achieve ?

Preparation for the Preparation for the procurement processprocurement process

Evaluation criteria: – Capacity to deliver the service– Innovation– Quality– Management and appreciation of risk– Financial and legal considerations – Partnership working with stakeholders– Contribution to The Community Plan

Preparation for the Preparation for the procurement processprocurement process

Seven Lots advertised

Going out to the market: Going out to the market: the processthe process

Sport, Leisure and Community

Parks Management

Gunnersbury Park Estate

Heritage and Museums

Children’s Play

Arts and Events

Libraries

PHASE 1:– Procurement Strategy: to test each element,

encouraging small organisations to bid– Bidders across a range of backgrounds,

bidding for a variety of Lots– PQQ evaluation – reduce bidder no’s– Issue Instructions to bidders (Phase 2)

A summary of the processA summary of the process

PHASE 2:– Thematic dialogue with bidders

Initial site visits Vision for the services Financial imperatives Structural issues Service led issues

A summary of the processA summary of the process

PHASE 2 cont.... Added value – from merging specific Lots

together Draft service specifications and contractual

heads of terms drafted– Further site visits undertaken– Issue further instructions to bidders– Evaluation of Phase 2 – reduce bidder no’s further

A summary of the processA summary of the process

PHASE 3– Explore “hub” concept in detail– Consider initial bidder solutions – draft method

statements and scheme designs– Legal and financial dialogue– Service specifications finalised– Bidders to produce detailed solutions based upon

service specifications– CLOSE DIALOGUE– Evaluation of Stage 3 – prepare documents for BAFO

A summary of the processA summary of the process

PHASE 4– BAFO documentation agreed with Member Steering Group– BAFO documentation circulated to bidders

A summary of the processA summary of the process

PHASE 5– Member presentations– BAFO evaluation– Enter Preferred Bidder Phase - April 2008:

Sport, Leisure and Community – Fusion Lifestyle Parks Management/Gunnersbury Park Estate – John Laing

Integrated Services (in partnership with Continental Landscapes)

Libraries and Culture – John Laing Integrated Services (in partnership with Tribal Consulting)

A summary of the processA summary of the process

PHASE 6– Preferred Bidder due diligence– Prepare for TUPE transfer– Direct debit transfer and documentation handover

PHASE 7– Contract commencement !!

A summary of the processA summary of the process

Higher participation Higher income Lower expenditure Established marketing Market knowledge NNDR and VAT savings

OutcomesOutcomes

OutcomesOutcomes

Longer term funding commitment Output-based performance management

regime Ongoing communication and consultation:

continuous service improvement Client side strengthened

Creating a welcoming environment

Re- branding Libraries

Creating a Library Service “fit for purpose”

Hub concept

11stst 6 months 6 months

Head of Leisure appointed Output-based performance management

regime (client) Project Board established led by Leader of the

Council Client structure agreed – 5 posts Staff re-structuring commenced Hounslow Community Trust (HCT) established

Next 6 monthsNext 6 months

Planning permission for leisure refurbishment and hub development submitted mid March

Submission of HLF bids for parks Submission of Green Flag applications Review of membership schemes and pricing Library rebranding and capital works agreed On line booking implemented Annual Service Plans agreed – linked to

paymech

Questions

Mark Steward

mark@max-associates.com