National ProcurementStrategy and PFI in the Fire &

Rescue Service

Terry BrewerInterim Chief Executive - Firebuy

_____________

Ken Knight LGA Advisor

AGENDAAGENDA

Introduction Firebuy NPS PFI

• Property• Helicopters

Procurement Pack

FIREBUY/ NATIONAL PROCUREMENT STRATEGY

What is Firebuy?

Firebuy is the national procurement body which will oversee the National Procurement Strategy for the FRS.

It will focus on procuring fire service-specific equipment, in particular, appliances, clothing and respiratory protection equipment.

It will be doing the technical investigations and standard-setting, develop output-based specifications and setting up call-off contracts for FRAS around the country.

It will also take the lead in subsequent contract management and service level monitoring.

Firebuy – Current Position

To be established as a company limited by guarantee, likely to be an executive NDPB from 3 April 2006

6 Executive Directors and a Chair 3 ‘ex officio’ Directors – LGA, LFEPA, CFOA CEO and ODPM will be observers Executives and Chair – appointed via OCPA rules Adverts for Chair & Execs – Closing date 30/11 As an NDPB it will report to Ministers, as a company it

will report to its shareholders the FRAs. Interim company in place

Firebuy Structure

Firebuy Board

Firebuy Management Board

National Procurement Board

TechnicalServices

Major Projects

Integrated Clothing Project

Vehicles &Equipment

FIRESA

Firebuy - Funding

2005/06 – Interim Firebuy funded by ODPM via LFEPA

2006/07 & 2007/08 – ODPM funded 2008/09 onwards – subject to ODPM /

LGA / CFOA discussions

National Procurement Strategy

Launched by Minister at fire show 2 November

Covers 3 year period 2005 - 2008

Who would do what?

Procurement Organisations

National

FiReBuy Appliances Integrated Clothing Project Respiratory Protective Equipment Smoke Alarms Handheld Radios

National Consortia Software licences IT hardware Mobile telephones

Fuel

Local / Regional

Regions / FRAs Minor operational equipment Services

Regional Consortia Stationery Office equipment

Sector Specific

Generic

National Procurement Projects

Integrated Clothing Project Vehicles and Operational Response Equipment Bluelight Database Fireground Radios Smoke Alarms Insurance Risk programme Manual Handling Disposal Services Agency Multigyms / Fitness Equipment CFOA - PFI Fire Stations / Helicopters

Other Issues

Already working with Civil Resilience to procure new dimension equipment and long term management

Have to work with the team for the proposed Fire Research. Academy and Fire Centre of Excellence to avoid duplication of effort.

PFI in the FRS

Round 5PropertyHelicopters

FRS PFI Round 5

Bids received Seven in all Largely accommodation–based One non-accommodation proposal Some proposals joined-up or suggest

joining-up £150m PFI credits available

BIDSBIDS

Staffordshire 2 Community Fire Stations 4 Response bases Refurbishment of existing station

Cumbria (in conjunction with Lancashire & Merseyside) 6 stations;

CarlisleWorkingtonPenrithAlstonLazonbyPatterdale

Gloucestershire Two new 4 bay fire stations to replace single 6 bay station Cheltenham – 3 bay community fire station

BIDS

Lancashire and Merseyside (in conjunction with Cumbria)

Relocation of 13 fire stations (9 new & 4 refurbished) inc. community facilities

Operational Resource centre in Merseyside LFEPA – Fire Stations Project

Refurbish 13 fire stations in London area Provision of 4 new stations

National- Airborne Rescue Project Specialist air support rescue service

National Property Partnerships for the Fire and Rescue Authorities

National Property Partnership

Joint Gloucestershire/ London Bid is aimed at providing an integrated national/regional framework model for tackling investment in new and refurbished fire stations or other accommodation.

Key Drivers 1 – Accommodation Issues

Wrong location Lack of investment and a backlog of

investment No longer fit for purpose Don’t meet the needs of a 21st century

fire service Involvement of key stakeholders

Key Drivers 2 – Accommodation Issues

The following drivers highlight why a new partnership model would be appropriate in relation to tackling investment in fire accommodation:

Individual investment levels fall below PFI threshold Too many to tackle in one go - coordinated planning

required Economies of scale and opportunities for shared use Procurement economies Production of standard specification and footprints Access to PFI and other funding to support the

programme

What might the model look like?

The following model represents how key stakeholders can become equity partners in FiReCo.

The individual fire authorities are the end customers, and could enter into lease plus agreements for the build/refurbishment of fire stations as part of this model. Alternatively they may be successful getting alternative funding such as PFI.

FiReCo will act as the procurer for the services, working into FiReBuy. The model could be setup to reflect a regional focus with various regional FireCos being established.

ODPM F & RAs Private

FirebuyFiReCo

Lease Agreement

PFIIndividual fire authorities

PFI Accommodation Summary

Similar models are in operation in other sectors and there appears to be an opportunity to create an integrated and targeted model in the Fire & Rescue Service.

This will enable economies of scale and common footprints for fire stations to be developed. It will also prevent the piecemeal approach to date and should enable a more focussed and partnership based programme to emerge.

This model could operate locally within an authority, within a region or nationally

If PFI not supported by ODPM still scope for model to be taken forward

Helicopters

Helicopter Project (NFARSS)

Modern FRS needs More flexible response Meet new challenges Support waiting functions

Land based only approach:

Requires capacity Limits scope of options to address challenges Doesn't address congestion/ access problems

Helicopter Project (NFARSS)

Proposal supported by CFOA is for a national fire air response support service (NFARRS)

NFARRS would help FRS meet new challenges;- Climate change Special services Collapsed structures

Key roles for NFARRS

Rapid transport of crews and specialist equipment Natural disaster response Command and reconnaissance at major five

operators Non-fire emergencies where there is an immediate

threat to life; Chemical/ biological Spills/ incidents Road traffic collisions Water rescues, etc

Key roles continued

Enhanced support to retained and volunteer crews in rural areas

Search and rescue (in support of UK SAR)

Enhanced command and control safety Support to urban search and rescue Deployment of joint MAIATs

MAP OF SIX SITE OPTIONS

Nature of Service

Helicopters will need to be able to; Land during major incidents Take up to 9 Fire-Fighters + air crew or ½ ton of

equipment & 4/5 FFs.

Service will need to operate all year National approach will minimise costs (police/ ambulance approach has resulted in piecemeal approach)

NFARRS would result in:

Reduction in need for specialist rescue staff and associated training

Improved attendance times for delivery of specialist teams and equipment

Support to and from other agencies Potential savings

Next steps

PFI bid has been submitted This has compared conventional/

leased/ PFI options PFI options best as links to life of asset

(25 years)

Key Issues:

If approved; Who would ‘own’ NFARSS ? How would project costs be funded?

If not approved: Given potential savings identified

should project be taken forward by LGA/ CFOA?

PFI – next steps

The deadline for submitting bids was Friday 7th October 2005.

The PFI Evaluation Team now assess the indicative bids received and make recommendations to Ministers

Anticipated that Ministers will announce the successful bids end November 2005

FRS/ Police PFI Procurement Pack

Its aim: To assist authorities with establishing PFI

projects and the PFI procurement process To reduce timescales for PFI projects

through greater standardisation etc Joint with Police/ Home Office and Firebuy In time to assist the Round 5 authorities Issued through the 4ps

FRS/ Police PFI Procurement Pack

It will cover: Strategic content Project development including Outline Business

Case Project delivery including time table Pre-qualification and shortlisting Tender documentation and specifications Contractual issues Completion and monitoring Model documentation – e.g. Payment mechanisms

Summary

NPS Published Firebuy will be in place 1/4/06 –

interim company set up PFI round 5 underway Property Model Option Helicopter Project Procurement Pack for PFI/ PPP being

developed

National ProcurementStrategy and PFI in the Fire &

Rescue Service

Terry BrewerInterim Chief Executive - Firebuy

_____________

Ken Knight LGA Advisor