new footscray hospital industry briefing · footscray hospital –industry briefing february 2019...
TRANSCRIPT
NEW FOOTSCRAY HOSPITALINDUSTRY BRIEFING
14 February 2019
Welcome and introduction
Jenny Mikakos MP Minister for Health
Robert Fiske Chief Executive Officer, Victorian Health and Human Services Building
Authority
Russell Harrison Chief Executive Officer, Western Health
Tina Skliros Project Director, Victorian Health and Human Services Building Authority
Jason Loos Deputy Secretary, Commercial, Department of Treasury and Finance
Stephen Wall Chief Executive Officer, Maribyrnong City Council
Andrew Bradley Manager, Strategic Projects and Supply Chains, Industry Capability Network
Footscray Hospital – Industry Briefing February 2019 2
Agenda
Building a better hospital for Melbourne’s inner west
The investment need
The health service need
Project scope and procurement
Partnerships Victoria – the policy context
The Council perspective
Industry Capability Network
Q&A
Footscray Hospital – Industry Briefing February 2019 3
Jenny Mikakos MP
Building a better hospital for Melbourne’s inner west
Victorian Government’s health agenda
Footscray Hospital – Industry Briefing February 2019 5
The Victorian Government is committed to improving the health and
wellbeing of Victorians and the Victorian healthcare system as a whole.
Largest ever health capital investment in Victoria of up to $1.5 billion to deliver
the 504 bed New Footscray hospital.
Better accessBetter health Better care
World-class care close to home
Footscray Hospital – Industry Briefing February 2019 6
Cut wait times
Almost 15,000 additional patients to be
treated each year.
Almost 20,000 additional emergency
department admissions each year.
Up to 17,000 patients redirected from
inner-city hospitals back to their local
hospital in the west.
The opportunity
Footscray Hospital – Industry Briefing February 2019 7
Unprecedented opportunity to create a precinct that delivers significant
health, economic and education benefits to the people of the west.
Located on the site of the Victoria University Footscray Park campus car park.
Transform Melbourne’s inner-west into a vibrant health and education precinct.
Create in excess of 1,000 construction jobs and up to 1,000 jobs in health and
education.
New Footscray Hospital Project Video
Footscray Hospital – Industry Briefing February 2019 8
To view the video presented at the Industry Briefing, please click here.
.
.
RobertFiske
New Footscray Hospital -the investment need
VHHSBA is focussed on developing new solutions to old problems
Footscray Hospital – Industry Briefing February 2019 10
Boost efficiencies and innovation in the
planning, management and delivery of
major health and housing infrastructure.
Pipeline of projects:
• Frankston Hospital
• Ballarat Hospital
• Community Hospitals
• Latrobe Regional Hospital – Stage 3
• Sunshine Mental Health
And planning for upgrades at The Alfred Hospital, Royal
Melbourne Hospital and a potential new hospital Melton (subject
to further funding)Pictured: Artist impression of proposed redevelopment of The Alfred Hospital
Demand for hospital services in Melbourne’s west is
expected to more than double within the next 20 years
Footscray Hospital – Industry Briefing February 2019 11
Population growth Increased utilisation
Melbourne’s west is forecast to grow by more than
550,000 residents by 2036-37, an increase of more
than 60% on the current population.
New treatment options are increasing the utilisation
of hospital services.
Growth in ageing population Local demographics
Older population in western Melbourne to grow by
153% by 2036, compared with 95% for all Victoria.
Low income or welfare dependent families comprise
11.7% of the population in western Melbourne,
compared with 8.7% average across the state.
A system-wide response is required to meet this demand
Footscray Hospital – Industry Briefing February 2019 12
A new Footscray Hospital.
A business case to explore a potential
new hospital in Melton.
Further expansions at Sunshine and
Werribee Mercy hospitals.
Pictured: Werribee Mercy Hospital
RussellHarrison
New Footscray Hospital -the health service need
Footscray Hospital – Industry Briefing February 2019 14
Footscray Hospital is part of an integrated network that
provides services to Melbourne’s west
Footscray Hospital – Industry Briefing February 2019 15
Current Footscray Hospital
Footscray Hospital – Industry Briefing February 2019 16
Western Health’s ambitions for the new Footscray Hospital
TinaSkliros
Project scopeand procurement
Footscray Hospital – Industry Briefing February 2019 18
All information is provided solely for the purpose of informing
industry of the project status and broad directions
• No representations are to be implied or inferred
• VHHSBA reserves its absolute discretion to further develop the project as it sees fit
• VHHSBA has appointed O’Connor Marsden & Associates as Probity Adviser for
the project
• Formal communication and probity processes are now in operation
• All communications are to be directed to the Project Director via email at
The new Footscray Hospital will deliver at least 504 beds
Footscray Hospital – Industry Briefing February 2019 19
Up to $1.5 billion to deliver:
• at least 504 inpatient beds
• acute facilities
• specialist facilities
• clinical support spaces
• carparking
• teaching and training spaces
Footscray Hospital – Industry Briefing February 2019 20
The new hospital will be located at 89 Ballarat Road, Footscray
Public-Private Partnership (PPP)
Footscray Hospital – Industry Briefing February 2019 21
Core services model
• Clinical health services remain with the State
• Asset maintenance and lifecycle replacement, help desk, security, waste
management, pest control, cleaning (base), car park management and
grounds maintenance services and utilities management to be passed to the
private sector
Up to $1.5 billion has been committed to deliver the
project
Footscray Hospital – Industry Briefing February 2019 22
Funding envelope allows for:
• land acquisition
• PPP project scope
Value creation is anticipated from commercial opportunities
Anticipated to have an upscope and downscope ladder
• Early Works
• existing site demolition
New Footscray Hospital to open in 2025
Footscray Hospital – Industry Briefing February 2019 23
Activity Indicative timelines
Tender process
(Public Private
Partnership)
Release Invitation for Expressions of Interest Mid 2019
Release Request for Proposal Late 2019
Contract and Financial Close 2020
Construction and
commissioning
Construction commencement 2020
Operational commencement of the new Footscray Hospital 2025
Targeted market sounding will commence in March 2019
Footscray Hospital – Industry Briefing February 2019 24
To update the market on the project requirements and seek input on the
project’s development to facilitate a value for money outcome.
Key issues for discussion:
• market capability, capacity and appetite
• procurement and site due diligence
• financing options
• program
• FM services delivery models
• potential commercial opportunities.
Other issues
Footscray Hospital – Industry Briefing February 2019 25
• Shortlisting – 2 or 3 bidders?
• Bid costs
• Potential early access to data room
• Early Works
The State’s objectives in delivering the new Footscray
Hospital are to:
Footscray Hospital – Industry Briefing February 2019 26
• Improve access to quality care close to home for the people of western Melbourne.
• Use evidence-based design to promote the physical and mental wellbeing of its
diverse users, including patients, families, staff and the broader community.
• Enable the delivery of integrated care, both within and beyond the hospital.
• Support operational efficiency and provide flexibility to respond to changing
clinical practice, technology and service demand.
• Create an ecologically sustainable precinct that optimises value for money on a
whole of life basis.
• Deliver a vibrant community asset that enhances liveability and fosters
collaboration in education, training and research.
Jason Loos
Partnerships Victoria -the policy context
Footscray Hospital – Industry Briefing February 2019 28
Public-Private Partnership (PPP) model
High level of activity and continuing roll-out of PPPs
Upcoming budget to prioritise election commitments
Strong outcomes in the sector - five PPP hospitals successfully operating
Procurement rationale
• ‘Whole of life’ approach offering comparative advantages, including greater certainty over cost and
timely completion, risk management and opportunity for improved value for money
• Contractual flexibility to deliver future upgrades
• Greater innovation opportunities offered to the market
PPP value for money considerations
Footscray Hospital – Industry Briefing February 2019 29
Potential scope ladder
• PSC as an affordability benchmark
• identify priority scope to add or remove
State capital contribution
• potential to deliver value while preserving
private sector incentives
Recent strong outcomes for long-term
finance
Footscray Hospital – Industry Briefing February 2019 30
Standard templates and guidance
Market-tested templates and guidance to improve certainty, efficiency and reduce
bid costs:
• standard project deed and guidance notes
• standard EOI and RFP templates
• contract management guide.
New Footscray Hospital will adopt the PV Standard Project Deed:
• a focus on project specific issues
• increased transparency and certainty
• improved outcomes
• reduced tender costs for the State and private sector.
PPP process efficiencies
Footscray Hospital – Industry Briefing February 2019 31
PPP process efficiencies
• Government is seeking an efficient tender
process
• Encourage quality EOI responses from the
market to enable shortlisting of two or three
parties
• No intention to reimburse bid costs
Applying Government policy
• Social procurement
• Local Jobs First
• Value creation and capture
StephenWall
The Council’sperspective
Welcome To Footscray
1.Engagement program with local
community
2.Shared Vision / Precinct Plan with early
transport improvement package
3.Working with Local Businesses
A Better Neighbourhood
Working Together
Site
Insert Laneway Video
Footscray Precinct
Andrew Bradley
Understanding ICNVictoria’s role
Overview
Footscray Hospital – Industry Briefing February 2019 61
• About us
• Local Jobs First policy application and
assistance
• Local Jobs First policy-based services
• Commercial services
About us
Footscray Hospital – Industry Briefing February 2019 62
Local Jobs First policy application
Footscray Hospital – Industry Briefing February 2019 63
• Advise Government on minimum local content %
• Benchmarking of local industry capability targets
• Assess achievability of bidder’s LJF LIDP
commitments
• Monitor commitments
• Report to Government
Government supported services – bid phase
Footscray Hospital – Industry Briefing February 2019 64
• Industry adviser allocated to each bid team
• Advise in developing commitments for LJF
LIDP plan
• Local capability research
• Localisation assistance
• ICN Gateway Project page
• ICN commercial services
• MPSG commitments now part of LJF
Government supported services – bid phase
Footscray Hospital – Industry Briefing February 2019 65
• Local industry engagement strategies
• Customer care
• Training
Government Supported Services – post award
Footscray Hospital – Industry Briefing February 2019 66
• Remedial localisation assistance
• Compliance assistance
• Monitoring and reporting
• Use of ICN analytics
Commercial services
Footscray Hospital – Industry Briefing February 2019 67
• Industry adviser secondment
• Supply chain research
Contact details
Footscray Hospital – Industry Briefing February 2019 68
Andrew Bradley
Further information and contact details
Footscray Hospital – Industry Briefing February 2019 69
Enquiries
• Project Director:
Tina Skliros
• Probity:
Andrea Hassett
O’Connor Marsden & Associates
Further information
• VHHSBA
vhhsba.vic.gov.au
• Western Health
westernhealth.org.au
• Partnerships Victoria
partnerships.vic.gov.au
• Local Jobs First
localjobsfirst.vic.gov.au
• Maribyrnong City Council
maribyrnong.vic.gov.au