Headquarters Project (“Project”)

Background

The Government of Barbados – independently and in conjunction with other Caribbean states – has for some time been reviewing its procedures for public procurement and has moved towards adopting the UK approach based on the EU Procurement Directive. A suitable legislative framework has yet to be enacted.

AFC were engaged in February 2011 by a major Barbadian construction company which had been pre-selected as a bidder for a project being procured using a variant of the PFI competitive dialogue procedure guided by the principles set out in Standardisation of PFI Contracts Version 4 (“SoPC4”) issued by HM Treasury in March 07. The Project involves the financing and construction of a new 80,000 square metres headquarters building and a 25 year contract for facilities maintenance.

The assignment

AFC’s remit includes responsibility for bid strategy, planning for routine preventative and reactive maintenance, life cycle costing for renewal and replacement of assets, organisation and control of service provision via a remote help desk facility, creating methodology for service provision to meet output (availability-based) service specifications, programming inputs for CAFM data capture and reporting, training and support.

AF Consulting’s approach

AFC has designed a FM service delivery model to meet the requirements of a non-standard payment mechanism and a fully costed lifecycle plan intended to meet the end-of-term handover conditions based on a condition-related programme of planned maintenance and reactive capability controlled through a CAFM help desk facility. AFC has also provided strategic input into ISL’s approach to the pricing and management of risks.

Benefits to the bidder

The formal submission, which incorporates AFC’s approach to compliant delivery of operational services, was delivered in July 2011 and the contractor has been confirmed as preferred bidder.

Wider benefits

As financial markets in Barbados – and the wider Caribbean region – become more familiar with PFI, some of the existing issues around understanding of long-term risk allocation, management and pricing are likely to be resolved.

Summary

Through the implementation of its assignment to date AFC has assisted a successful bid for this major government project procured in a manner largely unfamiliar to the consortium and its local advisors, AFC will remain actively involved in advising the consortium in the detailed negotiations to contract close to be followed by training, mobilisation and delivery of operational services.