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Facilities Management Cabinet Office Control
Scope
The Crown Commercial Service (CCS) FM Category Team will act on behalf of Cabinet Office ERG to
ensure the centralised procurement function of Facilities Management contracts is compliant.
They are a mandated requirement as part of the Cabinet Office Spending Controls
https://www.gov.uk/government/news/new-government-spending-controls-to-deliver-billionsmore-in-savings to approve all new FM procurements and contract extensions to ensure contract
compliance is met.
The Cabinet Office controls have three broad objectives:
 To stop unnecessary expenditure
 To support organisations to deliver better value for money
 To support organisations to deliver reform that is aligned to Government policy
The Cabinet Office controls apply to all bodies listed under the Office of National Statistics (ONS)
definition of central government, this includes:
 All Central Government Departments
 The majority of government agencies
 The majority of non-Departmental public bodies (NDPB’s)
 Most other non-market bodies that are majority controlled and/or financed by
Departments
 Certain public corporations are also in scope and subject to the Cabinet Office controls
including GovCos that are considered by ONS to be a central government body
The following are not included:
 Broadcasters
 The NHS
 Further education colleges, universities and academies
 Olympic bodies
 Site Licence Companies (SLC’s)
See Section 1.8 of main controls document above for further details on scope.
Services in scope for FM Controls include (but are not limited to):
Bundled FM Contracts (Total, Hard, Soft)
Security
Catering
Cleaning
Internal Repair & Maintenance
M&E Repair & Maintenance
External & Structural Repair & Maintenance
Courier & External Distribution Services
Reception Services
Waste Management/Disposal
Internal Plants & Decorations
Reprographics
Grounds Maintenance
Post Room/Internal Distribution Services
Condition Surveys
Sports/Leisure/Child Care Facility Management
Office Machinery Servicing and Maintenance
Archiving
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Approvals
All new facilities management (FM) contracts and contract extensions must be approved by the
FM Category and meet with the CCS FM compliance criteria.
There is a two stage approval process spanning two controls – the FM Control and the Strategic
Supplier control for new contracts over £5m total contract value where a Strategic Supplier is
being appointed. The stages are detailed below:
New contracts – approval is required at Outline Business Case (OBC)/procurement strategy stage:
 Under £5m Total Contract Value (TCV) – delegated authority is given to CCS FM to
approve.
 Over £5m TCV – CCS FM submits to CCS Commercial Intelligence Team for
Ministerial approval.
New contracts – at preferred supplier stage prior to contract award:
 Under £5m TCV – inform CCS FM.
 Over £5m TCV – with a strategic supplier, CCS FM to submit Recommendation to
Award to CCS Commercial Intelligence Team for final Ministerial approval.
 Over £5m TCV – non-strategic supplier inform CCS FM.
Extensions – approval is required at the option appraisal stage:
 Under £5m TCV of the extension period non-strategic supplier – delegated
authority is given to CCS FM to approve.
 Under £5m TCV of the extension period with a strategic supplier – CCS FM to
request comment from CCS Commercial Intelligence Team but have delegated
authority to approve in-house.
 Over £5m TCV of the extension period with a strategic supplier - CCS FM submit to
CCS Commercial Intelligence Team for Ministerial approval.
 Over £5m TCV of the extension period non-strategic supplier - delegated authority
is given to CCS FM to approve.
CCS FM will report all approval cases to the Facilities Management Board (FMB) on a monthly
basis.
The Cabinet Office controls documents for both Facilities Management and Strategic Suppliers can
be found at https://www.gov.uk/government/publications/cabinet-office-controls/cabinet-officecontrols-guidance-version-32
Please see process flow attached for further information including timescales.
All approval forms should be sent in the first instance to: [email protected]
Please ensure FM control forms are submitted at strategy stage, prior to any OJEU or tender
documents being issued and with sufficient time for decisions to be taken.
The Cabinet Office Central Spending Controls supplement existing rules and processes regarding
public expenditure.
The Cabinet Office Spending Controls work within the broader framework of Managing Public
Money and Treasury approval of expenditure through the practice of delegating authority to
departments to enter into commitments and spend within predefined limits without specific
approval.
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For most controls, the Treasury has lowered the level of delegation and will not approve spending
without the Cabinet Office’s prior approval. In other cases, Cabinet Office approval is required for
spending in areas that have been collectively agreed as Government policy at the Public
Expenditure Committee (Efficiency and Reform).
What has to be approved applies equally to ALB’s as it does to departments, but departments will
continue to set ALB delegations below central approval limits.
Compliance
Compliant contracts are defined as contracting models that are approved by the Crown
Commercial Service and meet with the stated compliance criteria and that fit with the wider
CCS/ERG FM strategy requirements.
These are:
 Contracts which are open to departments and their family members (ALBs, NDPBs)
with the ability to be managed through the contract administration of the parent
organisation. The appropriate OJEU wording must be in place in order to minimise the
risk of infraction;
 Crown Commercial Service Frameworks or other department collaborative FM
frameworks;
 Public Buying Organisation (e.g., Pro5, Procure21 contract agreements/frameworks)
that fit compliant criteria;
 Contracts that use the un-amended terms and conditions as found within the NEC
suite of contracts. Where z-clauses are added, these should be made visible to
ensure standard and consistent requirements are met.
They should:
 Incorporate the FM Service Standards within any specification for offices (where
applicable);
 Have the ability to fit into the wider CCS/ERG FM strategy through contractual conditions
that allow contracts to comply and integrate into a new model (e.g. transparency of FM
data as requested);
 Understand that the FM Contracting Model will be available for use from end-Feb 2015,
with consideration for the following:
- Call off procedure
- Mobilisation period (up to 6 months)
 Clearly demonstrate Value For Money for Government as a whole;
 Provide Management Information on total Contract cost, actual spend and performance
data and savings (PPN06) and enable management information to be shared with the CCS
Managed Service function;
 Provide a 90 day/3 month termination clause;
 Ensure the contract includes requirement to monitor energy, waste and water
consumption and provides incentives to minimise these;
 Meets with the Government Closed Loop paper recycling policy which utilises the
Government Office Supplies Contract ;
 Where possible any catering contracts should aim for nil subsidy or best commercial
model;
 Input to the FM benchmarking service via e-PIMS;
 Satisfy the Transparency agenda through Publication of all tender documentation (PQQ,
ITT and Ts&Cs) on Business Link website;
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

Publication of all new FM contract opportunities (over £10k) in full through contracts
finder; and
Ensure that opportunities for SME’s are available either through first or second tier
contracting, fair payment practices are applied including the use of Project Bank Account
where possible.
Non-compliance
Non-compliant and retrospective requests for FM contracts that have already gone to OJEU,
competition or have been awarded will not be approved and will be escalated to Cabinet Office
Central Controls, who will take further action with the department’s Single Point of Contact for
Controls (SPOCs) which may include:
 Escalation to senior official level – CO COO or CPO would write to relevant senior leads in
ALBs or parent departments to highlight the issue
 Escalation to Ministerial level – As above only Minister to Minister
 Lowering of thresholds – If an organisation breeches repeatedly, the Controls team has
lowered the threshold at which they are required to see approval
 Qualification of accounts – Engagement with NAO to highlight non-compliant spend when it
comes to auditing of accounts. This would flag up that spend as ‘irregular’ and kick off a
reporting requirement.
Attachments
Please note that where possible, we will need to see supporting documentation as attachments.
This will speed up the signing off process significantly. Where documents are not available please
state clearly, in the comments boxes (which are expandable), the reasons why.
Forecast Benefits
Please clearly identify forecast cashable savings in a year on year basis that demonstrates the
overall benefit for the period of the contractual arrangement using current expenditure as the
baseline. These savings should be updated when submitting the Contract Award Report.
Expected Timescales (for sign off)
For all compliant and straightforward contracts and contract extensions less than £5m total
contract value, there is a 10 working day SLA for the CCS FM team to return signed off approvals
to departments. Where contracts are over £5m the time to sign off approvals will be 28 calendar
days from submission to CCS. Those contracts with strategic suppliers will need to be submitted to
the CCS Commercial Intelligence Team for further review/scrutiny and where necessary
Commercial Models team. The CCS Commercial Intelligence Team will submit recommendations to
the Crown Commercial Representative where a strategic supplier is known, and will decide if the
request requires further ministerial approval (please see the process flow at the back of this form).
For more information or to submit an FM approval, please contact:
[email protected]
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FM Procurement Approval Checklist
CCS FM Ref Number
Department/ALB
Title of Contract
Date
Please provide full
postal address of
property/ies included
in the contract
(add attachment if
required)
Request for
New Procurement
Yes
Total Contract Value (for term of contract)
e.g. 3+2 TCV is for the 3 year period not the extension period
Include fixed and variable elements
Annual Value of Procurement
Annual Value of current provision
Term of Contract (years) e.g. 3+2
Name of Current FM Contractor(s)
Timescale for Procurement Activity
OJEU Issued:
Tenders Issued:
Contract Award:
Go Live:
Contract Extension
Total Contract Value for extension period e.g. +2
Annual Value of Extension
Term of Extension (years)
TFM
Single Service
Managing Agent
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Bundled
No
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Other (please detail below)
Please provide detail of why you have chosen this approach below including reason for Extension
and not New Procurement Exercise. If this is a new commercial model (i.e. aggregation of many
single services into TFM) please state in the comments box below
Comments
Be sure to include:
 What the service is
 Date you wish to extend to
 Why the extension is required and a tender / mini competition is not being carried out
 Risk attributed to not extending.
We would recommend adding at the end;
It is our intention that after this extension period, we would have defined a full scope which will
then be competitively tendered using the new FMCM Framework.
Type of Contract
Yes
No
Crown Commercial Service Framework
Other Departmental/Buying Organisation Framework
Other Compliant Contract (see front page for definition of compliant)
Non-Compliant Contract ( see front page for definition of non-compliant)
Comments – please explain if requirement is for Non-Compliant Contract
For each of the headlines above that you have ticked either Yes or No to, you will now need to
provide details for your responses.
For example, we would advise something like:
There are currently no CCS Frameworks available that suit our requirement. FMCM would be our
option if available; however we are unable to hold off until this is awarded. Any future requirement
will be procured through this route.
UK SBS do not have a suitable framework and after review of other Departmental Frameworks
there are no other suitable frameworks to use.
This is a Non-Compliant Contract based on the fact that it was only set up for single use and
therefore is not available for other public bodies and it was not tendered on NEC terms.
Procurement Strategy
Yes
Business case/ procurement strategy attached
Have you built in competitive tension into the procurement approach?
Savings/benefits identified with supporting evidence for contract period
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No
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Total annual contract costs identified
Options Analysis
Gateway Review Undertaken (if so please attach as supporting evidence)
New Commercial Model for Department
Comments
For each of the headlines above that you have ticked either Yes or No to, you will now need to
provide details for your responses.
For example, we would advise something like:
The business case for this requirement is built on the continuity of service in the absence of the
FMCM Framework being available.
Competitive tension has been built into this contract
Savings have been identified for this extension and they are….
The total cost for the extension of this contract is ….. (provide detailed breakdown)
Options analysis is not applicable for extension
Gateway review is not applicable to this contract
The commercial model for this contract is provided.
Commercial Criteria
Yes
No
Has a breakdown of CAPEX, REVEX, OPEX and lifecycle costs been identified?
Has the pricing structure been explained? i.e. Fixed Price; Fixed Price Incentive;
Cost plus Fixed Fee; Cost plus Incentive Fee; etc
Have Overhead and Margins been identified?
Has any benchmarking been carried out to confirm the existing price is
competitive to ensure VFM? If yes, please detail below.
Have there been any previous contract extensions? If yes, please detail below.
Have any provisions been built into the contract on pricing? i.e. open book; day
rates; indexation etc
Comments – please use the space below to provide details if these are not in any attached business
cases or procurement strategies.
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For each of the headlines above that you have ticked either Yes or No to, you will now need to
provide details for your responses.
For example, we would advise something like:
Lifecycle costs have not been identified for this contract.
The pricing structure as well as fixed fees have been agreed, these are; …….
Overheads and margins have been outlined in the fee structure should additional resource be
required.
Benchmarking has not been completed to confirm if this is a competitive price.
When the original Contract was let it was based on a 3+1+1. As we have come to the end of the 3rd
year we are now looking to invoke the 1st +1 of this Contract.
No provisions have been built into the contract on pricing.
Please highlight savings that are being forecast to be delivered per year
Year
(please state)
£m
£m
£m
£m
£m
Savings
Total £m
Saving 1
Saving 2
Saving 3
Savings
achieved
Compliant Criteria
Yes
Incorporate the FM Service Standards within any specification for offices
(where applicable)
Have the ability to fit into the wider CCS/ERG FM strategy through contractual
conditions that allow contracts to comply and integrate into a new model (e.g.,
transparency of FM data as requested)
Understand that the FM Contracting Model will be available for use from endFeb 2015, with consideration for the following:
- Call off procedure
- Mobilisation period (up to 6 months)
Provide Management Information on total Contract cost, actual spend and
performance data and savings (PPN06) and enable management information to
be shared to the CCS Managed Service function
Provision of a 90 day/3 month termination clause
Available for use by other departments/ALB’s etc
Clearly demonstrate Value For Money for Government as a whole
Ensure the contract includes requirement to monitor energy, waste and water
consumption and provides incentives to minimise these
Meets with the Government Closed Loop paper recycling policy which utilises
the Government Office Supplies Contract
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No
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Satisfy the Transparency agenda through Publication of all tender
documentation (PQQ, ITT and Ts&Cs) on Business Link website
Publication of all new FM contract opportunities (over £10k) in full through
contracts finder
Catering Contracts - where possible any catering contracts should aim for nil
subsidy or best commercial model
Input to the FM benchmarking service via e-PIMS
Ensure that opportunities for SME’s are available either through first or second
tier contracting, fair payment practices are applied including the use of Project
Bank Account where possible.
Contracts that use the un-amended terms and conditions as found within the
NEC suite of contracts. Where z-clauses are added, these should be made
visible to ensure standard and consistent requirements are met (add below)
Comments – please comment if answer is No to any of above
For each of the headlines above that you have ticked either Yes or No to, you will now need to
provide details for your responses.
For example, we would advise something like:
FM Service Standards are not applicable to this Contract.
UK SBS share FM Data expenditure with CCS
We understands that the FMCM Framework will be available soon and going forward we would look
to test our requirement through to ensure compliance.
We have provided management information above in relation to this extension.
As this was not run through a NEC3 Contract there is not provision for a 90 day termination.
This contract is not available for anyone else to use.
Monitor Waste is not applicable to this contract
Government Closed Loop is not applicable to this contract
Transparency Agenda would be Not Applicable as this is an extension request.
Publication of new contract is not applicable to this contract
Catering Contract is not applicable to this contract
FM Benchmarking is not applicable to this contract at this time.
The Contract that we wish to extend is with an SME. Or. Whilst this Contract is not with an SME
supplier UK SBS work closely with our suppliers to incorporate SME’s into sub-contracting where
possible.
This contract was not let using NEC therefore no Z clauses were included
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Once you have completed all sections above, please email the form to
[email protected]
Approval to proceed
The CCS FM Team are satisfied that the processes carried out meet the new
Government requirements for centralised procurement of goods and services
and offer best value for money for Government as a whole.
Procurement Over £5m in Total Contract Value or Extensions with Strategic
Suppliers
All new contracts over £5m in TCV or extensions with strategic suppliers will be
submitted to the Commercial Intelligence Team for further ongoing approval as
part of the Cabinet Office Controls. The Commercial Intelligence Team will
decide if further approval required by the Minister for the Cabinet Office.
Yes
No
Yes
No
Yes
No
Date submitted to CCS Commercial Intelligence Team: (CCS FM to complete)
Procurement of a New Commercial Model
If it is deemed that this is a totally new commercial model and not a traditional
outsourcing arrangement, it will be submitted to the Commercial Models
control team for further review.
Date submitted to Commercial Models Team: (CCS FM to complete)
Note: CCS FM to act as liaison between Departments and Commercial Controls.
Comments
Signed
Name:
Title:
Department
Signature:
Date:
Name:
On behalf of FM Category, Crown Commercial Service
CCS
Signature:
Date:
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Internal CCS Use
Entered on Approvals Log
Date:
Initials:
Recommendation of Contract Award
(This section should be filled in and returned to CCS FM Team once evaluation has taken place and a
preferred bidder identified, prior to contract award)
Date (go live)
Supplier/s
Cost Elements
Annual:
Total Fixed Contract Value:
Inclusive fixed fee element:
Variable elements :
Contract Term
Pricing Basis:
Fixed
Fixed price incentive
Cost plus fixed fee
Cost plus incentive fee
Time plus materials
Other (please state)
Contract Award Report to include
Award Recommendation and details of basis for
recommendation
Evaluation criteria and scoring (final bidders)
Details of costs and savings against baseline (final bidders)
Details of service scope and properties included
Contract Management structure supplier side and
department side
Incentive mechanism (if used)
TUPE/Redundancy implications and risks/indemnities
(department & supplier)
Details of mobilisation timescales, costs, set up fees
(including any CAFM/FM systems)
Is a rate card being used?
Is the contract open book?
Investments & payback (department & supplier)
Confirmed alignment to FM Contract Model
What provision has been built in to address the risk of non
delivery, slippage or overspend by the supplier?
What benchmarking and checks have been done to
confirm the price is competitive?
Annual Value over £5m total contract value and with a
strategic supplier (if yes, CCS Commercial Intelligence
Team will be need to be notified BEFORE award for
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Yes
No
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further strategic supplier approval)
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Confirmed Savings (cashable)
Total Benefits £
Over number of years:
Yes
Total Contract Saving year 1
£
Year 2
£
Year 3
£
Year 4
£
Year 5
Please add further years if applicable.
£
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No
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FM Approval Process 7.5
Department
Data
Provision
New
Contracts
Annual FM Data
return on
contracts & spend
START
FM procurement
strategy/OBC
submitted 18 months
prior to tender for all
new FM Contracts
CCS
FM Category
CCS
Commercial
Intelligence Team
Pipeline
opportunity
analysis next 24
months
Spend analysis as
required
Log onto HMG
Controls Tool for
Review/
Comment
Over £5m
TCV?
FM Board
Monthly update
to FMB
Yes
Early
engagement
Revew/
comment
No
CCS
Commercial
Intelligence
Team manage
Ministerial
approval
process for
decision
CCS FM
Category
decision
New
Contracts
prior to
contract
award
START
Update HMG
Controls Tool
Monthly update
to FMB
Contract award report
at preferred supplier
stage prior to contract
award
Strategic
Supplier?
Yes
Review/
Comment
No
CCS FM
confirm receipt
of award
documentation
CCS
Commercial
Intelligence
Team manage
Crown Rep/
Ministerial
approval
process for
decision
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NOTE:
Departments
need to inform
CCS
Commercial
Intelligence
Team copying
CCS FM of
any material
changes to
services
resulting in
major contract
variation or
disputes with
Strategic
Suppliers
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FM Approval Process 7.5
Department
CCS
FM Category
CCS
Commercial
Intelligence Team
FM Board
START
Contract
Extensions
FM options analysis
and recommendation
18 months prior to
extension expiry
Log onto HMG
Controls Tool for
Review/Comment
Strategic
Supplier? >£5M
Monthly update
to FMB
Review/
Comment
Yes
No
CCS FM Category
decision
CCS
Commercial
Intelligence
Team manage
Crown Rep/
Ministerial
approval
process for
decision
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