Facilities Management in
Government
9th October
Introduction
John Samuel
Pr Eng; Pr CPM; AFP; C Eng;
BSc Eng (Civil); GDE; MBA;
MSAICE; MICE; MASCE (life); MSAFMAAssociations
Discussion topics
Why Facilities Management
Facilities Management in Government
Facilities Management Trends and Options
Why Facilities Management
Why Facilities Management
The unintended consequence of constructing more and more new
infrastructure, without addressing the condition of the existing
infrastructure, in the attempt to address imbalances in access to
services, is widening the gap in infrastructure maintenance.
Generally the poorest municipalities have acquired, relative to their
ability to look after it, the most infrastructure, while lacking the
resources to maintain the new and existing infrastructure
adequately.
The most common causes of the failure
of electricity reticulation systems are
faulty
Bloemhof: kill 3 and hospitalise >60
operating procedures, lack of planned
Grahamstown: no water for >3 weeks; sewerage
maintenance, damage (e.g. to
spills
underground
cables) during construction nearby,
Delmas: Cholera twice in 10 years
overloading, and equipment ageing.
Duvha Power station: Turbine and now a boiler –
600 MW
Gauteng water crisis: 2 weeks and counting
Facilities Management
For want of a nail the shoe was lost.
For want of a shoe the horse was lost.
For want of a horse the rider was lost.
For want of a rider the battle was lost.
For want of a battle the kingdom was lost.
And all for the want of a horseshoe nail.
MANAGEMENT FUNCTIONS:
The 4 basic management functions
that make up the management
process are:
PLANNING
ORGANIZING
INFLUENCING
CONTROLLING
Doing the thing Right
Strategy
Doing the Right thing
Management
Doing the thing right
A story – no breakfast
A story – no breakfast
FM Success: It all works
FM Success: It all works
FM Failure – one component
JHB water crisis: Northern suburbs affected
As officials work to restore supply,
more taps in Northern Johannesburg are running dry.
Facilities Management
In
Governement
FM In Government
Legislation
–
–
–
OHSAct
PFMA
GIAMA
You can acquire (free) a criminal record for
doing nothing
How ABSA spent R30 million in scaffolding
materials in Pretoria – a risk issue
GIAMA
Government Immovable Asset Management
Act - GIAMA
–
–
Only covers IMMOVABLE ASSETS
Talks of the Custodian and User
Custodian
–
KZN Premier who delegates KZN Provincial Public
Works
User
–
Any Department using an immovable asset
GIAMA - Custodian
On behalf of the State, Custodian for all
provincial immovable assets (offices, hospitals,
schools, clinics, Game Parks, workshops,
roads, legislature, provincial houses)
“Allocates” immovable assets to Users
Is the User for unallocated Assets
Responsible for the preservation of State
immovable asset value
Receives a copy of the User U-AMP
Completes the C-AMP plan
GIAMA - User
Uses any provincial immovable asset to fulfil its
mandate
Responsible for preserving the value of State
Immovable Assets (the act of preserving)
Asset register of immovable and moveable
assets
Plans, funds and implements maintenance
Completes and submits an annual U-AMP
User Must:
1.
Give effect to its user immovable asset management plan;
2.
Conduct immovable asset management consistent with
GIAMA
3.
Conduct immovable asset management consistent its U-AMP
4.
Annually revise its U-AMP after its budget has been finalised
by Treasury;
5.
Annually incorporate the revised U-AMP into its strategic plan;
6.
Submit the revised and amended U-AMP to the Custodian as
prescribed
17
User Must:
7.
Conduct a joint immovable asset planning process with the
Custodian;
8.
Submit a U-AMP to Treasury;
9.
Submit a copy of the U-AMP to the Custodian
10.
Establish a performance measurement system as prescribed;
11.
Execute a performance measurement system as prescribed;
12.
Surrender surplus immovable assets
13.
Amend its U-AMP in accordance with the prescribed process
18
U-AMP
1.
Management plan for (each and the total of) all immovable assets to
be used or intended to be used
2.
Strategic Needs Assessment – What is required
3.
Acquisition Plan
4.
Operations Plan (for each and the total of all immovable assets).
The operations plan will include an allowance for operations, reactive
maintenance, planned or programmed maintenance, refurbishment
plan, resourcing, procurement, timeline and budgets.
5.
Surrender Plan for assets that are not efficiently being used or not
supporting the User’s delivery of services.
19
U-AMP
6. Treasury sets the submission date for Original to Treasury;
7.
Custodian sets the submission date for copy to Custodian;
8.
Part of the User Strategic Plan to Treasury;
9.
Principal immovable asset strategic planning instrument;
10.
Guides and informs the User all immovable asset management
decisions;
11.
Binds the User in the exercise of its executive authority;
20
GIAMA – PPP and FM
Institution is the Custodian and User
Private Party generates the plans
What does the Private Party provide4 Tirasano
Monthly report August 2014.pdf
Facilities Management
Trends
and
Options
FM Options
Fully in-house
Contract out functional services
Contract out to an integrated Service Provider
PPP
Control you keep – the issue
management structure
risk transfer
FM Trends
FM Involvement – In-house
Plan, execute and report hard and soft services
Asset planning, planned maintenance,
budgeting, balancing budget against work
“holding on to” the budget – budget cuts
Staff salaries – fixed cost
Staff Management
Lots of lower level staff
Higher level skills scarcity
Consumable losses
Performance management of staff
FM – Functional contracts
The FM client for contracts
Contract interface with Departmental staff
Multiple contracts (Hard FM, Soft FM)
Expensive ongoing contract procurement
FM is the single point co-ordinator
Functional contract management is done by
FM
“Largish” contract management staff
Little to no risk transfer
All planning and reporting by FM
FM – Integrated contract
The FM client for single contract
Contract interface with Departmental staff
Single contract (Hard FM, Soft FM)
One contract procurement every 3 to 5 years
FM has a single point co-ordinator in contract
Functional contract management is done by
Contractor
Small contract management staff
Some risk transfer
Short term planning and reporting by
Contractor
FM – PPP
The FM client for single contract
Contract interface with Departmental staff
Construction, Hard FM, Soft FM
One contract procurement 25 years
FM has a single point co-ordinator in contract
Functional contract management is done by
Contractor
Very small contract management staff
significant risk transfer
All planning and reporting by Contractor
THANK YOU