Private Sector - Hub Concept Note (Draft v3 021214)
1.
Background
It is widely understood that there is a significant and growing demand for
engineering and project management expertise, particularly in urban disaster.
However, previous efforts to deploy private sector engineering and consultancy
expertise alongside Humanitarian Agencies in an urban emergency have highlighted
a number of challenges.
The World Economic Forum initiative resulting in the Engineering & Construction
Disaster Resource Partnership (WEF, Nov 2010) confirms this view. It has provided a
high level framework for cooperation but not yet resulted in a reliable, scaleable
resource. More recently RedR UK (Ready to Respond, 2014) convened a workshop
with the specific intent of exploring the practical issues of deployment in order to
facilitate more effective private sector involvement. A key conclusion from this
meeting concerned the need for a collaborative and structured ‘framework’
operating between key actors.
The 2014 DFID Workshops on Humanitarian Response to Urban Crisis (DFID, 2014)
also recommended greater engagement with the private sector in order to:
•
•
•
Access specialist technical expertise, networks and data;
Provide surge capacity or remote technical support and mentoring;
Implement infrastructure or market-based approaches.
2.
Purpose and Outcome
The purpose of this concept note is to begin to address how private sector
engineering consultancy firms could more successfully engage in the immediate
post-event humanitarian effort in urban areas, and contribute to recovery efforts.
The note summarises, key motivations for private sector involvement, the focus for
attention and highlights key challenges. Following this, the concept of a Private
Sector Engineering Consultancy Hub (‘the Hub’) is introduced. It is intended that this
note is used to support engagement with key actors. It is expected that such
engagement will help test and further develop the concept to the point of
implementation.
This concept has been developed in the first instance by a working group comprising
a limited number of private sector firms (Annex A). The intention is to broaden the
group if and when there is sufficient support for the concept.
3.
Motivations and Capabilities
There is an increasing number of disasters in urban areas, and the technical
knowledge and expertise to facilitate rapid recovery resides mostly in private sector
engineering and consultancy firms. Urban areas have not historically been the
domain for humanitarian agencies (INGOs, UN Agencies, donors) and likewise postdisaster contexts have not been the domain of private sector engineering and
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consultancy firms. There is a need to marry the respective capabilities of each party
for the benefit of the humanitarian effort.
Private sector firms can clearly offer a range of skill sets within the urban
environment, including, strategic advice, project and programme management and
technical expertise (design and construction). In addition, many private sector
engineering and consultancy firms will have local knowledge of how cities operate,
and have an ability to mobilise local skills.
There is willingness from private sector firms to supply services and meaningfully
contribute to humanitarian action in urban areas, and not simply for reasons of
corporate social responsibility (CSR). Indeed, if CSR were the prime driver, then
collaboration is unlikely to move beyond piece-meal interventions.
Meeting the humanitarian agency demand will require moving beyond the ad-hoc
release of staff (on voluntary/pro bono secondments), to the fuller engagement and
deployment of private sector engineering consultancy services, project /programme
management expertise and urban planning services. Matching supply and demand
will need to be facilitated through a common framework and formalised commercial
arrangement (see section 5 & 6).
Working in collaboration provides a significant opportunity for maximising private
sector involvement. Under this structure, the scale of response can be better
matched to the scale of event, accepting that some challenges need to be overcome.
There is also a preference and benefit in doing this collectively, rather than
individually, to meet the growing demand. There are a range of actors and collective
initiatives by humanitarian agencies seeking greater engagement with and access to
the expertise in engineering consultancy firms (Annex B).
4.
Focus for Attention
Given the different phases of humanitarian response it is important to recognise
where there is both a demand for the skills and expertise from the private sector and
challenges in mobilizing these services. Figure 1 highlights four phases, including,
Preparedness, Emergency Response (or Relief), Recovery, and the Reconstruction.
The conclusion from discussions within the current private sector working group is
that the most challenging area lies within the immediate post event disaster relief
and recovery phase, notably in an urban setting. This phase is currently typified by
the need for the rapid mobilisation of resources and expertise into a troubled zone.
The emergency response phase is where humanitarian agencies have a comparative
advantage as they are geared up to mobilise and deploy resources quickly to meet
life-saving needs (food, water, shelter, sanitation). In urban areas, technical
expertise is needed to assist with contextual assessments (damage, needs, local
capacity etc.) in order to enable the immediate response phase and determine
strategies that promote rapid recovery.
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Engaging in Immediate Response and Recovery efforts poses significant challenges
for the private sector (see below). To date, private sector involvement has typically
been piecemeal with reliance on individuals, either through personal volunteer
commitment or limited staff secondment. This provision does not provide the
problem led response that is needed, nor ensure that appropriately qualified and
experienced staff are deployed. In contrast, the Preparedness, on-going Recovery
and Reconstruction phases are afforded time for structured procurement and
mobilisation of private sector expertise.
Preparedness and DRR
Reconstruction and
Development
Rapid
Recovery
Immediate Response
Figure 1
Phases of Humanitarian Response to an Urban Emergency
5.
Specific Challenges for Private Sector Involvement
Understanding the specific challenges for private sector involvement in the Relief
and Recovery Phase provides the starting point for developing future options. These
are briefly listed below:
Funding and Coordination
• Funding may be from multiple donors with inability to leverage adequate scale of
response;
• Humanitarian Agencies are typically uncoordinated without a common platform
for engaging with private sector consultancy firms;
• The demands for technical expertise are typically undefined, with a reliance on
requesting people rather than a problem led solution;
• CSR budgets are inadequate for the scale of engagement needed.
Commerciality
• Private sector consultancy firms that attract the most expert and relevant staff
can only do so because they operate on a profit making basis;
• A reasonable return on investment is needed to ensure the work becomes an
attractive and sustainable part of a firms overall project portfolio;
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•
•
•
Commercial organisations need to be formally contracted to provide a service
with an agreed scope of work, clearly assigned liabilities with appropriate
insurance and with health, safety and security fully managed;
Deployment of staff can’t be allowed to unduly disrupt current operations,
otherwise firms may be open to contractual claims from existing clients;
Private sector firms can only absorb very limited non-recoverable costs.
Procurement
• Humanitarian agencies have limited experience of partnering with private sector
companies;
• Lack of clarity over who the contracting entity will be, leading to delays;
• Responding to an event requires the ability to contract quickly;
• The liabilities associated with engineering services need to be understood and
contractually defined.
Resource Management and Deployment
• Private sector operate lean resourcing with staff all deployed on commercial
projects and therefore have limited if any ‘bench’ resource availability;
• Current ‘roster’ led and ‘volunteer’ approaches focus on individuals rather than
capabilities and services and does not enable deep enough resource deployment
to make a real difference;
• Potential resources would need to be actively managed pre-event;
• Individual firms with available staff may not be most suitable for current
solution.
Safety and Duty of Care
• All commercial companies have a primary duty of care for staff in their
employment which must be maintained for any secondments;
• Staff must be suitably trained and prepared for any secondment.
6.
The Concept – Private Sector Hub
In overview, the proposed concept that could best solve the challenges and meet the
need is the formation of a ‘Hub’ of private sector firms that could act as a single
entity and point of contact for the purpose of responding to a humanitarian relief
event, and addressing the needs of humanitarian agencies, and potentially
government. By acting in unison, the Hub would have the best opportunity of
leveraging skills and resources to meet specific technical challenges, particularly in
urban areas. Importantly, the Hub would be in existence and prepared before an
event occurred and would therefore be best placed to provide immediate and
meaningful response. A schematic is shown in Figure 2.
To make this work a number of arrangements would need to be in place:
1.
2.
3.
Create clarity a single contracting entity / ‘client’;
Identify potential Hub partners, and the range of services they might require;
Development of a Hub ‘entity’ (bespoke or existing);
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8.
9.
10.
11.
12.
Demand
Supply
DfID
Firm 1
Red R
Firm 2
UNOPS
START
Firm 3
DEC
Firm 4
Others
Consultancy Hub
Figure 2
Collective Initiatives / Operational Agencies
Schematic of Private Sector Engineering Consultancy Hub
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Emergency Event
5.
6.
7.
Develop a collaborative arrangement with collective initiatives /
humanitarian agencies, building on the coordination that already exists;
Agreement on a lead Hub partner organisation and permanent secretariat;
An Alliance Agreement between parties (including governance arrangements)
A commercial Framework contract between the ‘client’ and the Hub partners
with pre-agreed contractual terms and conditions. This would allow
individual ‘call-off’ contracts in response to specific requirements
Procurement of the Hub Framework services on commercially acceptable
terms in order to ensure attractive competition for internal resources
Advance funding after framework procurement to set-up necessary internal
structures, governance board and management capabilities
Development of a single Hub operating model covering resource
management, training, Health & Safety, legal and insurance matters, HR and
staff deployment, project management and accounting
Authority to a Hub Secretariat for areas of on-going activity including,
funding, partnerships/clients, legal/contracts, knowledge management and
communications
Lead operations manager within each Hub consultancy firm with full
accountability and authorization
Humanitarian Agencies
4.
7.
Next Steps / Action Plan
The following actions will help determine whether the concept is workable:
1.
2.
3.
4.
5.
Meetings with prospective clients and collective initiatives (Annex B) to test
the concept and explore potential for seed funding
Hub Working Group partners to seek endorsement from own organisations
and develop a Memorandum of Understanding (MoU) to frame collaboration
in advance of Hub contract
Understand the specific areas of technical demand from INGOs and collective
initiatives
Develop consultancy firm service offering
Develop Hub concept further including operations and commercial model
References
Hyogo Framework for Action 2005-2015: Building the Resilience of Nations and Communities
to Disasters. January, 2005, Geneva: UNISDR.
World Economic Forum, 2010. Engineering & Construction Disaster Resource Partnership - A
New Private-Public Partnership Model for Disaster Response, Nov 2010.
DFID Workshops on Humanitarian Response to Urban Crisis, Workshop Report, July
2014.
Ready to Respond 2014. Addressing Technical Gaps in Urban Disasters. Minutes
from meeting held on 14th May, 2014.
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Annex A – Private Sector Working Group
Following the Ready to Respond workshop in May 2014, a Private Sector Working
Group was set up comprising patrons of RedR, below, to develop the Hub concept.
An independent firm of designers, planners, engineers, consultants and technical
specialists offering a broad range of professional services. Employing over 10,000
staff, working within nearly 40 countries and across a full range of market sectors.
An independent full service provider of consulting, design, design-build,
construction, operations, and program management services. Employing over
26,000 staff on six continents and in over 70 countries. Partnering with clients in
energy, water, environment, nuclear and transport infrastructure.
Design led civil and structural engineers in the built environment. Employing over
100 members of staff operating from three offices based in Wimbledon, Central
London and Nottingham. Focusing on residential developments, commercial,
healthcare, hotels, education, leisure, cultural buildings, regeneration and retail
schemes throughout the UK and overseas.
A multi-disciplinary engineering, design and consultancy company working across
buildings, transport, energy, environment, oil & gas and management consultancy
markets. Employing over 11,000 staff within 200 offices and across 22 countries.
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Annex B – Collective Initiatives and Platforms
The following are currently known collective initiatives whose programmes
potentially provide an interface and ‘client’ between the private sector Hub supplier
and humanitarian agencies.
DFID Conflict, Humanitarian and Security Department (CHASE)
Goal is to prevent conflict and reduce poverty in fragile states, deliver world class
humanitarian assistance, help poor countries be more resilient to disasters and
support justice and freedom from violence, particularly for women and girls.
Developing an ‘Infrastructure Platform’ to deploy staff to both carry out assessments
and implement critical infrastructure repair projects immediately following a crisis.
The Disaster Emergency Committee (DEC)
The DEC brings 13 leading UK aid charities together in times of crisis: Action Aid, Age
International, British Red Cross, CAFOD, Care International, Christian Aid, Concern
Worldwide, Islamic Relief, Oxfam, Plan UK, Save the Children, Tearfund and World
Vision; all collectively raising money to reach those in need quickly.
Ready to Respond: Addressing Technical Gaps in Urban Disasters (RedR)
Ready to Respond - a three year programme funded by Lloyd’s Charities Trust and
delivered by international disaster relief charity RedR - is designed to ensure that
people and communities affected by disasters can be quickly supported by trained
professional experts from the private and humanitarian sectors.
START Network
Lead by ActionAid with Consortium Members including, ACF, Christian Aid, CAFOD,
Care, International Medical Corps, Islamic Relief, Muslim Aid, Plan, Save the Children
and Tearfund and Technical Partners including, Communicating with Disaster
Affected Communities Network (CDAC-N) People in Aid. A 3 year programme to
transform ‘surge capacity’. Includes three key elements, platform formation, pilot
projects and training, learning and sharing of good practice and resources – includes
working with the private sector.
Disaster Risk Reduction and Recovery (UNOPS)
Programme to build capacity for post disaster infrastructure assessments (identifying
need, understanding how to assess and building capacity to deliver)
WASH Cluster
The Global Water Sanitation and Hygiene Cluster, or Global WASH Cluster (GWC) is a
partnership grouping 32 partners and aiming at improving the coordination and the
humanitarian response in the WASH Sector.
SHELTER Cluster
An Inter-Agency Standing Committee (IASC) coordination mechanism that supports
people affected by natural disasters and conflicts with the means to live in safe,
dignified and appropriate shelter. The Shelter Cluster’s scope includes all activities
related to achieving the right to adequate housing with a humanitarian focus.
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