BPA Parking Management and Associated Services Contract

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Project RECiPE: Communication Plan
Parking Management and
Associated Services Contract.
A better way to do business…
BPA Parking Management and Associated Services
Contract - a better way to do business…
“We hope that within 3-5 years all business, organisations and local authorities using
private contractors to manage parking and associated services will also use the BPA
model contract.
“By standardising contracts, we can help boost confidence in parking enforcement. By
offering quality measurement, we hope that the private parking enforcement industry can
be seen as part of the parking solution, not the problem.
“Better training and the model contract should lay to rest the criticism that decriminalised
parking is more about collecting revenue than controlling parking.”
Patrick Troy, Chief Executive, BPA
Focuses on
qualitative
performance
measurement, such
as staff training and
correct issue of
tickets
Discourages
financial targeting
of contractors,
particularly based
on ticket issue
numbers and
incentives or
bonus schemes for
staff which are also
based on ticket
numbers
Encourages
standard training
to be undertaken by
all enforcement
contractors
Emphasises
parking
enforcement for
traffic
management
purposes, rather
than for revenue
raising
Recommended in
Guidance to the
Traffic Management
Act and by the
House of Commons
Select Committee
BPA Parking Management and Associated Services
Contract - a better way to do business…
SNAPSHOT
Many Local Authorities have OUTSOURCED Parking
Enforcement to Private Contractors
Local Authorities ‘ABDICATES’ responsibility for Parking
Enforcement
Consequence
Private Contractors are seen to be acting INDEPENDENTLY
and in their own interest
Private Companies ‘PROFIT’ from Parking Enforcement!
BPA Contract
STANDARDISES the delivery of parking services
Provides Greater TRANSPARENCY
BPA Parking Management and Associated Services
Contract - a better way to do business…
SNAPSHOT
There is no standard contract or shared set of rules
Consequence
Local authorities are left open to criticism and challenge through disparity
BPA Contract
Encourages like-for-like measurement of services
BPA Parking Management and Associated Services
Contract - a better way to do business…
SNAPSHOT
Bespoke contracts are expensive
Consequence
Local authorities are not seen as offering best value for public money
BPA Contract
Focuses on value and quality
BPA Parking Management and Associated Services
Contract - a better way to do business…
SNAPSHOT
Bespoke contracts can be out of date before the end of their fixed term
Consequence
New technology is often only introduced as part of a re-tender – this could mean a 5 year wait
BPA Contract
Encourages innovation and continuous improvement throughout the contract’s lifespan
BPA Parking Management and Associated Services
Contract - a better way to do business…
SNAPSHOT
Public/media criticism of parking enforcement services has grown
Consequence
This is often interpreted as problems with the contract – including target setting by the local authority, and
creates suspicion of wrongdoing
BPA Contract
Reduces confusion by shifting focus from quantative to qualitative measures
The Challenge:
• encourage best practice within the
industry
• improve quality and standard of
service of the parking enforcement
sector
• improve staff retention, training
and personnel support
• encourage like-for-like
measurement of services
The Solution
The BPA Model Contract is based on key
principles:
• a partnering approach, founded on openness and
trust
• a sharing of risk
• performance related payments linked to accurate
measurement of performance through Key
Performance Indicators
• incentives for service providers to seek out
innovative ways of reducing target costs
• employing appropriately qualified CEOs who are
motivated, well trained and suitably remunerated
The Contract:
allows the local
authority to
determine the
scope of
enforcement
features core KPIs,
which can be
tailored by the
local authority and
worked into the
contract as a
phased approach
to the service
simplifies financial
arrangements
between a local
authority and
enforcement
provider by fixing
costs
sets out clear
guidelines for
dispute
management
The Contract (continued):
allows the local
authority clear
comparison between
providers at tender
stage and to measure
performance following
contract award on an
agreed basis
provides a clear
comparison on quality
issues – eg training
and remuneration
sets out an ‘open
book’ agreement
between local
authority and service
provider
includes change
management
principles, to allow
both local authority
and provider flexibility
to the benefit of
service provision
Examples of Quantity Focused
Core KPIs (Old Contracts)
•
PCNs - numbers
•
Clamps - numbers
•
Removals - numbers
•
Defaults
Examples of Quality Focused Core KPIs
(Model Contract)
• effective parking enforcement •
• good quality, motivated and
informed CEOs
• issue of good quality PCNs
•
•
• level of compliance
• car pound operations
•
•
clamping and removal
operations
abandoned vehicles
full and timely reporting
of all defective
lines/signs
police liaison
administrative
procedures
Remuneration
CONTRACT SUM
TARGET COSTS
(Direct Costs)
Subject to
regular audit and
assessment
OVERHEADS
PROFIT
Subject to
monthly measurement of
Quality of Service
through KPI s
Item
Type
Description
1
Contract Manager/Assistant CM
2
Supervisor
3
Parking Attendants - Senior
4
Parking Attendants – Basic
5
Admin. Staff inc. Quality and Monitoring
6
Pound Manager
7
Pound Admin/Counter Staff
8
Drivers Removal Truck
9
Drivers Clamping Van
10
Onboard Parking Attendants
11
Suspension Staff
12
Counter Staff
13
CCTV Operators
1
Premises/Base
2
Pound-Utilities Only
3
Telecommunications
1
IT Hand Held System
2
Radio/Telecoms
3
General Office Equipment
4
Uniforms and Associated Equipment
5
Vehicles – Trucks
6
Vehicles – Vans
7
Vehicles – Cars
8
Vehicles – Two Wheelers
9
Clamps
Materials
1
Stationary and Documentation
Including
delivery,distribution and
removal as necessary
2
Fuels/Oils/Greases
3
Cleaning
Labour and Staff
Rates to coverall oncosts including but
not limited to benefits,
NI, travel costs, etc
Premises
including all
associated costs
Equipment
to include all costs of
leasing repair,
maintenance,
consumables,
replacements,
etc
Quantity
Annual
Rate
ANNUAL TARGET COST
Maximum % Addition for Performance Related Payment
%
CONTRACT SUM
Annual Target
Cost
Cost
Schedule
Key Performance Indicators
• Focus on the key service deliverables, which ensure
that a good quality service is delivered.
• Reward good performance.
• Provide incentives for achieving and maintaining
performance.
• Can be reviewed annually and revised if needed –
making them flexible over the life of the contract.
Sample Key Performance Indicators
•
Effective parking enforcement
– Coverage of patrol requirements
– Minimum number of deployed CEO’s
– Rapid response unit
•
Good quality, motivated and informed CEO’s
–
–
–
–
–
Initial training
Regular assessments of training
Standard of presentation
Complaints
Absenteeism and turnover of staff
Key Performance Indicators
• Issue of good quality PCNs
– Cancellations due to CEO error
– Void tickets
• Customer services and Penalty Charge Notice processing
– IT systems
– Customer services
– Banking
– Penalty Charge Notice processing
Key Performance Indicators
•
Removals/Clamping
– Abandoned vehicles
– Nuisance vehicles
– Refunds of removal fees
– Speed of de-clamps
•
Other areas
– Cash collection
– Machine maintenance
– Car park management
Performance Related Payment Mechanism
PRP starts at +2 Bits
until performance data
is available.
Maximum PRP
+6
This line shows what happens if the Service Provider
meets all targets as specified every Month.
To maintain +6 Bits, the Service Provider must continue to
meet KPI targets as specified,
+5
Otherwise the PRP goes down one Bit per month
(down to Zero, then 2 Bits per month)
+4
+3
+2
+1
Bits
The KPI target rises over the life of
the contract
In Month 4 et seq., the performance
related payment goes up or down
each Month, depending on whether
performance targets are met in the
previous Month.
The Service Provider must do more
to maintain the PRP.
0
-1
-2
-3
-4
-5
-6
Minimum PRP
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
Months
Mont
hs
This line shows what happens if the Service
Provider fails to meet targets.
Bits as necessary deducted from PRP due to
Service Provider.
If the payment falls below zero, then Bits are
doubled, that is, 2 Bits are added or deducted
in any Month.
Other management action instigated.
Using the Contract
• Annual Licence Fee
– £500 for Members
– £950 for Non Members
• Term
– duration of contract between
licensee and service provider
Using the Contract:
•
•
•
•
•
•
•
•
•
•
Hackney London Borough
RB Kensington and Chelsea
RB Kingston upon Thames
Brighton and Hove City Council
Dept for Roads, Northern Ireland
Epping District Council
Worthing Borough Council
Watford Council (incl. Three Rivers and Dacorum)
Waltham Forest Council
+ others
Using the Contract:
Hackney London Borough Council
The emphasis of the new contract, which began in September, is
on the quality of tickets issued, said Jessica Crowe, executive
member for environment. Four months on, 'the number of
complaints is going down'.
Surveyor Magazine, January 2005
Using the Contract:
“As a result of [the contract] a partnership has evolved where there is an
honest and open approach to resolving problems and creating
opportunities. It has also enabled both parties to develop and improve the
way the contract is run, to increase efficiency, and provide a better service
to the general public.
“On-going training is actively encouraged and the use of key performance
indicators ensures that standards are not only maintained but will improve
over the years.”
Corporation of London, operating a contract similar to the BPA Parking
Management and Associated Services Contract
Obligations on Local Authorities
• Provide a clear definition of policies and aims.
• Embrace a partnership approach.
• Share information with the Service Provider.
Benefits summary:
•
•
•
•
•
•
•
change of focus
quality/customer driven
flexible
innovative
continuous improvement
positive marketing
improve enforcement
efficiency
• improving working
environment
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