Christchurch Integrated Government
Accommodation Project
Market Brief
13 February 2013
Agenda
• Purpose of the Briefing
• Background
• Objectives of the project
• Business Case and Procurement Process
• Wellington example
• Timelines
• Approval process
• Government requirements
• Building Performance Specifications (outline)
• Key design elements
• Overarching government themes
• Summary
Purpose of the Briefing
• To highlight what the Crown’s requirements are;
• The procurement and business case process that
will be applied for the CIGA project;
• Indicative timelines; and
• Questions and answer session so all parties are
better informed in relation to providing office
accommodation for government agencies based in
Christchurch.
Background
• Government has the Christchurch rebuild as one of
its top four priorities for this term in office
• Government has committed to returning to the
central city to support the rebuild of the CBD
• Chief Executive of the Ministry of Social
Development (MSD) given Functional Leadership
(Property) mandate for Christchurch
“agreed that the Chief Executive Ministry of Social Development sign
off on all departmental property decisions in Christchurch. This is to
cover both decisions in relation to the Christchurch CBD (office
accommodation for regional management and corporate support
functions) and the wider service delivery network”
Background (continued)
• Role of PMCoE
• Established in April 2011 to drive efficiency and effectiveness
gains in property management across Departments and
Crown Agents.
• In October 2012 given greater mandate by Cabinet, to
include:
• mandatory property principles, standards and guidelines
• mandatory all-of-government procurement for property related
goods and services
• sign-off by the functional leader on tenure decisions
• sign-off by the functional leader on biennial property plans, and
• compulsory adoption of a common information system.
• CIGA project represents a tranche of this mandate
Background (continued)
• Interim short-term solutions occupied by government
agencies after the earthquakes.
• Most are not desirable for long-term occupation
• Multiple sites = inefficiency and ineffectiveness
• Lease expiries vary between 2013-2019
• Need to align to long-term solution
CIGA Project Objectives
• The Objectives for the CIGA Project are:
• To provide an enduring office accommodation solution for the
participating agencies in Christchurch
• To optimise the use of office space leased by participating
agencies in Christchurch
• To minimise the whole-of-life cost per work point for office
accommodation leased by participating agencies in
Christchurch
• To improve the flexibility and responsiveness of the Crown’s
property portfolio
• Utilise the property solution to better enable agency, sector and
All-of-Government business outputs
• To provide and maintain safe standards of buildings for
government employees in Christchurch
• To promote the economic recovery and rebuild of the
Christchurch CBD
Procurement and Business Case Process
• PMCoE led, agency supported single procurement and
business case process
• Procurement
• Request for Information (RFI) used to inform process (Nov/Dec)
• Single stage Request for Proposal (RFP)
• Trial closure for initial assessment; allow subsequent
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modifications/ enhancements to proposals before final closure
and assessment
Short-list of suppliers from RFP to develop collective options
Cost-benefit analysis of collective options
Negotiations with preferred suppliers will commence once
Cabinet approval given from business case
Short-list will provide redundancy if negotiations are
unsuccessful with a preferred supplier
• Business Case
• Follows Treasury’s Better Business Case process
• Procurement process integrates into business case
Wellington Example
• Joint procurement and business case process for
MSD, MoH, MBIE, MoE and Crown Law Office.
• Status Quo: 124,447m2, Preferred solution:
87,522m2 (30%)
• Significant cost avoidance for participating agencies;
some projected to realise baseline savings over 20
years
• Improved building safety and business continuity
capability
• Functional Leadership ICT and Procurement
integration
• Greater commonality and flexibility
Indicative Timelines
Work Stream
Deliverable
Timeline
(a)
(b)
(c)
Procurement
Procurement Plan
12 Nov 2012
Procurement
Request for Information
20 November – 11 December 2012
Procurement
Market Brief
13 February 2013
Procurement
Request for Proposal (incl trial closure)
March - May 2013
Procurement
Short-list of suppliers
June 2013
Business Case
Selection of preferred solution
July 2013
Business Case
Internal approval of Cabinet paper and
business case
July 2013
Business Case
External review and approval by Cabinet
August 2013
Procurement
Negotiations with preferred suppliers for
Development Agreements and draft
Deeds of Lease
September – December 2013
Approvals Process
• Internal authorisation of the preferred suppliers
made by Steering Group (Deputy Chief Executive
level group from agencies), chaired by the project
Senior Responsible Owner (Marc Warner, MSD)
• External authorisation from central agencies
(primarily Treasury) and officials group
• State Sector Reform and Expenditure Control
Committee (SEC) approve the business case and
seek Cabinet endorsement
• Once negotiations are complete with preferred
suppliers, the Development Agreement can be
signed after joint Ministers approve final financial
authority for the terms agreed
Government Requirements
• Enduring office accommodation for 18 agencies
• May also require short-term decant space to support
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long-term solution
25,000m2 of enduring office space, made up of multiple
proposals
Govt expectations of 12-16m2 per workpoint (planning
13m2)
Located within the Christchurch CBD
Can be new build, refurbishments or existing space
Will consider mixed-use developments (e.g. retail/office)
Does not include other government-related projects such
as MSD/IR call centre / Justice and Emergency Services
Precinct etc.
Building Performance Specifications
Overview
The BPS was designed to optimise whole of life efficiency and effectiveness, maintaining
the best value for money throughout the life of the lease. The BPS focuses on
performance, as opposed to actual system and product type. Some key points:
Structural
Legislation and building code applies to standards. Specification focuses on straight, true
and level structures (walls, floors etc)
Interior Design
Specification of finishes being modest and fit for purpose. Lighting and acoustic
treatments being ‘modern but standard’
Mechanical
Heating and cooling performance based on a standard 21-22oC environment.
Preference for energy recovery and heat exchange plant incorporated. Flexible on
system and plant product types
Electrical
Full BMS with tenant access for monitoring and reporting. Tenant provided access
control system to include perimeter where Crown is sole tenant. Access to use roof for
plant and communications equipment
Energy
High performance double glazing, fully insulated shell preferred. Building energy use
less than 120kWh/sqm/p.a. Encourage energy efficient lighting solutions, such as
harvesting and LED (building energy use modelling). NABERS-NZ rating (preferably 3+ of
completed solution)
Key Design Elements
• Preference for large floor plates
• Good vertical and horizontal connectivity (site lines
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and access)
Efficient floor plates (minimise unusable space e.g.
core & columns)
Floor plates should have higher ratio of natural light
for work areas to darker core space for enclosed
rooms
Perimeter cabling vs dropper cables
Prefer higher NBS rating
Overarching Government Themes
• Modesty in aesthetics
• Larger and more efficient floor plates
• Good value for money
• Cost effective building services
• Flexibility in lease terms
• Focus on long-term occupation
• Opportunity to integrate fit-out
• Collaborative environment encouraging staff
interaction
Summary
• Government is committed to returning to the CBD
• We want a timely process to successfully complete
negotiations with preferred suppliers
• Working closely with CERA to achieve the best
outcome for both the Crown and the market
• Welcome feedback and comment
Questions?
External website: www.pmcoe.govt.nz
Point of contact:
Paul McKeefry
paul.mckeefry@pmcoe.govt.nz