Utilities Management Agreement – Ambrosia
Utilities management agreement from developing strategy to appointment of provider, followed by 10 years of contract management/advice.
How JRP Solutions helped Ambrosia
JRP were appointed by Premier Foods to analyse its utilities arrangements and to identify the most efficient, and effective way to manage the organisation’s 6 service lines. The boiler house management was already contracted out, with the other 5 services being managed in-house.
JRP worked with Ambrosia to identify its objectives and followed a very robust 20 step plan from data gathering to final appointment of outsourcing partner. The plan identified outsourcing of all 6 service lines as the most efficient and effective utilities management strategy. From 12 organisations that expressed an interest in providing the services, following analysis across a range of factors including culture, four were selected to tender. JRP put these four through a rigorous Provider Audit to determine quality of service to compliment the cost appraisal, so determining value.
The agreement negotiations were planned using an MDO/LAA (Most Desirable Outcome/Least acceptable Agreement) matrix, and JRP managed the appointment process as one of the three negotiators including Ambrosia Legal Counsel and the site Engineering Manager.
Subsequent monitoring and on-going management of the contract by JRP included an annual Provider Audit and a continuous improvement programme was also put in place to incentivise the provider to generate and implement ideas. To incentivise continual improvements further a robust but simple two step approach was put into place for the raising and approval of business cases.
In addition to the £250,000 annual savings achieved through the new utilities management agreement, Ambrosia experienced a number of other significant benefits including:
- An effective FM Partner risk/reward scheme against specific KPI’s ensure on-going improvements
- Improved energy efficiency
- Clearly defined areas of responsibility
- Reduced emissions
- Reallocation of engineering resource to production
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