Public Private Partnership Contract

The dti Case Study

This contract is a Public Private Partnership (PPP) contract between the Department of Trade and Industry (dti) and the Rainprop Consortium, an empowerment group of which TFMC forms a part.

The details of this case study follow below. To download the dti Case Study in PDF format click here : to download Adobe Reader click here.

Project Title: Rainprop/dti PPP contract
Client: Department of Trade and Industry
Location: South Africa
Project Value: R2.7 billion

Project Description:
In terms of this partnership, Rainprop is contracted to design, build, finance and operate a multi-million Rand complex over the next 25 years. The Campus consists of seven buildings (about 63 000m2), housing 2 400 tenants, and was constructed in record time by the consortium. Building handover to the dti started in May 2004 and was completed by August 2004.

Significantly, facilities management was a key factor in the design, development and engineering specifications for the complex. This was an important consideration in ensuring a fit-for-purpose building that would operate efficiently over the next 25 years. This approach also ensured that facilities management service delivery can be managed to planned schedules and cost structures, built into the partnership agreement.

The contract is at a fixed price that will be escalated on an index linked to the national inflation rate. Should the FM service delivery not meet the stringent standards, the FM company will be penalised through a range of deductions. Service delivery is governed through a concept called the "experience delivery matrix" (EDM).

This matrix has subdivided the dti Campus in physical zones and linked agreed service level standards to each physical zone. A zone daily rate was calculated for each physical zone and service to be rendered. This zone daily rate is used to calculate deduction for sub-standard performance.

The consortium delivers a range of facility management services. The contract is managed by the EDC (Experience Delivery Company) on behalf of the consortium and also acts as an FM service provider.

The rendered are:

• Maintenance Services - maintenance, life cycle management and replacement of all equipment and infrastructure.
• Security Services - delivery and management of physical security services as well as management and maintenance of all electronic security systems.
• Retail Goods and Services - responsibility for finding and managing tenants.
• Cleaning and Hygiene Services.
• Indoor plants and gardening services.
• Waste management - normal office waste, hazardous waste and medical waste to be removed from the dti Campus.
• Parking and garage management services.
• Catering - supply of hot beverages through dispensing machines and water coolers.
• Conference and meeting room support.
• Workplace Services - all furniture management and repair, churn, office layout and space optimisation.
• Call Centre Support, Graphical Information System Management (GIS) and Building Management System - logged via the call centre and the GIS. The building management system monitors all security systems, lifts, energy consumption and the HVAC system. Monitoring takes place from TFMC's building control centre at Centurion, Pretoria.
• Utility Management - management of the dti Campus utility accounts.

Value-Added Achievements:

• Facilities management key factor in design specifications, ensuring built-in cost and operational structures.
• Fixed price contract linked to national inflation rate.
• Zone rates ensure delivery of quality performance.
• Full range of facilities management services delivered on site.