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CORPORATE ASSET MANAGEMENT STRATEGY

2006

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Contents Foreword Purpose and scope of Strategy Principles on which it is based Asset Management Framework - Research and Development Plan - Capital and Revenue programmes - Procurement regime - Full-life Asset Management Plan - Asset Tracking Systems Supporting Framework - Organisational structure - System and processes - Budgets - Training Appendices : I - Asset registers - (a) property - (b) ICT - (c) Fleet - (d) AEU - (e) New Dimensions Equipment II - ICT strategy III - Response and cyclical maintenance plans (property) IV - Fleet maintenance plan V - Fleet replacement plan VI - Business Continuity Plan VII - Income and Charging Policy VIII - 10 year building and engineering works programme IX - Capital appraisal form/Revenue appraisal form X - Chief Fire Officers Association fleet maintenance and repair document XL - Schedule of DDA property and planning XII - Schedule of female facilities and adaptations

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FOREWORD For many years, the planning for the fire service was based around two key issues : the concept of fire cover and the focus on emergency response. Consequently, the way we planned and used our assets, predominately buildings and plant / equipment / vehicles, reflected these issues. This meant that we had fortress-like stations, designed to be more like ‘ships on dry land’ to reflect the naval heritage of the service; and located at the centre of concentric circles to be able to attend incidents that might never happen but nevertheless, providing reassurance and ‘cover’ in the event that they did happen. All of this changed dramatically with the Independent Review of the Service in 2002 and the subsequent Fire and Rescue Services Act 2004. The Fire and Rescue Service’s role remains one of responding to emergencies, but it is now a much broader range of emergencies to reflect the changing risks that face our community - the terrorist threat and climate change being key examples of this - although, there are many more inherent risks in the way we now live on a day to day basis. However, the fire and rescue service now also has a responsibility to reduce risk and prevent emergencies. It must work much more closely with partners and especially the community itself to achieve a safer community. For further information see our Corporate Plan/Integrated Risk Management Plan (IRMP) at http:www.cheshirefire.gov.uk. We must, therefore, fundamentally re-think the way we procure and use our assets to deliver this new agenda. We need to see fire stations more as community facilities, not simply workplaces; we need a range of different types of vehicles, plant and equipment, not only to address our wider range of fire and rescue work, but our work in communities and with partners. We need to use technology to become more efficient and effective and we need to ensure the assets of the Authority, and therefore the local tax payer, continue to provide excellent value for money in the way that they are managed. This strategy is the means by which we will achieve this transformation and modernisation of our approach to asset management.

Steve McGuirk Chief Fire Officer

Tony Hooton Chairman of Cheshire Fire Authority

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PURPOSE AND SCOPE OF THE STRATEGY Purpose : The purpose of this strategy is clear : To set out the approach to the full life cycle management of land, property, plant and equipment in order to maximise their advantage in delivering our Corporate Plan / IRMP. This strategy supports all of our corporate objectives, but, in particular, CS3, ie. “Ensure value for money and maximise investment in front line services”. Issues : As an emergency service, our statutory duty is to be in a position to respond 24/7, 365 days a year to the risks we have assessed as requiring an emergency response. We have no option of a “shut down” for maintenance or a period of refurbishment. Our emergency fleet and equipment must, therefore, operate to maximum, mission critical efficiency at all times and often in situations that place them under duress. When responding to fires every second is critical. When responding to road traffic collisions, our intervention must be both speedy and accurate to minimise the impact of often life-threatening injuries. The need to look holistically at how our back-office systems enable the delivery of these demands is critical. This includes ICT, vehicle maintenance etc. Scope : This strategy considers asset management from two perspectives:- (i) The strategic level to ensure overall delivery of all our functions. (ii) “On the ground” at an operational level to ensure day to day business continuity. Together, these two perspectives seek to maximise the lifetime value of our investment and, thereby, its community benefit in delivering our corporate vision. Principles upon which the plan is based : • The need to deliver Best Value to secure continuous improvement.

• Balancing quality and cost i.e. secure value for money in all procurement decisions.

• There must be accountability for the use of public assets.

• We must maximise the opportunities provided by the prudential capital regime.

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• Ensuring that the location and accessibility of assets enables the most effective delivery of services to the public

• We must look to more environmentally sustainable procurement and maintenance

solutions.

• We should take a long term view of our planned programme management of assets.

• We must satisfy our health and safety obligations to our employees, to contractors, visitors etc.

• Where possible, we should collaborate with other public sector and third sector partners to maximise value and community use of publicly funded assets and achieve economies of scale in purchasing.

• We should maximise the use of our facilities and increase efficiency, including

addressing under utilisation. • We need to respond dynamically to external factors e.g. Disability Discrimination

Act, E-government, home-working etc. • The priority for investment must be determined by our Corporate Plan/IRMP. • We must facilitate equality and diversity in employment and service delivery. • We should maximise the latent development value of existing assets to pump

prime future investment. • We should have regard to the opportunity cost of assets. • We should pursue every opportunity to secure efficiencies, both cashable and

non cashable. • We should achieve the best price reasonably obtainable when disposing of our

land, property and other assets.

• We should use our assets to lever in external funding where appropriate. The schematic overleaf gives a practical representation of how the strategy provides the framework to achieve these principles and the subsequent sections go on to explain further the component elements. Review: This strategy is intended to support our Corporate Plans/IRMP’s for the period 2006/11. It will then be formally reviewed.

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Performance management: During that five year lifespan, the success of this strategy in supporting the organisation will be reviewed quarterly by the Budget Management Board (officer level) and annually by the Authority’s Performance and Overview Committee (member level). Community Engagement : It is important that the views of service users and other community stakeholders are taken into consideration when the type, location etc. of service assets is considered. Informal soundings will be taken through the Performance Delivery Groups aligned to the eight unitary / district boundaries who have regular contact with key partners. Any more formal ‘consideration’ will be via the Service’s consultation panel “RESPONSE” . We also have specific arrangements within our community engagement strategy for engaging with minority ethnic group.

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Asset Management Framework (Strategies and Policies)

1. Research and

Development Plan

2. Capital and Revenue

Programmes

3. Procurement

Regime

4. Full Life Asset Management

Plan

5. Asset Tracking

Systems

Organisational Structure

Systems & Processes

Budgets

Training

UNDERPINNING

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1. RESEARCH AND DEVELOPMENT Research and development is an important facet of asset management for any organisation. In the Fire and Rescue Service, its importance cannot be over emphasised. Land and Property Most fire stations were built at least 50 years ago which is reflected in their location, design and facilities. The community fire stations of the future must, however, reflect the new responsibilities and functions of the Service. This can only be achieved through refurbishment or new build (where possible, funded either way by capital receipts). Innovative approaches from around the world and the UK must be considered. Many PFI new build projects in the fire and rescue service and wider public sector have revolutionised facilities management and we need to examine the potential in Cheshire. Environmentally sustainable materials and supplies must also be explored. Examples include the use of alternative and renewable power supplies, recycling water systems etc. Additionally, we must also consider more creative approaches to the way we utilise our land and property to embrace the partnership agenda and see our assets more as ‘community assets’. Fleet The repeal of the National Standards of Fire Cover has brought with it local risk assessment of operational incidents (severity and likelihood). As this new approach becomes embedded, it is becoming clear that the ‘operational unit’, which has traditionally comprised a fire appliance, is no longer the only appropriate unit to respond to the many different emergencies. Mini appliances, fire bikes and hybrid appliances are all being actively piloted in Cheshire as well as other areas of the UK. It has, and will remain necessary, to look at all practical alternative approaches to deliver our service and to ensure that maximum benefit is achieved from capital outlay. Similarly, in recent years we have built a fleet of risk reduction facilities – outreach stations, fire demonstration units, fire cadet vehicles etc. Again, we must continue researching and exploring approaches that help us reach out to the community in creative ways. Operational Tactics and Equipment In the light of new legislation and new responsibilities, global research into fire behaviour and associated changes to firefighting and other operational tactics, it is necessary to ensure that our operational equipment remains appropriate to fulfil our extended statutory functions and also to meet our health and safety obligations. We must also ensure we are aware and understand how state of the art technology can help us manage local risk. This also extends to our operational, personal protective equipment (PPE).

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ICT Our ICT strategy is based on detailed research regarding upgraded and new technology during the period to which it refers. However, within the life of the asset strategy, there is the need for ongoing R&D to ensure that the predicted activity set out in the strategy remains appropriate during the whole of its lifetime, to ensure that ICT can help transform and re-engineer our business processes.

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2. FULL LIFE ASSET MANAGEMENT (MAINTENANCE) This plan outlines our approach to : • Equipment • Fleet • Property, and • ICT Equipment The nature of the use of much of our equipment requires that its lifetime maintenance cycle comprises of much more than good stewardship to prolong its lifespan. There are specific requirements for the regular review and testing of operational equipment and an extensive safety regime which must be adhered to. Maintaining Operational Performance The inspection, testing and maintenance (including cleaning) of operational equipment is required in order to prevent equipment failure and to ensure that it remains safe and fit for purpose. Two types of risk develop if this system breaks down : • The performance of the equipment and its safety features will deteriorate to the

point where the user (and the casualty) are put at risk. • The people carrying out the maintenance, testing, cleaning etc. are put at risk. Neither is acceptable. Complying with Legislative Requirements The responsibility for the health and safety of employees at work rests primarily with the employer under a whole package of UK and European legislation. Broadly speaking though, there are four critical functions : • The provision and maintenance of a safe workplace • The provision and maintenance of safe plant / equipment • The provision and maintenance of safe storage and transport • The provision and maintenance of accurate records Under the ‘Safe Plant and Equipment’ provision there is a specific requirement to inspect, service and repair. Accordingly, we make individual employees aware of their responsibilities as they apply to assets, including PPE during induction / recruit training. To fulfil the other requirements in relation to plant and equipment, we have a rigorous testing regime where an appropriate type and frequency (risk assessed) of testing is selected. This test is then delivered by a combination of the following methods :

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• A general test and maintenance completed on station by operational personnel, to a timescale pre-determined and through risk assessment.

• Specific tests are carried out on station by qualified technicians, either in-house technicians or outside contractors, where required.

• Further tests and maintenance are carried out at the Service Workshop (normally on an annual basis).

• Equipment is taken ‘off the run’ and sent to specialists for maintenance, testing or certification, where appropriate.

The ‘industry’ option of a RTF (run to failure) replacement schedule is clearly unsuitable for an emergency service. The nature of being an emergency service means that the maintenance, service and examination of our equipment must, as far as practicable be geared towards eliminating preventable failure at an incident and maintaining maximum performance in a unpredictable, uncontrolled and stressful (both for people and equipment) environment. This context is important for our approach. In addition, we are also bound by : • Compressed gas regulations • Provision and use of workplace equipment regulations/Lifting operations and

lifting equipment regulations Frequency and Person Responsible for Testing These generally fall in the following headings dependent on the type of equipment and its use : Before operational use Staff on station Daily Staff on station Weekly Staff on station Monthly Staff on station Quarterly Staff on station or Support Technicians or outside

contractor 6 monthly Staff on station or Support Technicians or outside

contractor Annually Staff on station. Mainly this will the Support Technicians in

our Equipment workshop or off-site by contractor After operational use Staff on station. Occasionally Support Technicians Whilst the testing is fulfilled by Firefighters, the responsibility for managing and signing off the process is the responsibility of Watch and Station Managers. Liability To minimise our financial liability for rectification of defects in products we have bought, and under any employers’ or occupiers’ liability action brought against us, we must also : • Adhere to manufacturer’s requirements and recommendations as to maintenance,

to ensure that equipment remains ‘fit for purpose’ and covered by warranty. • Zurich Municipal (our insurers) also require testing certification for certain items

and will themselves conduct certain testing to verify the condition of equipment.

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With regard to New Dimensions Equipment - i.e. equipment provided by HM Government, primarily for use in responding to terrorist or other major emergencies - all testing, maintenance and replacement is the responsibility of the DCLG (including replacement equipment whilst the original is repaired). Our obligation is to insure this equipment for its use by our personnel outside of these specific situations. Recording A ‘Standard Test’ register is also kept on station and details of the completed tests are recorded in it. Past records are maintained for a period of three years and then moved to our archives for the further two years. Misplaced / Lost Equipment Where an asset is misplaced / lost, our policy is risk based and clear : • If the asset is critical, it will be replaced immediately from our central stores (and

the loss investigated by the unit manager) • If the asset is not critical, its loss will be investigated by the unit manager. The

outcome of this investigation will determine the action to be taken. Fleet We operate a maintenance and vehicle replacement programme which considers the whole life cost for the provision and maintenance of the front line blue light fleet, auxiliary support vehicles and community risk reduction vehicles. Our vehicle workshop operates to the nationally adopted, Chief Fire Officers’ Association maintenance and repair document, which sets out minimum standards and identifies best practice for the maintenance of fire service vehicles and associated equipment. The servicing frequency of the fleet is determined by both a time and a mileage based programme, which ensures the efficient use of the workshop staff and resources, whilst ensuring all service vehicles receive the correct level of preventative maintenance on a risk assessed basis. To achieve a cost effective and proficient maintenance cycle, operational data obtained from our transport department’s fleet maintenance software programme, is also analysed to determine the present and future servicing requirements of individual vehicles and associated equipment as they progress through their whole life cycle. This enables us to operate a fleet rotation policy to maximise the asset through its whole life cycle, which in turn, ensures the most effective whole life cost. Whilst the majority of our maintenance needs are met by the in-house workshop facility, we also make use of the private sector and out source the more specialist vehicles and equipment for both major component repair and mid-life refurbishment. This enables the in-house workshop to concentrate resources on the preventative and reactive maintenance needs.

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Contracts are in place for the support of the Service’s day to day operational running needs for the following services : tyres, bulk fuel, break down, glass breakage. These are primarily call off contacts (as detailed below). Both the tyre and fuel contracts are operated under the auspices of tenders set by Cheshire County Council transport services, who asses their value for money at the point of contract award. The provision of the Service’s lease car contracts are also operated through contracts let by Cheshire County Council. Areas of Transport / Workshops Out-Sourced Tyres ATS

Bulk fuel Martindales (Note: VAT exempt)

Major engine repairs LH Plant

Major transmission repairs Central Diesel

Vehicle glass RAC Windscreens

Repaint / refurbishment KC Autos – Thomas Hardies

Crash repairs KC Autos

Warranty repairs Main deals (specific)

The Service also maintains a small fleet of vintage appliances in its workshops. The cost of this maintenance (approximately £1500 per annum) is considered to be value for money on account of their ‘crowd pulling’ properties at community events where the Service is delivering fire safety advice. Property Our land and property holding is diverse, ranging from operational sites and safety centres to residential housing occupied by staff conditioned to the day crewing duty system and their families. Minor Maintenance We operate a ‘first response helpdesk’ facility for the reporting of day to day defects covering building, mechanical and electrical works. The aim of this helpdesk is to deliver timely and cost effective solutions to minor maintenance issues. All defects are recorded on a database which also records the contractor / in-house handyperson responding, and the cost of parts and labour. All contactors are selected from an approved select list (ie. their VFM and quality credentials are pre-checked).

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Major Maintenance We operate a 10 year planned maintenance programme for building and engineering work. This operates within the framework of our financial regulations. Depending on the contract value, contracts are offered to : • Contractors from a select list as above • Subject to three quotes being obtained • Following a formal tender process The 06/07 Building and Engineering Works Programme within the 10 year cycle programme is appended to this Strategy. We also own a number of specialist property assets eg. the LPG fuelled ‘hot fire’ training facility. The revenue costs of their maintenance is built into the initial capital appraisal and then included in base maintenance budgets and either carried out in-house or by specialist contractors as appropriate. ICT Our in-house ICT technicians, via a helpdesk, respond to all reported faults etc. They also conduct routine maintenance of our hardware infrastructure. Beyond routine maintenance, maintenance contracts are in place for all of our major hardware and software applications. These provide support to the Service on a risk assessed basis ranging from 24/7/365 for our command and control equipment; to 9-5 Monday to Friday for ‘routine’ office equipment. During 2007 we plan to review the provision of ICT services to the organisation and will consider all options including outsourced provision (private sector or partner organisation).

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3. ASSET TRACKING The tracking of each individual asset/piece of equipment/package of equipment from its initial purchase, through its service life to final disposal is an important component of the strategy. We are in the process of introducing and embedding “asset tracking” for our operational equipment. Under this project each item of equipment will be given an individual serial number and the details of the purchase price, supplier, purchase dates etc. will be stored on a database to allow easy retrieval of information. The same database will capture all the testing and maintenance requirements and results for each item. This will also extend to recording ‘whole of life’ costs as well as generating an automatic reminder for significant testing or other “events”. The recording will be achieved with the use of bar code readers with a number of pre-determined options programmed, which would automatically download testing and performance information onto the database. We have already invested in the hardware required (bar-code readers) and we are currently developing the appropriate software through our Aggresso system. Asset tracking through bar-coding is already successfully operating for all our ICT equipment.

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4. CAPITAL AND REVENUE PROGRAMMES It is impossible to plan on an annual basis for the replacement of high-cost capital assets. Therefore, projected replacement programmes aligned to asset life, have been developed to assist members and officers identify an outline capital programme over a three year cycle with the latter two years being projections. However, programmed replacement of lower value assets on a cyclical basis more readily aligns with the annual budget cycle. PROPERTY Premises (i) Capital

Our current approach to new or rebuild acquisition or major refurbishment is to self-finance utilising the capital receipts from the sale of existing sites and land. Our 06/10 programme to build 3 new stations, refurbish 4 others and build an annex to HQ is financed on this basis. Our vehicle/fleet/equipment replacement programme (Appendix V) is financed by annual bids to the capital programme. Similarly, dynamic responses to legislative or other requirements e.g. premises adaptations under the Disability Discrimination Act or adaptation of facilities for female staff, receive high priority in the capital programme bidding process and considerable adapt ion work has been carried out to date (See Appendices XI and XII). We tend to adopt a design and build approach because our experience has shown this achieves best value, although we keep this approach under review. Full capital appraisals are completed and submitted as part of the bidding process (Appendix IX) to both officer scrutiny and ultimate member scrutiny and prioritisation.

(ii) Revenue We operate a 10 year planned maintenance programme (Appendix IV) is our

2002 - 2011 programme) which is funded on an annual basis from the property “base budget” for maintenance. Exceptional additions to the programme are met through the revenue budget bidding process or, where appropriate, contingencies or balances / reserves.

The planned maintenance programme is risk assessed and prioritised

following property condition surveys (mechanical and electrical) conducted every 5 years.

In addition, we review the rateable value of our property every five years to

ensure that we are not paying in excess of the required sum. ICT The ICT Strategy 2002-2007 (Appendix II) (currently under review), was produced to support our IRMP/Corporate Plan and determines the resource allocation both in revenue and capital terms to the ICT function to deliver the projects set out within it. The costs of these have been estimated within the strategy. During the annual

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budget building process, fully costed bids on the projects (capital and revenue) are brought forward. The unique feature for the fire and rescue service is the proposed move to a Regional Control Centre for our command and control functions, as well as our operational radio and communications facilities. The level of uncertainty in terms of costs and timescales brings with it a level of risk and difficulty in planning. Much of our existing infrastructure is out of warranty with replacement parts in short supply. In addition to this capital and projects work, a base maintenance budget exists. Exceptional maintenance liabilities are met through the revenue bidding process (risk assessed). FLEET (i) Capital Our fleet replacement programme is at Appendix V. This has been prepared assuming “steady state” and outside of the

continuous development of our operational response requirement to meet community risk and the Cheshire Standards in our annual IRMP. Our community work, through its very nature, is increasing the use (mileage) of these resources. However, through the fleet rotation approach (detailed above), we are currently able to sustain a 13 year asset life of our fire appliances. This ‘steady state’ will be subject to variation as our R&D aligns with the modernisation agenda and leads to a mixed economy approach to ‘operational response units’.

In the light of the IRMP, an annual bid is made during the capital bidding

process to deliver the next year’s replacement. (ii) Revenue Our fleet maintenance programme is met from a ‘base maintenance budget’.

Exceptional maintenance liabilities are met through the revenue bidding process (risk assessed).

EQUIPMENT An asset life register of operational equipment exists, which guides and assists planning and identification of resources for replacement, be that through capital or revenue. (i) Capital Annual appraisals in respect of identified equipment resources are compiled,

sifted through the Senior Management Team and ultimately approved by members.

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(ii) Revenue In 2007, we anticipate moving towards a ‘managed’ Personal Protective

Equipment (PPE) system - whereby it will be the responsibility of a single provider to ensure adequate PPE, cleaned and fit for purpose, is available at all times to meet Service need. This will avoid the necessity of excess stock levels in varying sizes etc.

In-house maintenance, repair and replacement programmes in respect of both equipment (small gear) and Personal Protective Equipment (PPE), together with external maintenance provision aligned mainly to total care packages are met through the revenue bidding process.

Devolved Budgets During 2006/07 consideration will be given to which of these ‘base maintenance budgets’ might be devolved to stations/CFS centres and other operating units. Our rationale for devolving these budgets is clear: • Greater accountability; • Greater and speedier responsiveness (local suppliers); and • Potential for greater value for money (within an appropriate governance

framework of quotes etc.).

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ASSET MANAGEMENT IN THE ANNUAL PLANING AND BUDGET CYCLE Our approach is closely aligned to the HSG(65) model.

Functional managers

Senior Management Team

Policy Committee

CFA

Functional Managers

Draft Corporate Plan/IRMP (May / June)

Review property portfolio. ICT Strategy, Fleet and

Equipment replacement plan against local, regional and

national issues (July/August)

Costed option appraisals (including risk assessment)

(September)

Capital and revenue budget bids (including use of capital

receipts linked to policy options) (October / November)

Final Corporate Plan/IRMP. Final budget.

(February)

Implement asset projects identified

Monitor asset projects and spend Programme

Implementation Board/Budget Management Board

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5. PROCUREMENT Modernising procurement processes and partnerships is high on the agenda of modernising the Fire and Rescue Service; nationally, regionally and locally. Nationally As part of the modernisation of the Service, a National Framework has been produced. The Framework sets out government expectations and within this a draft National Procurement Strategy has been produced. The central plank of that strategy is a new company Firebuy Ltd. Firebuy is a non departmental public body created in March 2006. The role of Firebuy is to negotiate framework contracts on behalf of the Fire and Rescue Service nationally in areas such as vehicles, protective clothing and respiratory equipment. Firebuy will also take the lead in subsequent contract and service level monitoring. This will deliver efficiencies both from the economics of scale and from the lack of duplication of procurement expertise in processing large-scale procurement, often involving the European procurement regime. Significant progress has been made to date through the National Integrated Clothing Project and nationally negotiated insurance frameworks. Regionally In the context of the draft national procurement strategy, each region is required to have in place a Regional Management Board (RMB) and to regard procurement as one of its six regional work-streams. Greater Manchester Fire lead in the NW on this workstream. Each region must produce a regional procurement strategy and within that strategy make appropriate links with the local government regional centres of excellence for procurement (in the NW region – Tameside MBC). The NW RMB has commissioned PWC consultancy to audit current regional procurement activity and to work with the five Constituent Fire and Rescue Services to produce the regional strategy – the brief for this project also includes logistics and stores. This strategy will be presented to the RMB during the summer/autumn of 2006. To date, the main areas of regional collaboration in procurement have been vehicles and uniform. Locally In the context of the national and regional strategies, the Head of Business Improvement will produce a Cheshire Fire and Rescue Service Procurement Strategy, which will align with this Asset Management Strategy. It has not been possible to produce an effective strategy until this juncture as a consequence of uncertainty over the role of Firebuy and the direction of the regional procurement strategy. This strategy will consider greater use of Framework Agreements, call off contracts, procurement consortia and joint procurement initiatives. It will also embody our approach to sustainable and ethical procurement.

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At a lower level, the strategy will aim to reduce the volume (and, therefore, cost) of low level requisitions by ‘limited list’ procurement and purchase cards. Current Procurement Regime Property For the acquisition of existing properties (e.g. residential homes), we purchase through estate agents with Cheshire County Council legal staff transacting the deal. However, where a ‘new build’ is required, we appoint agents to act on our behalf to determine the user specification and/or design specification before obtaining tenders from interested developers. As a matter of course in any new build we would include sprinklers and smoke alarms. We would also seek to minimise environmental impact through considering the use of sustainable materials, recycling rainwater, solar heating and lighting, as well as ensuring recycling facilities exist for consumables. Equipment Following specification by the function or department (after R&D), quotes and tenders for ‘one-off’ purchases are sought in accordance with the Authority’s financial regulations. Where possible, repeat purchases (e.g. uniforms) are made through regional collaboration to achieve the economies of scale which result. Again, environmental considerations are brought to bear, including ‘buying locally’ to avoid adverse environmental impact from transport. Fleet We take advantage of the following framework agreements: PITO - Police Information and Technology Organisation This is a nationally tendered purchasing framework agreement between a variety of major vehicle manufacturers and regional police forces which is available as a framework agreement to other 999 emergency services. The agreement provides users with a route to purchase vehicles with preferential discounts being made available, covering a wide variety of vehicles along with guaranteed after service spares support. FSAC - Fire Service Appliance Consortium This is a consortium of Fire and Rescue Services that came together to purchase from a standard specification document for a type ‘B’ fire appliance and other operational equipment. By purchasing fire appliances through a consortium, we are able to reap the benefits of a genuine collaborative procurement process, whilst working closely with our procurement agents to capitalise on their technical expertise and purchasing power.

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FSPA - Fire Service Procurement Association This is a framework agreement similar in principal to the FSAC but one which has a large number of manufacturing chassis and body builder options available to choose from. The FSPA and FSAC consortia are working closely with the aim of moving forward as one group, in achieving the smooth transition to a national procurement strategy - FIRE BUY. In purchasing new vehicles, we give considerations to minimising emissions by: (i) The use of state of the art technology for exhaust gases - PERTEC. We have

moved progressively through the European vehicle emission levels – currently at level 3 and moving to level 4 in respect of our appliances.

(ii) Specifying low emission and carbon efficient engines. ICT In order to respond to our dynamic business need, most purchases are made through GCAT. However, to ensure that we are obtaining value for money we periodically compare prices between GCAT suppliers and our ‘preferred supplier’ to see who is the cheapest. Corporate Services We have historically purchased low level consumables and office furniture through catalogues at preferential rates negotiated when we were part of the County Council. These purchases will now be transacted directly through our web-requisitioning functionality of AGRESSO.

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Organisational Structure Roles and responsibilities The Head of Business Improvement (BIT) The Head of Business Improvement is CIPS (Chartered Institute of Purchasing and Supply) qualified and one of his staff is currently studying to become CIPS qualified. Key priorities within the job description of this newly appointed post include moving to a centralised procurement/purchasing function and specifically: • Review and overhaul the Service’s Procurement function in the light of the

national and regional procurement strategies to ensure that best practice and value for money are achieved.

• Develop strategic procurement … to ensure that purchasing opportunities are maximised.

• Develop and implement a Corporate Asset Management Strategy linked to the corporate procurement strategy.

Within the BIT team, a small number of staff are dedicated to procurement/asset management. This resource is currently under review. Functions and Departments It is the responsibility of every department and function to horizon scan for relevant product developments. This Research and Development is the first step in the procurement chain. In Emergency Response, two watch manager posts are dedicated to this function. Systems and processes In order to systematise asset management in a comprehensive, coherent manner, we have purchased an Integrated Management System. This system (a bespoke Agresso system for the Fire and Rescue Service), through a number of modules, integrates our financial system with our asset management system. This system has many benefits: i) It will result in efficiencies in productivity/reduce labour costs due to process

re-engineering. ii) Invoices will be scanned an automatically reconciled with orders. iii) There will be automatic GRN at the point of goods being delivered., iv) Spend will automatically be debited from budgets giving managers

dynamically accurate budget information (this includes both capital and revenue spend).

v) It will facilitate bar-coded asset tracking. vi) It will issue maintenance/testing prompts.

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Budgets

Asset Maintenance Budgets 2006-07

Category Account Centre Dept Narrative Amount Totals £ £ AEU 1802 2103 Mass Decontamination Responsive maintenance 30,750 AEU 1800 2106 USAR Planned maintenance 10,250 TOTAL AEU 41,000

ICT 3405 1400 ICT Op's Hardware maintenance 41 ,000 ICT 3405 1400 ICT Op's Network maintenance 31,775 ICT 3405 1400 ICT Op's Remsdaq maintenance 73,288 ICT 3405 1405 Comms Telephone system maintenance 35,875 ICT 3405 1405 Comms Radio scheme maintenance 85,075 ICT 3405 1408 Software Support Application software maintenance 102,640 ICT 3405 1103 SDC Contracted Services maintenance 9,686 TOTAL ICT 379,339

Property 1860 1200 Property Planned maintenance 400,908 Property 1860 1200 Responsive maintenance 63,972 TOTAL PROPERTY 464,880

Transport 2000 2200 Transport Repairs and maintenance 188,526 Transport 2000 2104 Road Safety Unit Repairs and maintenance - transport 2,050

TOTAL TRANSPORT 190,576

TOTAL ALL MAINTENANCE 1,075,795

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TRAINING The key responsibilities of the Head of Business Improvement include “to develop and provide procurement training throughout the organisation”. In this context, “procurement” includes all seven steps of the procurement chain. This training will also include any training around asset management as this strategy is implemented. This area is clearly an organisational priority and will be treated as such when it is considered by the Organisational Development Group (ODG) which allocates resources to prioritised training and development. Asset Management and procurement training could be delivered most effectively by inclusion in Phase II of the ‘Tip of the Iceberg’ governance training programme bespoke to Cheshire. The links between procurement and financial regulations, have been alluded to in the Finance section of Phase I. In the meantime, as part of the implementation of this strategy, the Head of Business Improvement will work with a group of super-users identified by each function/department to develop guidance and operating processes which will be widely disseminated.

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ASSET REGISTERS AS AT 30 JUNE 06: The following asset registers are held at Fire Service Headquarters:- (i) Property (ii) Operational Equipment and Associated Assets (iii) Fleet and Associated Ladders (iv) ICT (v) Stores stock At this point in time, there is no itemised asset register for HQ fixtures, fittings and furniture. The software has been purchased and the exercise of itemising on the database will begin shortly. 1. PROCESS FOR DYNAMIC UPDATING In time, it is proposed to integrate the asset registers (via Agresso if possible) onto a single database. Whichever database is used, it will be the responsibility of the relevant function/department to review their register at least quarterly to ensure its accuracy and to report any anomalies/issues to the relevant Deputy Chief Officer. These registers and any emerging issues will be considered on a half yearly basis by the Budget Management Board. 2. ENSURING APPROPRIATE STOCK BALANCE LEVELS: To avoid “writing off” stock which has become obsolete or otherwise not fit for purpose, it is proposed to move to “just in time” ordering/replacement which would reflect historical records of actual replacement. Many of our suppliers of components are prepared to offer this service, including auditing stock, applying a risk assessment and replenishing accordingly. T:\DCO’S\KF\CORPORATE ASSET MANAGEMENT STRATEGY 3