Request for Tender - Whole of Australian Government

Request for Tender

WHOLE OF AUSTRALIAN GOVERNMENT

FIN-PSCP-23 Whole of Australian Government Property Services Coordinated Procurement Arrangements – Property Service Providers

JUNE 2024

The Department of Finance (Finance), in its management of the Commonwealth’s property portfolio, is seeking Service Providers for its Whole of Australian Government (WoAG) Coordinated Procurement Arrangements for Property Services (the Arrangements), including Management, Leasing and Facilities Management Services.

Finance needs reliable partners to deliver integrated and streamlined quality services that innovate and enhance service delivery within this large and complex national property portfolio.

The Arrangements will continue to enhance how the Commonwealth manages its property portfolio by maximising value for money (VFM) through consolidated purchasing and providing greater flexibility for Entities changing service needs.

WHOLE OF AUSTRALIAN GOVERNMENT | CUSHMAN & WAKEFIELD

Developing strategies and delivering services to maximise VFM outcomes using the Commonwealth’s large bargaining and consolidated purchasing power in the market Reducing the property footprint and a ssociated costs through better asset management practice and portfolio optimisation Partners focused on service excellence, flexibility, and scalability with a customer mindset and who will support Finance’s property objectives and assist in its management of the Commonwealth’s property portfolio by:

Providing greater flexibility for Entities’ changing service needs.

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Workplace Package Selection

Cushman & Wakefield is tendering for each of the five Work Packages. Our dedicated team will be on hand to manage all Property Services across their appointed Work Package(s), acknowledging that Finance will only appoint a single provider for a maximum of two packages.

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PUBLIC SECTOR

DEPARTMENT OF DEFENCE

INFRASTRUCTURE NSW (BANGAROO) DEPARTMENT OF PREMIER & CABINET NSW

PROPERTY AND NATIONAL HEAVY VEHICLE REGULATION SA WATER

DEVELOPMENT NSW SCHOOLS

INFRASTRUCTURE NSW ROYAL WOPMEN’S HOSPITAL

SYDNEY OPERA HOUSE TRANSPORT FOR NSW

SYDNEY WATER METER READING

VICTORIAN PRIDE CENTRE VICTORIAN CORRECTIONAL CENTRES

VICTORIAN SCHOOLS

SOCIAL SERVICES

OFFICE ACCOMODATION

SURGE REQUIREMENTS

MINISTERIAL AND VIP SERVICES

HIGH-SECURITY SITES

SPECIAL PURPOSE FACILITIES

HEALTH FACILITIES

HERITAGE PROPERTIES

LAND HOLDINGS

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We recognise that each Work Package has unique characteristics, and we have the skills and experience to confidently manage these packages. Our 1,700 employees consistently deliver Management, Leasing, and Facilities Management Services to leased and owned portfolios in major cities, regional, remote, and very remote areas of Australia.

We also have historic and current experience servicing the Department of Finance, Ministerial and Parliamentary Services, ATO, Defence, ASQA, NDIA, Home Affairs, DFAT, and the Australian Federal Police through both our Integrated Facilities Management and our Project & Development Services Businesses.

PRIVATE SECTOR

AGL

AURIZON

AUSTRALIAN UNITY CARE HOMES BHP

COLES GROUP

HERSTON QUARTER

KODO COMMUNITY NAB

NATIONAL ARCHIVES OF AUSTRALIA (DOHA) MLC LIMITED NINE SANTOS

SA POWER

SUNCORP

TREASURY WINE ESTATE WESTPAC & UKRANIAN YOUTH ASSOCIATION

WESTPAC DATA CENTRE WOODSIDE ENERGY

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A Seamless and Fully Integrated End to-end Preporty Management Solution The breadth and variety of our leasing and facilities management experience will be applied to deliver high-quality, timely, and cost-effective services in a consistent manner across all Entities.

W H OWL HE O LFE AOUFS TARUAS LT IRAANL IGAONVGE OR NV EMREN MT E|N TC U| S HC MU SAHNM&A WN A& KWE AF IKEEL FDI E L D

STEP CHANGE TO ENHANCED SERVICE CAPABILITY

Through our experience delivering property-related services in Australia for 50+ major clients, Cushman & Wakefield has successfully incorporated Management, Leasing and Facilities Management Services into an end-to-end, fully integrated property services solution. services solutions to over 30 million sqm of property in Australia, of which over 1 million sqm is commercial office space, Cushman & Wakefield is a trusted partner. Our in-house services, tailored to match the WoAG requirements, demonstrate our ability to support all facets of the Management, Leasing and Facilities Management Services. With a proven track record of delivering integrated property

We are confident that our experience and capability will inspire confidence and trust in Finance and the Entities. Testament to the scale and complexity of our business is the cross-section of industries we service, including highly regulated industries such as energy and resources, prisons, hospitals, utilities, data centres, financial services, and logistics—ensuring we meet clients’ needs spanning the depth and breadth of regional, remote, and metropolitan Australia. We will leverage this experience to provide outstanding service delivery for Finance and each Entity while pursuing collaborative relationships with other Service Providers and the Strategic Property Advisor (SPA) to ensure the best WoAG outcomes.

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Maximising Portfolio Performance Through Robust Leasing Services

Our approach will realise cost savings and efficiencies by using space utilisation data to inform the strategy and consolidate Net Lettable Area (NLA) where appropriate. We will also maintain timely and accurate property details and data , supported by precise lease documentation, available to each Entity when and where required.

We will work in Finance and the Entities’ best interest to work with landlords, resolve issues and conflicts, and deliver WoAG outcomes . We will monitor all landlords, develop strategies to improve performance and ensure compliance and consistency with the WoAG Leasing Strategy to maximise quality and VFM outcomes , leveraging the work completed by the SPA.

STEP CHANGE TO ENHANCED SERVICE CAPABILITY

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Reliable, efficient, and cost-effective Leasing and Transaction Services focus on distilling and making available complex data that will allow Finance and Entities to make informed, intelligent portfolio strategy and accommodation planning decisions.

Finance and the Entities will have a dedicated team to provide all lease transaction services, including planning, approach to market, joint approach to market and negotiation and execution services with landlords on behalf of the Entities.

Our innovative solutions will maximise VFM and drive savings while improving existing Entity accommodation standards and minimising administrative burden for the Entities, using robust and accurate data

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Auditable AASB 16 framework and compliant processes We will provide fully compliant and externally SOC Type 1 audited reporting solutions and integrated systems to satisfy all reporting, planning and detailed reviews under a SOX-controlled environment. This allows us to provide detailed journals, monthly profit and loss, balance sheet reviews, exceptions reporting and detailed budgeting solutions. Cushman & Wakefield currently manage AASB 16 requirements for over 5,000 leases for NAB, Westpac, Suncorp, Property & Development NSW and Bapcor, with a total balance sheet value of over $15 billion . These include various lease types, rent reviews, duration, and other layers of complexity in line with our client’s AASB 16 policy requirements.

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Through our 10 States and Territories offices , Cushman & Wakefield provides comprehensive Facilities Management Services to a broad range of clients, including NAB, Westpac, Santos, Property & Development NSW, Department of Premier & Cabinet, Transport for NSW, Infrastructure NSW, Aurizon, Suncorp, Australian Unity, MLC, Sydney Opera House, Victorian Prisons, and Treasury Wine Estates. Testament to our commitment to clients and collaborative approach is that our average tenure is 13.5 years . Our partnerships with many of these organisations have seen multiple contractual renewals, some now in fifth-generation contract iterations. The diversity of our customers’ regulatory environments, geographical locations and asset classes means we are adept at navigating extremely complex (and sometimes competing) requirements and configuring our systems and services to suit. Delivering World-Class Facilities Management Services

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Fundamental to our approach will be aligning our seamless Services with Finance and the Entities operational needs to reduce administrative burden, optimise Commonwealth outcomes, minimise risk, and improve efficiencies using fair, equitable and transparent processes. Cushman & Wakefield will proactively plan and deliver the Facilities Management Services, ensuring we maintain and protect the physical property assets within each Work Package. We will ensure that properties are clean, safe, operate efficiently and open when they should be. Entity personnel, contractors and visitors to the properties will be able to occupy and work with minimal disruption to operations.

Responsive, transparent, and customer-focused Facilities Management Services concentrated on maintaining high asset standards, exceeding compliance requirements, reducing the cost of supply and contributing to a competitive and viable industry.

We will bring best practice learnings from across all our accounts and apply them for Finance and the Entities in a bespoke (but as consistent as possible) way best suited to each unique portfolio and property. We deliver innovation and collaboration and extract maximum value for Finance and the Entities. Our service delivery model will remain agile and capable of scaling over time to suit Finance and the Entities evolving needs, your changing portfolio requirements, and site usage.

TRANSPARENT & COLLABORATIVE

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Consistent Data Quality Through A Singular Client Portal - Triana

Finance and each of the Entities will receive timely, accurate and reliable data for the Services through our client portal - Triana. We recently invested significantly in our technology and reporting suites to improve the user experience and efficiency. Available 24/7/365 , Finance and the Entities can access a single source of accurate and meaningful data, metrics, and insights to inform critical

decisions. This access, clarity, and accuracy are fundamental to making informed and timely decisions, tracking trends, and providing insights that will offer savings and cost avoidance through analytics and industry best practices. The system is configurable and tailors access based on an individual’s role, permissions, and relevant data, ensuring it always complies with data security and confidentiality requirements.

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Integrated Lease, Transaction and Facilities Management Service Information Triana integrates fully with our business intelligence and reporting tools to provide Finance and Entities access to the required Lease and Facilities Management Service information (collectively the Property Services Data) when needed. The dashboards and data are customisable, meaning you see the information that matters to you. We can also provide helpful reporting, assisting Entities in understanding critical elements of the delivery, evaluating performance, and identifying opportunities to eliminate, reduce, or better control costs. As your single source of truth , Triana accurately captures and stores relevant property and operational and financial information in a consistent and easy-to-navigate format in real time. We will also align property data with Finances' high-level architecture and data field terminology, ensuring it is fully functional at the end of the Transition-In Period.

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A Smooth Implementation and Transition-in Period A successful implementation for Finance and seamless transition for the Entities is critical to ensuring continuity of service delivery with minimal disruption. As market leaders in best-practice transition processes, Cushman & Wakefield has dedicated in-house transition resources, systems, people, and processes to smoothly transition and implement the Services and Arrangements for Finance and the Entities with minimal disruption while meeting the WoAG Milestone Dates and effectively managing risk.

W H OWL HE O LFE AOUFS TARUAS LT IRAANL IGAONVGE OR NV EMREN MT E|N TC U| S HC MU SAHNM&A WN A& KWE AF IKEEL FDI E L D

CONSISTENT & PROACTIVE SERVICE DELIVERY

We will deploy Senior Transition leaders to manage project governance and the Implementation and Transition-In Services. They are supported by our Shared Services Leads, who ensure the required people, systems, processes, and procedures are in place and fully operational. Dedicated Implementation and Transition Resources

The Implementation and Transition-in Period is not just about transferring business as usual; it is about optimising Commonwealth outcomes, minimising risk and improving efficiencies while continuing to meet the business needs of the Entities.

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Detailed Implementation and Transition Project Plan to Guide Our Approach

Our draft Implementation and Transition Project Plan will ensure we seamlessly achieve the defined implementation milestones by the Milestone Dates and all transition related activities. In doing so, we will require the cooperation of Finance, the Entities, and the outgoing Service Providers. We will also work with the other Service Providers to optimise Commonwealth outcomes, minimise risk, and improve operational efficiencies.

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Staggered Approach to Implementation and Transition Services

Our Implementation Services will commence in January 2025 to achieve the 1 July 2025 Services Commencement Date. During these six months, we will mobilise each Work Package, Entity Property and Service consistently and correctly with minimal disruption to business as-usual activities. This includes providing all plans and progress reporting and attending a minimum of fortnightly meetings to address progress, tasks, risks, issues, and any changes.

Regardless of the portfolio size, we will apply a proven and consistent approach across the Work Packages and Entities. The significant difference across the portfolios is the duration to complete the activities, noting that they take longer relative

to the portfolio size. Indicative timelines are provided below:

• Large Portfolio (approx. 12 weeks) • Medium Portfolio (approx. 10 weeks) • Small Portfolio (approx. 8 weeks) • Micro Portfolio (approx. 6 weeks)

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Comprehensive Change Management and Communication Management Plan We understand the critical importance of ongoing collaboration with Finance and the Entity stakeholders during the Implementation and Transition-In period. Regular communication minimises disruption to operations and ensures all stakeholders understand the changes we will implement. It also allows us to identify and address any transition and operational risks. Our comprehensive Change Management and Communication Management Plan will minimise disruption to Entities operations and mitigate and manage any transition and operational risks by • Successfully managing communication activities during the transition before the Service Commencement Date • Comprehensively addressing the changes in the management of the properties and related Services, the benefits of the new arrangements, and how they will impact stakeholders.

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A Dedicated and Highly Experienced Leadership Account and Service Delivery Team Central to our proposed solution is a strategically thought-out account management structure. This structure offers a truly customer centric service promoting open and transparent communication.

W H OWL HE O LFE AOUFS TARUAS LT IRAANL IGAONVGE OR NV EMREN MT E|N TC U| S HC MU SAHNM&A WN A& KWE AF IKEEL FDI E L D

STEP CHANGE TO ENHANCED SERVICE CAPABILITY

Cushman & Wakefield will bring a consistent and coordinated approach to managing and governing each Entity. We aim to ensure seamless service delivery for Finance and the Entities and a truly integrated solution. Our Regional Director, Senior Account Director and Account Managers are accountable for delivering agile and flexible Services to Finance and the Entities. They will help to identify risks and adopt appropriate mitigation measures to improve efficiencies, make continuous quality improvements, and achieve operational excellence. They will also provide accessible mentorship and best practice advice, drive account performance and align all key stakeholders.

Our Canberra based senior leadership team will ensure that our resource management systems and processes are integrated across our delivery and that all our dedicated staff, support staff, systems, platforms, and training are continuously improving, effective in their day-to-day delivery, and appropriately resourced to deliver VFM to Finance and the Entities. We have nominated an Account Manager for each Entity as the key point of contact. The Account Manager leads the relationship with the Entity(s), providing a single escalation point and ensuring we identify and manage risk and unlock opportunities across each Entity’s portfolio.

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We will provide a dedicated Service Delivery Team for each Work Package, including experts from our business, recruits from the broader market, and outgoing Service Providers. This approach will ensure that Finance and the Entities benefit from Cushman & Wakefield’s proven systems and processes while bringing best practices from across the industry.

Vlad Mrda Regional Director

Vlad has over 17 years of experience in public sector governance, strategic advisory, finance, business transformation, and policy and planning. Vlad brings a strong customer focus, which enables him to develop service offerings that best meet client objectives. He will leverage his experience to achieve VFM outcomes for the Commonwealth and increase flexibility for the Entities regarding their performance and changing service needs.

Service Provider Senior Executive

Lora Radmilovic Senior Account Director

A property industry professional with over 10 years of experience in all facets of corporate real estate, including property management, facilities management, leasing, sustainability, customer service and property finance. As a proven leader of industry-recognised, innovative, and successful teams, Lora focuses on outcomes that exceed customer expectations. She will leverage her experience delivering end-to-end real estate services while providing transparency in her approach to operational performance, safety, and compliance for Finance and the Entities.

Service Provider Representative

Sanjiv Khanduja National Finance Manager

Sanjiv is a chartered accountant, certified financial planner, and finance professional with significant exposure in global commercial finance, financial planning and analysis, accounting principles, strategy and risk management. He brings hands-on experience collaborating with Executives, Senior Management and C-Suite across sectors, including property management, retail, and events and exhibitions.

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Specialised Support Through Service Centres of Excellence

Value for money will be achieved through our Shared Services, which provide a centre of excellence through scalable strategic insights and solutions for Finance, the Entities, and the dedicated Service Delivery Team.

The benefits to Finance and the Entities of these centralised resources include:

COST EFFICIENCIES by centralising expertise and applying expert advice, this actually reduces the number of required dedicated staff OPERATIONAL EFFICIENCIES by removing administrative burdens from our onsite teams, for example, reviewing invoices, and dedicating repetitive or high-volume tasks to specialist centralised teams GREATER FLEXIBILITY in the scope of services and resources allocated by supporting surge capacity during busy periods. KNOWLEDGE TRANSFER as this team work across all accounts they share their insights and knowledge gained from other clients to ensure we continuously deliver operational excellence to our customers. Their insights often lead to new product/process development.

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We will engage our broader business to support the Additional Services requirements. Cushman & Wakefield has extensive internal capacity and capability to provide all the Additional Services detailed in the Deed and SoR, demonstrating VFM. The Cushman & Wakefield Corporate Real Estate (CRE) teams provide an integrated suite of services for all commercial property needs. Support for WoAG Additional Service Requirements

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Our Sales teams Help uncover investment opportunities and capital sources and maximise the divestment proceeds for our clients. Our services include strategy development and investment planning, sale and leaseback advisory services, independent investment analysis, asset positioning, asset acquisitions/ dispositions, market analysis, redevelopment strategies, negotiation and due diligence, and ongoing investment oversight. Our Valuation and Advisory Plus Services provide you with practical valuation advice across a broad range of assets and industries. Our services include advisory, appraisal management, business valuation, dispute analysis and litigation support, portfolio valuation, property tax services, real estate due diligence, and valuation for financial reporting. Our Project & Development Services team brings extensive experience developing and delivering forward capital works programs for a range of Commonwealth clients, including the Department of Finance, Ministerial and Parliamentary Services, ATO, Defence, ASQA, NDIA, Home Affairs, DFAT, and the Australian Federal Police. They can support fit-outs, make goods, refurbishments, building upgrades and upgrades to assets and services, including replacing end-of-useful-life assets.

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Cushman & Wakefield’s proposed Property Services approach for WoAG will deliver the right resources, processes, and technology platforms to achieve the Commonwealth’s policy objectives and alleviate the administrative burden from Finance and the Entities to focus on achieving your core strategic objectives. Through the integration of dedicated personnel, shared support resources and strategic delivery partnerships, we will deliver a seamless service focused on VFM delivery, create meaningful Indigenous and SME engagement and deliver the operational consistency needed across the Work Package(s). Through our Shared Services, our approach will remain agile and flexible to adapt to the evolving needs of the portfolio while providing the expertise and support needed to our service delivery team to achieve value for money. Our integrated management information system (MIS) and client reporting platform, Triana, will streamline and automate processes and centralise data collection, empowering Finance, the Entities and our Service Delivery Team to make timely and accurate decisions on your critical operations and infrastructure. Finally, through our triple ISO-certified information management system (IMS) and health, safety, security, environmental and quality (HSSEQ) experts, we will continually improve your compliance and risk management to mitigate and manage risks accordingly and eliminate unplanned outages. Given the opportunity, we look forward to being Finance and the Entities trusted adviser and reliable delivery partner, delivering the Commonwealth’s high-level policy, strategic objectives, property and operational needs to the required standards. In Summary

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WOAG OBJECTIVES Continue to meet the business needs of the Commonwealth, including Covered Entities. Optimise Commonwealth outcomes, minimise risk and improve efficiencies.

Reduce the cost of supply.

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Provide exceptional Services to Finance and the Entities that leverage industry best practices, promote innovation and support broader Commonwealth outcomes. Canberra-based representatives at executive governance, senior leadership, account management and operational levels. Assist the Commonwealth in meeting or exceeding compliance requirements, including WHS laws, environmental sustainability, and heritage management. Provide accommodation planning and property management recognising the dynamic nature of the Commonwealth’s accommodation requirements, which often fluctuate.

Proactively deliver the Services using strong leadership, commercial acumen, and industry expertise to identify, raise and respond to potential challenges, opportunities, risks, and threats. responsiveness and minimising spending on assets that are the landlord’s responsibility. Drive strategic planning across all Property Services for each Entity following new and emerging Finance objectives and policies. Develop integrated end to-end processes that are fit for purpose and maximise VFM outcomes Align the Services to provide an efficient, standardised, consistent approach that can flex, scale, and adapt regardless of Entity size. Embrace the performance management regime to maximise responsiveness and continuously improve the Services. through consistent quality and pricing. Effectively manage landlords, including maximising

Work with Entities, Finance, and other Service Providers to design and implement work programs that maximise VFM outcomes by implementing a strategic and holistic approach. Ensure the efficient and VFM delivery of all services to all Entities under the Arrangements by aligning procurement activities in geographic areas. Support the SPA with strategic property planning, including developing and implementing initiatives under the WoAG Leasing Strategy that improve VFM outcomes across the Work Packages by maximising efficient use of space. Actively collaborate with Finance, the Entities and Other Service Providers to leverage the Commonwealth’s aggregated buying power, adhering where possible to the Buy Australian Plan.

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Contribute to a competitive and viable industry.

Establish fair, equitable and transparent processes.

• Establish a robust governance framework

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As a prime contractor, our business model is based on delivering through a collaborative approach through our expertise in managing our extensive national network of subcontractors. By providing genuine pathways for Indigenous, local, small medium enterprise (SME) and social procurement objectives we will deliver on the Commonwealth’s procurement objectives. seamlessly deliver the Services to meet the Property Portfolio needs, working in consultation and sharing best practices with other Service Providers. Use local providers to support the economy, reduce further subcontracting, and minimise environmental impacts and travel related costs. Leverage best practice, innovation, information sharing and strategic thinking across all Work Packages for the financial benefit of the Commonwealth. Co-operate with Entities and Finance to robustly plan and

that establishes fair, equitable and transparent processes to identify

opportunities, risks, areas of exposure, and continuous improvement to ensure optimum outcomes. • Ensure all team members comply with our Global Code of Business Conduct, act in the best interest of the Commonwealth and align with the APS Values. • Promote open and transparent communication, implementing a collaborative approach and decision making at all levels. • Work in partnership with Finance, Entities, the SPA, and other Service Providers and align with the WoAG expected behaviours. • Ensure our technology solution complies with the Essential Eight Strategies, ISM framework, and controls. • Establish robust governance, processes, and controls for Financial Management services. • Provide timely, accurate and standardised data to support performance benchmarking, planning and improved decision-making. • Procure and monitor Downstream Contractors ethically, ensuring integrity and due diligence in the selection process, considering the Modern Slavery Act 2018.

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C&W SOLUTION

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Vanessa Heuser Bid Director Facilities Management

Jon McCormick Head of Integrated Facilities Management & Asset Services

Vlad Mrda Regional Director

ABOUT CUSHMAN & WAKEFIELD

Cushman & Wakefield (NYSE: CWK) is a leading global commercial real estate services firm for property owners and occupiers with approximately 52,000 employees in nearly 400 offices and 60 countries. In 2023, the firm reported revenue of $9.5 billion across its core services of property, facilities and project management, leasing, capital markets, and valuation and other services. It also receives numerous industry and business accolades for its award-winning culture and commitment to Diversity, Equity and Inclusion (DEI), sustainability and more.

For additional information, visit www.cushmanwakefield.com.

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