For Development Committee (Tender Board C)'s Approval: APPOINTMENT OF FACILITIES MANAGEMENT COMPANY FOR FACILITIES MAINTENANCE OF JURONG ISLAND PROPERTIES AND ESTATE FOR A PERIOD OF 3 YEARS

[Audio] Good morning Chairman and DC members. It is my pleasure to present to you the request for the Development Committee's approval for the appointment of a Facilities Management company for Facilities Maintenance of Jurong Island properties and estate for a period of 3 years. The appointed Facilities Management company will be responsible for the maintenance, operation and management of all buildings located on Jurong Island, and for ensuring the quality of maintenance services provided are consistent with the JTC standards. This will help us to ensure the smooth running of the properties and assets located in Jurong Island and will result in cost-savings and efficiency in the long run. We have done a thorough assessment and research on the bids we have received, and hereby recommend for your approval the appointment of the most qualified bidder for this project. I would be more than happy to answer any questions you may have..

[Audio] Guthrie FMC Pte Ltd has been identified as the recommended tenderer. After evaluation and consideration, they have offered a total evaluated price of $73.9 million, based on a 3+3+3 year contract. This includes a contingency sum of $5.6 million and other incentives. Awarding this contract as proposed would ensure the Maintenance of Jurong Island properties is in line with relevant regulations and has continuity of service over the next six years. Therefore, we believe it is in the best interests of the company to approve said award..

[Audio] We are seeking approval for the appointment of a Facilities Management Company to oversee Jurong Island Properties and Estate for a period of 3 years. We have already awarded 7 FMC contracts, 3 of which are in place and the other 4 now in the tendering stage. This new appointment will allow us to maintain, improve, and expand our existing portfolio of properties, which includes major industrial sites such as Tuas Biomedical Park and Changi Business Park. We would appreciate your support in this endeavour..

[Audio] Kenneth Woo from JTC FEM FM West Division has requested that the Development Committee approves the appointment of a Facilities Management Company for Facilities Maintenance of Jurong Island Properties and Estate for a period of 3 years. This includes Jurong Island, Oasis @ Sakra, Pier 20, and Checkpoint, along with their respective building and land areas. These figures equate to a total building area of 25,076 sqm and a total area of 1,579,386 sqm. JLL, C&W and CBRE all have an advantage in managing buildings, however, estate maintenance capabilities have yet to be proven since the earliest FMC contract covering both estate and building was only awarded last November. We feel that the approval of this request is necessary for the efficient management of Jurong Island's facilities..

[Audio] The slide outlines the tender information for the appointment of a Facilities Management Company for the West 1/ Jurong Island. The target commencement date is set for the 1st of May 2024. Three tenders were received with a price range of $64,978,996.14 to $80,269,778.80. An Estimated Project Value of $73,931000 was approved on the 30th of January 2023 and the tender opening period ran from the 21st of August to the 16th of October 2023..

6. Tender Evaluation.

[Audio] After reviewing various FM company tenders, we narrowed our selection to two potential providers: Guthrie and Savills. The bids have been laid out in the table, with Guthrie's bid slightly lower than Savills'. Both bids are within the estimated budget of $80 million for the project..

[Audio] uptake of these initiatives from the FM industry..

[Audio] Upon careful review of the tenders received for the Facilities Maintenance of Jurong Island Properties and Estate, Guthrie FMC Pte Ltd has been deemed the highest scoring tenderer with an overall score of 94.37 out of 100 points. The successful tender was based on a strong quality score matched with an attractive price. We are certain that with the awarding of this contract to Guthrie FMC Pte Ltd, we will receive the most value for the Facilities Maintenance of the Jurong Island Properties and Estate..

[Audio] Based on the chart, Guthrie provides the lowest trade cost compared to the other tenderers. The Development Committee has evaluated the tenderers with respect to the requirements needed for Facilities Maintenance of Jurong Island Properties and Estate, and Guthrie has scored the highest and satisfied the criteria..

[Audio] Our recommendation is to appoint JLL as the Facilities Management Company to provide Facilities Maintenance of Jurong Island Properties and Estate for a period of 3 years based upon their comprehensive proposal as evidenced by their highest PQ score as well as the 19 solutions they presented as compared to 12 from Guthrie, 9 from CBRE and GWS. JLL also proposed a more cost effective cleaning solution, as well as the Sigfox-BLE Solution for Consumables and Tree Tilt Sensor for enhanced property maintenance and monitoring. We believe that these value-add offerings strengthen their proposal and experience in facilities maintenance, making them the ideal candidate for this project..

[Audio] The Singapore Commercial Credit Bureau (SCCB) rated Jones Lang LaSalle Property Consultants Pte Ltd as a CA1, with a key rating of minimal credit risk. SCCB's assessment showed that JLL had a maximum annual capacity range of SGD 165000000. After a detailed examination of the financial information, the Evaluation Committee concluded that JLL meets the necessary requirements to secure the facility management of the properties and estate on Jurong Island for a duration of 3 years..

[Audio] After a thorough review of all tenders received for the Facility Maintenance of Jurong Island Properties and Estate, TEC has recommended Jones Lang LaSalle Property Consultants Pte Ltd, who offer the most competitive pricing and experienced personnel for the task. The value of procuring this service is $160,589,103.31 for a 3 year period, which includes contingencies and incentives. The appointment of Jones Lang LaSalle Property Consultants Pte Ltd is expected to be mutually beneficial to Kenneth Woo JTC FEM FM West Division and the Development Committee's Tender Board C..

14. Thank You.

[Audio] The Estimated Procurement Value (EPV) and its yearly cost escalation will be derived based on the cost structure of the previous contract and the cost estimation for the maintenance activities of the FMC. The EPV will be calculated accordingly while the yearly cost escalation will be determined by the inflation rate. This approach is to ensure the FMC meets the requirements and standards for facilities maintenance whilst providing value for money..

[Audio] Following our review of JI's existing contracts and management models, there are two distinct groups that manage the FMC contract: building and estate management. The building segment includes five locations across the island - JI Checkpoint building, Pier 20 Long Term Pass Office, PDL Checkpoint, Oasis@Sakra, and the Forward Operations Base. Meanwhile, estate management covers a spectrum of elements such as highways, roads, vacant land, landscape, and TNRM for the management of stray animals. In the next slides, I will go through the steps for calculating the Estimated Present Value (EPV) and yearly cost escalations, as well as the process of converting the Chemical Process Technology Centre to a Forward Operations Base for Singapore Armed Forces personnel..

[Audio] Our recommendation is for the Highest PQ Score Tenderer Guthrie. With an estimated total lump sum of $143,303,246.59 and a manpower cost of $50,976,067 for 73 personnel, this company is the most qualified and economically competitive, providing over 15% in cost savings compared to the second runner-up. We are confident that Guthrie will meet all our needs and deliver unparalleled customer service for our Jurong Island property and estate. Thank you..