News

One of the country’s largest FM rationalisations to save NHS millions

by Jeremy Peters

One of the country’s largest FM rationalisation processes completes and is set to save millions each year for the NHS

NHS Property Services has completed a national procurement exercise to streamline its facilities management contracts. This will not only save approximately 20% on the £200 million contracts which are currently outsourced, but will ensure consistency in quality of facilities management services across the country and an end to the historic wide disparity in costs charged to occupiers of the company’s properties.

The company has announced the first stage of this exercise, with the appointment of Mitie Facilities Services Ltd to supply ‘Hard’ FM services – which include mechanical and Electrical and Building Fabric services – at some locations across England.

The appointment follows a nine-month rationalisation process of facilities management services across the entire NHS Property Services estate.

The process involved consolidating over 2,300 individual ‘Hard’ and ‘Soft’ FM contracts.

The Hard FM contracts have now been reduced to five, and this was undertaken via an extensive tendering and procurement process that was conducted through a system of local ‘Lots’.

The other successful bidders are: Integral UK Ltd, Corrigenda UK, Graham Asset Management and Guy’s and St Thomas’ NHS Foundation Trust.

The rationalisation of Facilities Management services has never been achieved on this scale before and is set to save approximately 20% from a £200 million outsourcing operation for the NHS.

Dennis Markey, Chief Operating officer at NHS Property Services said: “This is a fantastic achievement for our FM teams and marks a significant cost saving for the NHS.

“By reducing the number of contractors we employ and setting a standard service specification, this process is driving efficiencies for the NHS, while making it easier to manage and control contracts. It has already saved millions for the taxpayer which will have an immediate impact on the quality of patient care.”

Ruby McGregor-Smith CBE, Mitie’s Chief Executive, said: “We are very pleased to have been awarded this landmark contract. We are looking forward to working in partnership with NHS Property Services in the years ahead to improve the efficiency of the facilities management services provided to their wide range of buildings across England. ”

The FM rationalisation process is being conducted in two programmes which have been running in parallel: the Hard FM rationalisation process has been completed first, and that for Soft FM services, which includes cleaning, pest control, window cleaning, feminine hygiene, catering, car parking, gardens and landscaping, security waste, asbestos surveys, hot and cold water surveys, medical gasses and FM support services, will conclude shortly.

Both processes will be completed by 1 April 2016.

Dennis Markey added: “The process of change will set a new standard for FM operations which will not only reap huge benefits for the NHS, but will change the way FM is viewed across the industry.“

Notes to Editors:
FM Rationalisation
  • The Hard FM contracts have been split into two services which are Core Mechanical and Electrical and Building Fabric, Gritting and Snow Clearance.
  • Mitie has won Hard FM contracts for Mechanical and Electrical services for 25 lots across England and Building Fabric for 30 Lots.
  • Integral UK Ltd won 3 Lots, Corrigenda Ltd. 2 Lots, and Graham Asset Management 1 Lot
  • Guy’s and St Thomas’ NHS Foundation Trust 1 Lot for Building Fabric.
  • Two more Lots have yet to be awarded for both Core Mechanical and Electrical and Building Fabric.
  • The FM rationalisation process was designed on a local level, to encourage small and medium sized businesses to take part. The winning bidders were chosen on merit, regardless of scale.
  • NHS Property Services currently spends £400m per year on both Hard and Soft Facilities Management services. 50% of this is delivered in house, 50% is outsourced.
  • NHSPS expects to save around 20% on the £200m outsourced with the new Hard and Soft FM contracts.
  • The rationalisation process has seen 2,300 contracts reduced to just 5 which is estimated to save 20%.
  • The new contracts will be in place for 3 years with the option of two one-year extensions after that.

For more information on the FM Rationalisation process, please contact chris.cunniff@property.nhs.uk