£15m initial savings as new FM contractors improve the provision of services across England

by Amy Williams

Following the recent completion of NHS Property Services’ national rationalisation exercise to streamline its facilities management contracts, the company has updated on progress, with £15m savings to date realised and contractors mobilised and improving the provision of FM services across the country.

The rationalisation programme has included a huge change in the way services are managed at NHS Property Services and will significantly improve the company’s performance. With the TUPE (Transfer of Undertakings (Protection of Employment) of over 900 members of staff into NHS Property Services, the reduction of thousands of historical outsourced FM service providers to fewer than 20 and embedding new ways of sustainable working, NHS Property Services is set to save millions each year across the whole NHS system.

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 already driving efficiencies for the NHS, with £15m already saved and an expected total saving of £22m by year end, which will be reinvested back into patient care.”

Following the procurement exercise which adhered to all OJEU (Official Journal of the European Union) procurement and tending specifications, new contractors were announced in March 2016 and mobilisation commenced on 1 April 2016.

FM Rationalisation has reduced 2300 outsourced contracts down to 249 and 1000’s of suppliers to under 20.

Mitie Facilities Services Ltd was appointed to supply ‘Hard’ FM services – which include mechanical and Electrical and Building Fabric services – at the majority of locations across England. The Hard FM contractors were reduced to five, with other successful bidders: Integral UK Ltd, Corrigenda UK and Guy’s and St Thomas’ NHS Foundation Trust.

The successful bidders for Soft FM contracts include OCS Ltd (Cleaning Services); Phs Group PLC (Feminine Hygiene); Burleys Ltd and Mitie (Grounds and gardens); Mitie Pest Management Services Ltd and Vermtech Pest Control Ltd (Pest control); Mitie Security Services Limited (Security); Walkers CS Ltd and Cinderella Support Services (Window cleaning), and SRCL (Waste).

Charles Siddons, Head of FM at NHS Property Services added: “We are now in the final phase of the rationalisation story, working in partnership with the newly appointed contractors to embed new agreements, structures and new ways of working, many of which are now fully operational and can now be viewed as ‘business as usual’ and return to operational normality.”