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FM rationalisation set to save the NHS millions

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 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.

This involved consolidating over 2,300 individual ‘Hard’ and ‘Soft’ FM contracts. The Hard FM contracts have now been reduced to five, which was undertaken via an extensive tendering and procurement process that was conducted through a system of local ‘Lots’. The other successful bidders are: Integra UK, 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 says: “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, adds: “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 concludes: “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.”