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24 April 2018
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Mitie wins £100m deal with NHS Property Services

NHS Property Services
Credit: NHS Property Services

1 March 2016 | Herpreet Kaur Grewal

NHS Property Services says support services company Mitie will supply hard FM services on some of its estate across England after a nine-month “streamlining” process.


Mitie will supply mechanical and electrical and building fabric services on a three-year term with options for two one-year extensions.

Mitie has secured 25 of the 31 lots, the contract is for three years with the option of two one-year extensions and the estimated full-term contract value is in excess of £100 million. 


The announcement comes on the heels of a massive “rationalisation process” being carried out by NHS Property Services. Last month FM World reported that the organisation was preparing to award 50 contracts worth £160 million for managing and maintaining office and primary care facilities across the country.


The rationalisation process of FM services has been running across the entire NHS Property Services estate over nine months. 


During this period, NHS Property Services consolidated more than 2,300 individual hard and soft FM contracts. The hard FM contracts have now been reduced to five, and this was undertaken through an “extensive tendering and procurement process that was conducted through a system of lots”, according to the NHS.


Other successful bidders in the process are: Integral UK Ltd; Corrigenda UK; Graham Asset Management; and Guy’s and St Thomas’ NHS Foundation Trust.


Dennis Markey, chief operating officer at NHS Property Services, said: “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.”


Rationalisation of FM services “has never been achieved on this scale before and is set to save approximately 20 per cent from a £200 million outsourcing operation for the NHS”, said NHS Property Services. This 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 process is being conducted in two programmes that have been running in parallel; the hard FM rationalisation process has been completed first. The 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.


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.”