Amey, one of the UK’s leading public services providers, has been awarded a contract to combine the facilities management services of Westminster City Council, the Royal Borough of Kensington and Chelsea and the London Borough of Hammersmith & Fulham.
The three London councils who are redefining the way local authorities operate and deliver services have approved the outsourced facilities management contract, valued at over £150m.
The contract will run for ten years and is expected to save each of the three councils over £2m a year (equivalent to more than 34% saving over current costs) through operational efficiency.
Amey will deliver facilities management services across a combined estate of nearly 2000 buildings comprising 1.3 million square feet. It will include building security and maintenance as well as catering, landscaping, environmental management, cleaning and reception services.
Transfer of Undertakings and Protection of Employment (TUPE) regulations will apply for up to facilities management staff across the three boroughs.
All other London boroughs and schools will have the opportunity to buy into the service as partnering authorities.
Cllr Nicholas Paget-Brown, the Royal Borough’s Leader, said: “By sharing facilities management across the three councils we will be able to save money, protect frontline services and keep taxes low during a time of unprecedented pressure on local government finances.
“Through our Tri-borough working we are proving to residents and other local authorities that this approach works and provides even better services.”
Speaking about the contract award, Mel Ewell, Chief Executive of Amey said: “We are delighted to be selected as preferred supplier for this innovative total facilities management contract. Working collaboratively with the councils will bring together service delivery expertise from the public and private sector, helping us to achieve their vision of enhanced services and greater efficiencies.
“We look forward to delivering our commitments to the three councils as well as to the local community through employment and skills development.”
The new collaboration between the three councils will add to the portfolio of services they already share.
Service mobilisation will begin in June and the contract is expected to start from October this year.
Cllr Nicholas Botterill, Leader of Hammersmith & Fulham Council, said: “In these difficult economic times, we are showing categorically that by making simple common-sense reforms like this it is possible to protect and even improve front line services.”
Cllr Philipa Roe, Leader of Westminster added: “Combining back-office services and management costs in this manner is also helping us to reduce council tax and it is no surprise that our three councils are in Britain’s top four for having low tax.”