Published date: 1 December 2023

Awarded contract - This means that the contract has been awarded to a supplier.


Closing: 31 October 2023, 11:59pm

Contract summary

Industry

  • Property management services of real estate on a fee or contract basis - 70330000

Location of contract

North East, North West, Yorkshire and the Humber, East Midlands, West Midlands, East of England, South West, Scotland, Wales, Northern Ireland

Value of contract

£46,168,129

Procurement reference

tender_317885/1289041

Published date

1 December 2023

Closing date

31 October 2023

Closing time

11:59pm

Contract start date

1 November 2023

Contract end date

31 March 2026

Contract type

Service contract

Procedure type

Negotiated procedure without prior publication (above threshold)

The opportunity was not advertised, because for example only one supplier is capable of delivering the requirement, or due to extreme urgency brought about by unforeseen events.

This procedure can be used for procurements above the relevant contract value threshold.

Contract is suitable for SMEs?

No

Contract is suitable for VCSEs?

No

Description

The Home Office awarded a contract to Interserve (Facilities Management) Limited (now Mitie FM LTD) on 1st July 2016 for the provision of facilities management services following a competitive procurement (Contracts Finder Reference CCS1111 (Home Office North)). This contract, including options for extension included within the contract ran from 1st July 2016 to the 30th June 2023 . The estimated value of the original contract including extensions was £78,400,000. The contract is managed by the Ministry of Justice (MoJ) on behalf of the Home Office.
The Home Office will be re-procuring their own FM contract(s) under its FM26 Programme including the services currently being provided under this contract and a PIN is due to be issued shortly regarding future procurement of these services. Given its scale and complexity, it is anticipated that the FM26 contracts will not be mobilised until 2025. The MoJ, on behalf of the Home Office, has therefore opted to extend the existing contract to 31st March 2026 to allow time for full consideration of the Home Office's FM procurement strategy and conduct any procurement activity (including any delays to the implementation of FM26 beyond the currently anticipated timetable). The estimated value of the extension is £46,168,129

The MoJ has implemented the above modifications to the existing contract under Regulation 72(9) PCR, using a negotiated procedure without prior publication in accordance with Reg. 32(2)(b)(ii) PCR, on the basis that the services to be supplied can only be supplied by Mitie because competition is absent for technical reasons. The FM services to be supplied are particularly complex because they incorporate secure sites, require a vetted workforce and supply chain, an understanding of Home Office operations and an ability to respond to urgent and unforeseen matters. The estate includes a variety of different buildings varying in age, size and capacity levels. Maintaining service continuity is a critical element of the service, which takes expertise and time to understand. Specialist knowledge of the services in question is therefore critical in order to maintain the functioning of essential public services. Although alternative suppliers exist for FM services in general, it would not be feasible for the Home Office to competitively procure and successfully mobilise a new contract of this complexity with an alternative supplier for a relatively short time period in advance of the anticipated transition to FM26; particularly given the likely complexities associated with mobilisation, complexities arising from what would be potentially a dual transition involving up to three contractors, associated workforce issues and the risk of disruption to critical public services should the Home Office be unable to successfully transition to a new supplier prior to expiry of the existing contract. The forthcoming FM26 competition will provide the market with the new procurement opportunity.

Award information

Awarded date

1 November 2023

Contract start date

1 November 2023

Contract end date

31 March 2026

Total value of contract

£46,168,129

This contract was awarded to 1 supplier.

MITIE FM LIMITED

Address

Level 12, The Shard, 32 London Bridge Street, London, SE1 9SG

Reference

No reference - other

Supplier is SME?

No

Supplier is VCSE?

No

About the buyer

Address

102 Petty France
London
SW1H 9AJ
England

Email

CCMDMOJCluster@justice.gov.uk