15-year contract for fm contractor Interserve could rise to as much as £900m

Interserve (Facilities Management) has been awarded an innovative contract that will help Defra buildings achieve sustainability targets and provide workplace services management.

The 15-year Sustainable Built Environment & Workplace Support Services contract has a core-services value of approximately £500 million and a potential value for non-core services of £400 million. The contract covers Defra estates throughout England and Wales.

Defra is aiming for:

• annual and continuing cost reductions, totalling £126m over the 15 year term of the contract;

• a commitment to investing in the Defra estate achieving and exceeding sustainability targets for waste and recycling, energy and water consumption, carbon emission and biodiversity;

• continuing investment in sustainability and environmental performance, aimed at influencing behavioural change, accommodation use and exceeding longer term Sustainable Operations on the Government Estate (SOGE) targets.

• a flexible contract for a maximum of 15 years; and

• single national point of contact for building and accommodation needs for Defra.

Helen Ghosh, Defra’s permanent secretary said: “I am pleased to announce that Interserve have been selected to take forward Defra’s Sustainable Built Environment and Workplace services contract. This contract will provide excellent value for money and cost savings. Interserve is committed to investing in the Defra estate and will play a major role in helping Defra exceed its sustainability targets so that we can lead the way in sustainable Government.”

Adrian Ringrose, Interserve’s chief executive said: “Defra’s vision required a fresh approach to service delivery. Our response is a total accommodation service model that encompasses sustainability, exemplar facilities management service, asset management and space and workplace management. We have selected, combined and developed the best practices from across PFI, PPP and traditional FM contracting into a unique, responsive and innovative service model.”

Defra’s existing facilities management contracts are due to expire at the end of March 2009 and Interserve will take over in April 2009. During the interim period Interserve will work closely with Defra’s current teams to ensure a smooth transition. Existing facilities management staff that provide services to Defra will transfer to Interserve.