Hyder Business Services beat Amey in the race for the contract. Hyder will take over from the council to run services such as facilities, property and energy management, human resources, finance and marketing.
Under the ten-year deal, Middlesbrough will also hand over the management of business processes such as pensions, payroll, housing benefit, council tax and social services benefit.
Ian Featherstone of the council's best value team said: "The council is moving away from a detailed specification. Under the contract we will tell Hyder what we want and it is then down to them to achieve it. We are working on outcomes and this gives us maximum flexibility."
The council says Hyder's overall package won because it guaranteed jobs, better IT systems and higher savings. It predicts the public private partnership will create 490 new jobs and generate £150 million of new business, initially by relocating existing Hyder contracts to Middlesbrough. The council also says the deal will free up £22 million in council resources.
Hyder has agreed to invest £19 million in a new regional business centre to handle the contract work, which will see the construction of new offices, shops and a multi-storey car park. Part of the contract will be to set up a single customer contact centre for enquiries.
In November The Facilities Business revealed that Hyder had been named preferred bidder in a £200 million multi-service contract with Bedfordshire County Council, another contract resulting from a council best value review. This also combines the provision of facilities management with IT, finance and human resources. As with Middlesbrough, Hyder is to invest £8 million in a new business centre.
Under the government's best value initiative, introduced in April 2000 to replace compulsory competitive tendering, councils must select the bid that gives the best overall value.
Source
The Facilities Business
