Whitehall looks to BAA for procurement tips

The news follows Morgan’s revelation last month that BAA had saved about £300m since he joined the group in January 2009 and comes against a backdrop of spending cuts and efficiency drives by the new government.

Morgan said: “I am invited at least once a week to talk to clients, including a number of government agencies, about how the system here and the more traditional approach to procurement works. They are increasingly seeing it as an attractive and effective approach to tendering.”

“Increasingly, they are seeing it as an attractive approach to tendering”

Steven Morgan

When Morgan took over at BAA, it was £300m over its £4.1bn spending limit, but he says the 2008-13 five-year programme is back on budget, thanks to measures that included tendering work outside the framework, cash rewards for good performance and slashing red tape.

This week, Morgan also revealed a shake-up of the group’s senior management, including three high-profile appointments.

Sarah Ellis, former head of sourcing for BBC procurement, has joined as chief procurement officer; Joanne White, Bechtel’s former operations manager, has joined as Eastern Campus project director, taking over from Phil Wilbraham, who is now development director; and Chris Elliot from Turner & Townsend has been appointed head of infrastructure.

Morgan has extended his overhauled procurement system to cover the maintenance and upkeep of all BAA buildings. In the past this would have come under the operational side of the business, but it has now been merged with capital projects under the “capital and contracts” badge. Facilities management and maintenance will now operate under the same conditions as the main construction supply chain.