Services at Consignia's 4.6 million m portfolio up for grabs as Romec searches for outsourcing partner
The Post Office, now known as Consignia, is looking to outsource building and facilities management services for its 4.6 million m2 UK portfolio.

The portfolio is made up of 18 different business units and 20 different types of property, and is home to some 180,000 employees. The value of all facilities management and related services is currently estimated to be worth in the region of £470 million.

The proposed outsourcing contract – the winner of which Consignia hopes will become a joint venture partner for its facilities management arm, Romec – has been split into two 'lots'.

Lot one includes a range of facilities management and related services, including installation of building engineering, mechanical and electrical systems, installation of telecommunications, street furniture and mail-processing systems, as well as security, cleaning and property management. Lot two is for cleaning services. Both packages may include some management consultancy.

A spokesman for Consignia Purchasing Services said Consignia had already been approached by suppliers that wanted to take on parts of the contract, but that the group really wants 'a contractor who can do either all of lot one or both lots'.

The successful bidder could become the owner of a 49 per cent stake in Romec, which currently handles the majority of Consignia's facilities and related services and has a turnover of £180 million. Romec is to be set up as a separate operation.

Any contractors wanting to take part must contact Consignia by 17 April.

Respondents that meet the pre-qualification requirements will be invited to submit outline proposals for the provision of services, using the existing Consignia facilities management assets that they will acquire as part of the deal.

The successful bidder will then be considered for a joint venture.

Earlier this year, at a conference organised by The Facilities Business, Roy Galley, director of planning at Consignia, confirmed he was in the early stages of putting together a facilities solution that would rely heavily on outsourcing. He said his first step would be to consolidate the fragmented departments that make up the giant portfolio.

He said the new approach to property would focus on removing duplication in contracts, introducing simpler, faster contracting processes and making better use of Consignia's buying power.

* More than 20 firms are bidding for a prestigious contract to provide facilities management services for The Cabinet Office. The contract includes building management, catering and reception services. It will cover 13 sites in and around London and may be expanded to include further sites.