Total Facilities Management Home Office North

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.