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'Revolutionising' local authority outsourcing

Published 31st January, 2012 by Neil Nixon

'Revolutionising' local authority outsourcing

MITIE Group plc has signed a 10-year contract with Essex County Council. The company will work with the council to deliver a ‘transformational outsourcing contract’ which includes facilities and property management as well as energy services. MITIE will be working in partnership with Lambert Smith Hampton to provide estate management services to the council, including strategic asset management and new ways of working that deliver sustainable improvements for Essex.

Under the new contract MITIE will employ more than 500 people to service over 350 sites including Essex County Hall, offices, libraries, community centres and depots covering 145,000 square metres.

MITIE’s integrated delivery model will self-deliver a wide range of services across the council’s portfolio including maintenance, cleaning, security, catering, waste management and mail & distribution services.

With a base contract value of £8 million per annum and up to £2 million additional project works to be undertaken each year, the total value over the period will range from £80 to £100 million. Essex and MITIE will also be working with Improvement East (a partnership of authorities in the East of England) to identify wider efficiency savings and improved service outcomes for Improvement East partners.

Essex County Council awarded MITIE the contract because of its strategic, efficient and sustainable service model that will deliver significant savings on the current cost of service delivery. MITIE’s technology platform, MiWorld, will provide the council with a business intelligence solution that integrates its management information across the estate and MITIE’s sustainable solution includes guaranteed reductions in energy consumption within three years. MITIE is also fully committed to investing in the development of Essex by employing apprentices and ensuring at least 25% of sub-contracted work is placed with local SMEs.

Ruby McGregor-Smith, chief executive of MITIE, said: “This is a fantastic opportunity for MITIE to deliver a transformational outsourcing offering to one of the UK’s most visionary local authorities. We are delighted to be working with Essex County Council and are looking forward to developing this relationship over the long- term.”
County councillor, Derrick Louis, cabinet member for procurement, property and major schemes, said: “I am looking forward to working with MITIE in order to provide this essential service. This partnership will enable Essex County Council to make property and facilities management more efficient, support the local economy and save money for Essex taxpayers.”

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