Hard FM Services South - Cluster Transparency Notice

The MoJ intends to implement a new delivery model for the future provision of facilities management services across the MoJ estate. This new model will be delivered via the Property Transformation Programme (PTP). This programme includes the services in scope of this contract. The PTP procurements are currently at evaluation stage.

The existing contract was previously extended on 26/09/2024 until 30/09/2026 (www.find-tender.service.gov.uk/Notice/035162-2024)but ↗, given the size and complexity of PTP, it will not be fully mobilised until late 2027. The MoJ has therefore determined that it is necessary to enter into this contract, which is a follow on from the existing contract, for 13 months from September 2026 to October 2027 to ensure continuity of critical services whilst the PTP procurement processes conclude.

MoJ considers that the conditions are met for reliance on one or both direct award justifications.

Single supplier (Schedule 5, paragraph 6)

In the circumstances there is only a particular supplier that can supply the services for the 13-month period which is the existing supplier, Kier. There are technical reasons for an absence of competition relating to this specific delivery of the services over a 13-month period. These relate primarily to the integration required with the existing FM contracts and systems where any new supplier would take longer than the anticipated contract length to mobilise. Both the demobilisation of the existing contract, and mobilisation phases of a replacement contract are lengthy. Anticipated mobilisation periods for new contracts as a result of the PTP processes start at a minimum of 120 days. For a 13-month extension there would be insufficient time to mobilise a new supplier, transfer staff, embed new processes and then move to a steady state service, before then demobilising the contract. It is estimated that demobilisation / mobilisation would take upwards of 12 months.

Against the backdrop of the PTP competition, there are no reasonable alternatives to the required services proposed to be delivered by the existing supplier in view of the disproportionate amount of time that would be required for demobilisation/mobilisation relative to the length of the extended service required. In addition, given the commencement of mobilisation for new contracts awarded under the PTP procurement process would begin prior to the start of any new contract for a 13-month additional service period, it would mean that mobilisation activity would be happening concurrently. This is not feasible and is not a reasonable alternative to the service proposed to be delivered under this 13-month extension. This is particularly the case given the complexities associated with mobilisation and the risk of disruption to critical public services during any mobilisation period.

Additional services (Schedule 5, paragraph 7)

The MoJ wishes to obtain services from the existing supplier which are intended as an extension to the existing services currently provided by that supplier. To change supplier for a 13-month period would result in MoJ receiving services that are different to the services currently provided by the existing supplier. This would include: differences arising out of transfer of staff and assets to a new supplier, new processes and IT systems from the introduction of a new supplier, including interoperability with existing FM systems which if introduced would either require modification to other FM contracts or a complete inability to integrate. The difference in services would result in disproportionate technical difficulties in operation and maintenance for this 13-month period. This would include that a disproportionate amount of time would be required for demobilisation/mobilisation relative to the length of the extended service required. In addition, given the commencement of mobilisation for new contracts awarded under the PTP procurement process would begin prior to the start of any new contract for a 13-month additional service period, it would mean that mobilisation activity would be happening concurrently. This is not feasible and would result in disproportionate technical difficulties in operation and maintenance. This is particularly the case given the complexities associated with mobilisation and the risk of disruption to critical public services during any mobilisation period.