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Council puts £160m contract out to tender

Open-access content 11th September 2009
11 September 2009

North Somerset Council is putting its back office functions, including FM, out to tender as a single 10-year contract possibly worth up to £160m.

Apart from FM, the contract is to include ICT, HR services, revenue and benefit services as well as ICT support for schools.

The service provider will also be expected to help with the development of the council's e-procurement system.

North Somerset Council has indicated that, although it wants a single contractual relationship, it will be open to partnering or consortium arrangements on the condition that there is one lead supplier.

Over the ten-year life of the contract the council expects support services to be worth some £102m, with the revenues and benefits element estimated at £40m and education work worth up to £16m. There is the possibility of a five-year contract extension.

Michael Larner, a senior analyst at Kable, said: "The council's latest comprehensive performance assessment says it is improving strongly, but it received a low rating for corporate assessment, which might explain the range of functions included in the tender.

"I would expect the strategic partner to subcontract elements of the contract due to the scope, including management consultancy to improve the council's performance."

Suppliers have until 14 October to register their interest.

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