The Council will achieve revenue savings of at least £550,000 per annum. This is the first time that the Council has grouped all of its property services into one contract and this is the first Local Authority contract of this kind in the UK.
A framework agreement has also been put in place through which other local councils and bodies within Oxfordshire can procure services that could increase Carillion's revenue by an additional £200 million over the 10-year contract period.
Oxfordshire County Council also has the option to extend the contract for a further 10 years, based on performance.
Carillion will provide routine property management, facilities management, energy management and capital works services. Carillion has appointed Capita Symonds as a key sub-consultant to deliver strategic asset management, estates management and multi-disciplinary design services, which are expected to generate approximately £42 million of revenue for Capita over the 10-year life of the contract, with the potential for additional revenue from the framework agreement.
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Oxfordshire County Council, Carillion and Capita Symonds share a common ambition to grow a successful partnership founded on creating success for local suppliers and producers. While contracted savings form the foundation of the solution, there is a strong commitment to improve quality to all service users by transforming the structure of service delivery and developing the skills of the people on the frontline of service delivery. The partnership will build resilience within Council services to protect against future risks and provide the flexibility to take forward new opportunities as they arise.
Carillion will also take on the Council's schools catering business (Food with Thought) and in-house cleaning service (QUEST Cleaning Services) as part of the new contract, with the transfer of over 700 staff. Both services are a key focus of Carillion's growth plans going forward.
The contract will have the flexibility to serve other local councils and bodies within Oxfordshire through a Framework Agreement. Participating bodies can procure similar services for their own estates, without the need for further procurement processes or costs. Participating bodies include health and other public sector organisations, the district councils, schools (including academies) and further education colleges across Oxfordshire.
(CD/GK)
