Agenda item

Gateway 3 Contract Awards - Corporate FM Contracts

Minutes:

Background:

 

The report sought Cabinet approval to award the procurement of the Corporate Facilities Management (FM) Contracts. The new Corporate FM Contracts were scheduled to begin on 1 April 2026, bringing the current FM agreement with Medway Norse to an end. The Gateway 3 reports for each of the 10 new FM contracts had been approved by the Procurement Board on 18 December 2025 and the detail of each contract was contained in Appendices A to J attached to the cover report. Each Appendix also had an exempt appendix providing further information in respect of the financial analysis for each contract.

 

Diversity Impact Assessments had also been undertaken for each contract and were attached to each Appendix to the report.

 

Decision

number: 

Decision:

 

 

08/2026

The Cabinet agreed to award the following contracts as detailed in Appendices A to J to the report [and set out as decision No.s 08a/2026 to 08j/2026], as they had been evaluated as the most advantageous against the Council’s award criteria as per the evaluation spreadsheets contained within section 3.1 of the Exempt Appendices of Appendices A to J to the report:

08a/2026

FM Electrical Services Contract to Phosters (FM) Ltd, as set out in Appendix A to the report;

08b/2026

FM Heating and Ventilation Services Contract to Re-Gen (M&E Services) Ltd, as set out in Appendix B to the report;

08c/2026

FM Fire Safety Services Contract to RGE Services Ltd, as set out in Appendix C to the report;

08d/2026

FM Water Compliance Services Contract to Envirocure Ltd, as set out in Appendix D to the report;

08e/2026

FM Asbestos Compliance Services Contract to Riverside Environmental Services Ltd, as set out in Appendix E to the report;

08f/2026

FM Lift Maintenance Services Contract to Wemaintain, as set out in Appendix F to the report;

08g/2026

FM Cleaning Services Contract to Pacific Support Services Ltd, as set out in Appendix G to the report;

08h/2026

FM Security Services Contract to Chase Security Services Ltd, as set out in Appendix H to the report;

08i/2026

 FM Grounds Maintenance Contract to Canvins Group, as set out in Appendix I to the report; and

08j/2026

FM Building Fabric Services Contract to Topcoat Construction Ltd, as set out in Appendix J to the report.

09/2026

The Cabinet agreed that the above awarded contracts be aligned with the FM Service contract budget and noted that these budgets had been established based on historical expenditure within the 2024/25 Medway Norse FM Contract, and a pricing exercise undertaken by a qualified Quantity Surveyor consultant.

Reasons:

 

The Corporate FM Contracts are a suite of 10 specialist contracts, all to commence on 1 April 2026, and are for a maximum of 7 years on a 3+2+2 basis. The initial contract will commence on 1 April 2026 and end on 31 March 2029, with extensions available via approval to 31 March 2031 and a final possible extension period to 31 March 2033.

 

The approach allows establishing the new contracts through the new FM service delivery model and allows flexibility in line with wider local government changes in the future. In the first year of the new contract, comprehensive asset data will be collected, and associated planned preventive maintenance (ppm) regimes will be reviewed in collaboration with the appointed contractor. This process will ensure that the scope and value of ppm works for subsequent years are accurately defined, using the initial tender price submissions as a reference point.

Supporting documents: