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TfL saves £30m by merging facilities management contracts

May 8, 2017 - Martin Hoscik@MayorWatch

Transport bosses say they’ve saved taxpayers £34m by consolidating 50 contracts covering security, reception, cleaning and facilities management services into just 6, cutting procurement costs and benefitting from supplier efficiencies.

The new contracts, which have a total value of £320m, will last for five years with an option to extend them for a further three.

All suppliers have committed to paying London Living Wage and Transport for London says an “additional” 300 apprenticeships will be created throughout the life of the six contracts.

The agency says the savings achieved will help it meet the efficiency savings mandated by Mayor Sadiq Khan.

David Wylie, Chief Procurement Officer at TfL, said: “We are looking forward to working with our suppliers on these new contracts and by consolidating the existing arrangements, our facilities will be managed in a more efficient and cost-effective way.

“We are committed to making sure that our organisation is representative of the customers that it serves and inspiring the next generation into the transport industry.

“These new contracts reaffirm how both TfL and our suppliers consider skills and equality and diversity to be key priorities that we need to deliver on.”

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