NHS property company takes multimillion pound contract in-house

NHS Property Services, which is responsible for the maintenance of 3,500 NHS properties across England, has taken control of “hard” facilities management services which were previously provided by outsourcing giant Mitie.

It comes after a review by NHSPS, which determined what services across its portfolio the company should provide directly, rather than outsource.

NHSPS is a company wholly owned by the health secretary. Its existence has been mired in controversy by new rental charges for GPs and an inability to act as an effective landlord due to the way in which it was set up.

Mitie has been providing maintenance services — such as plumbing, electrical, mechanical, water and fire safety systems, and lighting — at NHSPS’ properties since 2016. Prior to this, FM services at these premises were carried out by various suppliers under hundreds of different contracts. 

Mitie’s contract with NHSPS was for three years with the option of two one-year extensions. NHSPS extended the contract for one year in 2019.

Neither company would disclose the value of the contract. In 2016 — upon winning the deal — Mitie said the contract in its entirety was worth in excess of £100m, although the figure included the full five-year term. 

NHSPS’ new chief executive Martin Steele said taking the service in-house meant NHSPS would achieve “significant cost efficiencies” and “greater control over the standard and flexibility” of its service.

Around 140 Mitie employees have transferred to NHSPS as part of the changes.

However, Mitie will continue to provide certain other services — such as air conditioning, heating and gas — after a contract for those services was extended by a year.

NHSPS would not disclose the size of any savings or what the value of the work Mitie will retain is.

Other FM services at NHSPS’ properties are also carried out by Chubb, PTSG, and Dale on one to three-year contracts. 

NHSPS’ former chief executive Elaine Hewitt stood down from the company earlier this year.