Department for Environment, Food and Rural Affairs
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Defra workplace management contract awarded to Interserve

Defra workplace management contract awarded to Interserve

DEPARTMENT FOR ENVIRONMENT, FOOD AND RURAL AFFAIRS News Release (380/08) issued by COI News Distribution Service. 5 December 2008

An innovative contract that will help Defra buildings achieve sustainability targets and provide workplace services management has been awarded to Interserve (Facilities Management) Ltd.

The 15-year Sustainable Built Environmental & Workplace Support services
contract has a core-services value of approximately £500 million and a potential value for non-core services of £400 million. The contract covers Defra estates throughout England and Wales. The benefits include:

* annual and continuing cost reductions, totalling £126m over the 15 year term of the contract;

* a commitment to investing in the Defra estate achieving and exceeding sustainability targets for waste and recycling, energy and water consumption, carbon emission and biodiversity;

* continuing investment in sustainability and environmental performance, aimed at influencing behavioural change, accommodation use and exceeding longer term Sustainable Operations on the Government Estate (SOGE) targets.

* a flexible contract for a maximum of 15 years; and

* single national point of contact for building and accommodation needs for Defra.

Helen Ghosh, Defra's Permanent Secretary said:

"I am pleased to announce that Interserve have been selected to take forward Defra's Sustainable Built Environment and Workplace services contract. This contract will provide excellent value for money and cost savings. Interserve is committed to investing in the Defra estate and will play a major role in helping Defra exceed its sustainability targets so that we can lead the way in sustainable Government."

Adrian Ringrose, Interserve's Chief Executive said:

"Defra's vision required a fresh approach to service delivery. Our response is a total accommodation service model that encompasses sustainability, exemplar facilities management service, asset management and space and workplace management. We have selected, combined and developed the best practices from across PFI, PPP and traditional FM contracting into a unique, responsive and innovative service model."

Defra's existing facilities management contracts are due to expire at the end of March 2009 and Interserve will take over in April 2009. During the interim period Interserve will work closely with Defra's current teams to ensure a smooth transition.

Notes to Editors:

1. The SBEWS contract covers 186 sites. It includes three Category 4 laboratories, 39 Category 3 laboratories, 226 other laboratories and 162 offices.

2. Existing facilities' management staff that provide services to Defra will transfer to Interserve.

3. Core services include building maintenance/servicing, security, cleaning and reception. Non-core services include project works such as building refurbishments or improvements.

4. Interserve Plc (http://www.interserve.com) is a services, maintenance and building group operating in the public and private sectors in the UK and internationally. It offers advice, design, construction and maintenance services for buildings and infrastructure, runs the operational systems and back-office services that support them and provides a range of plant and equipment in specialist fields. Interserve is based in the UK and is a FTSE 250 company. It has revenue of £1.7 billion and a workforce of 50,000 people worldwide.

For further information please contact:

Giles Scott 0118 960 2307
Head of Corporate Communications, Interserve

Elizabeth Morley / Tom Siveyer 020 7379 5151
Maitland

Public enquiries 08459 335577;
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