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Rentokil Initial secures £200m contract with London Underground

04 March 2010

Transport for London 2005 (c)

Initial Specialist Services, part of the Initial Facilities Services division of Rentokil Initial, has signed a contract worth £200m over five years with London Underground for cleaning and maintenance activities in stations and depots.

In this the largest single contract by value won by Rentokil Initial,  Initial Specialist Services will provide London Underground with a comprehensive range of cleaning and maintenance services including station, tube fleet and depot cleaning, track litter cleaning, ventilation shaft cleaning and white and yellow line painting. The contract was won following a competitive six-month tender and evaluation process.
By changing its procurement process, London Underground saves more than £100m through streamlined maintenance contracts. LU’s Maintenance section has let four new main service contracts following the restructure and rationalisation of nearly 100 separate contracts.  The directorate, which carries out all routine maintenance across the Bakerloo, Central, Victoria, Waterloo & City, Circle, Hammersmith & City, District and Metropolitan lines, has let the contracts after a full-scale review of procurement from third-party suppliers.
Previous procurement of goods and services had meant that 56 suppliers were engaged by the Maintenance directorate, with 99 individual contracts. The new Total Purchased Services (TPS) contracts will enable greater economies of scale to be achieved, along with standardisation of service levels and consistent contract management. Over the course of the contracts – an initial period of five years with the option for LU to extend for an additional two years – it is estimated that TPS will save LU more than £100m.
Covering track, fleet, stations and depots, the contracts are for the provision of planned maintenance and repair services, building services, track plant hire and track labour supply 24 hours a day every day of the year. In addition, four multi-provider framework agreements for additional remedial and ad-hoc works have been entered into.
Phil Hufton, London Underground’s Chief Maintenance Officer, said: “By bundling our maintenance requirements into four service packages and awarding each lot to a single supplier through a tendering process, we’ve been able to get more bang for our buck and achieve significant savings across the contracts.  By streamlining our contracts in this way, we can ensure that we continue to put the much-needed investment into the Tube while delivering the best possible value for London’s fare and tax payers.”

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