An important initiative to drive greater efficiency in the management of the Commonwealth’s property portfolio is now being implemented following the appointment of three property service providers.
The providers are Broadspectrum Property Pty Ltd (Broadspectrum), Evolve FM Pty Ltd (Evolve FM), and Jones Lang LaSalle (ACT) Pty Ltd (JLL). They will provide leasing and facilities management services to over 90 Commonwealth entities.
These appointments are part of the Government’s plan to realise further savings in excess of $100 million in property-related expenditure over the four years of the contracts, including through consolidating the Commonwealth’s buying power.
The new property service provider arrangements complement other efficiency measures already in place, including Operation Tetris, which is on track to realise savings of $300 million over 10 years through reductions in surplus leased property holdings.
The appointment of the providers followed an open tender process and represents strong outcomes for Indigenous business and small to medium enterprises (SMEs). Each Property Service Provider has committed to exceed the Indigenous Procurement Policy targets of 3 per cent for levels of Indigenous employment and/or engagement of downstream contractors. The Property Service Providers are also required to meet or exceed the Government’s SME targets of 10 per cent of downstream contract value.
Broadspectrum and JLL are large, established global providers. Evolve FM is an Australian-based, Indigenous-owned company.
The appointments are for an initial term until 30 June 2021, with possible extensions of up to a further four years.