Indigenous firm wins federal property service tender

By Tom Burton

September 18, 2017

An indigenous firm, Evolve FM, has jointly won a major Commonwealth property management contract, as part of a program to drive $300 million in savings over the next decade through rationalisation of the surplus property holdings.

Evolve joins global providers Broadspectrum and Jones Lang LaSalle to provide leasing and facilities management services to over 90 Commonwealth entities.

These appointments are part of the Department of Finance’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,” according to the Minister for Finance, Senator Mathias Cormann.

“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.”

The appointments are for an initial term until 30 June 2021, with possible extensions of up to a further four years.

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