Suspension of Workplace 2010 Procurement

The Department of Finance and Personnel has announced a suspension, until early 2009, in the procurement of Workplace 2010.

Workplace 2010 is the major accommodation project in support of the wider reform agenda currently being implemented across the Northern Ireland Civil Service (NICS). It aims to create a modern, flexible working environment and to support new working practices.

A spokesman for the department explained the reason for the move: “This decision has been taken as a result of continuing speculation that both bidders could come under common ownership, which has the potential to affect the Workplace 2010 procurement. The suspension will also give the department time to assess the impact of recent changes in the financial and property markets.

“The minister continues to affirm the importance of the Workplace 2010 principles, and the NICS remains committed to creating a modern, flexible working environment that will enable the delivery of better public services.”

Both Bidders are in agreement with this suspension.

Notes to Editors:

Background

Workplace 2010 was initiated by the Northern Ireland Civil Service as a means of creating a modern, flexible working environment and to support new working practices. The programme is to be delivered through a Private Finance Initiative (PFI) solution. This means that ownership of around 65 properties will transfer to a private sector partner (PSP) in return for a capital payment. The PSP will then be responsible for investing in a major refurbishment programme on a range of buildings. They will also be responsible for moving staff out of, and into, the buildings concerned during the refurbishment

and will maintain the properties for the lifetime of the contract and deliver a range of accommodation related services.

Objectives

The overall objectives of Workplace 2010 are:

• To provide accommodation that will enable the civil service to transform the way it delivers public services;
• To provide accommodation that is fit for purpose in which staff are proud to work; and
• To safeguard funding for priority front line services.

Procurement Status

The two remaining bidders for the Workplace 2010 contract, Land Securities Trillium and Telereal, submitted their best and final offers on 2nd June 2008. The procurement process is now suspended until further notice but will be reviewed again in January 2009.

Bidder Status

Land Securities Group, owner of LS Trillium, one of the remaining bidders for the Workplace 2010 contract, is in the process of evaluating a sale of the LS Trillium business.