Leading housing and care management organization is restructuring its procurement process to increase competition and quality
San Francisco, CA -- (SBWIRE) -- 08/26/2013 -- In November 2011, Midland Heart began a new procurement process for its Environmental Services. Midland Heart is a leading housing and care management organization located in the Midlands region of the United Kingdom. The company supplies and maintains housing for more than 70,000 people in 32,000 housing units across the Midlands. Their customers pay for local ‘Environmental Services,’ which maintain local grounds, communal areas and for window cleaning services on the properties. The new process is designed to encourage competition while delivering social value.
Greater scrutiny than ever before is taking place with the introduction of welfare reforms in the form of who is providing the work along with the cost and quality of services delivered. Many residents of the housing units are seeing their finances coming under increasing pressure. Midland Heart’s Environmental Service contracts must now be procured through the Official Journal of European Union (OJEU). Many local small and medium service enterprises did not get through initial stages of the procurement process, as Midland Heart procurement team discovered when they tendered through OJEU in 2007 for the first time. These included local firms Midland Heart had been employing for many years -- with affordable services and quality results. This severely limited the choices the company had in the tender processes.
This time around (2013) with OJEU Midland Heart wanted a ‘level the playing field’ to select more candidates for contracts during the tender processes and Pre Qualification Questionnaire (PQQ). Prices will be driven down and quality of service would be driven up by increasing choice and competition, in theory. Neil Whittenbury, with Midland Heart summed up the new process, “Procurement is the starting point of good contract management. The balance of power with the contractor and Midland Heart has to be right. The contracts include soft landing periods on key performance indicators, allowing the contractor to grow and learn. Equally if it doesn’t work, it is less complicated to re-open the tender process for a smaller contract.”
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