Property Contract to Save $11.9 Million for NSW Taxpayers

CEO of Government Property NSW, Brett Newman, today announced the appointment of Jones Lang LaSalle to deliver outsourced property and facilities management services for the Government’s owned and leased property portfolio.

Mr Newman said the new integrated contract is worth $40 million over five years and represents a great outcome for Government.

“Broader scope of services, ability to leverage global best practice and strong emphasis on innovation through technology platforms will enable GPNSW tenants to have access to detailed reporting metrics relating to their portfolios,” Mr Newman said.

This enhanced focus on measuring and reporting will encourage continuous improvement and innovation throughout the contract term, as the NSW Government will be able to track performance against other sector benchmarks.

“The new contract has an increased scope of services and will drive greater efficiencies, reduce duplication and save taxpayers an estimated $11.9 million over five years,” Mr Newman said.

JLL’s Head of Government, Corporate Solutions, Steve Mackintosh said, “By consolidating all operations under one partner, JLL will offer efficiencies and can better support GPNSW in its whole-of-government approach to facilities and property management.”

The contract is anticipated to go live at the beginning of August 2016 following a three month transition process commencing May 2016.

The appointment follows a rigorous and competitive Request for Tender process in line with NSW Government probity and procurement requirements.

“The new contract will ensure the Government extracts the highest quality services for its property portfolio at the best value for money,” Mr Newman said.

The contract includes a risk value component that will incentivise the operator to meet performance targets, ultimately leading to greater accountability and improved levels of service.

Mr Newman said outsourcing property services is a strategy which has been used extensively across government and the corporate sector to deliver service improvements and innovation.

“The move to a more efficient, integrated property asset management framework aligns with the principles of the Property Asset Utilisation Taskforce report in 2012 and will position us to service our property portfolio over the coming years,” he said.