research-report-96-coming-clean-contractual-and-procurement-practices.doc

Flights and been replaced by low cost airlines and

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flights and been replaced by low cost airlines and new carriers from the Middle-East and Asia. This has negatively affected the ability of airports to derive revenue. A particular challenge concerns the need for strong coordination between various, interdependent activities that are often the responsibility of different organisations. Airports are multi-employer sites involving ‘a complex process of contracting and recontracting’ (Rubery et al., 2003: 272). It means that the procurement of a support service like cleaning is not an appendix to core operations, as it may be in other industries, but one among many contracting relations that shape the quality of service provision. The case study AirportE is a medium sized airport in the UK and offers both domestic and international flights by various traditional and low-cost carriers. Its ownership structure is mixed, with both public and private investors. The cleaning services are provided by a large outsourcing company, CleanA1, which provides facilities, property and energy management for a wide range of public and private sector businesses. 37
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COMING CLEAN: CONTRACTUAL AND PROCUREMENT PRACTICES 6.2 Procurement Reasons for outsourcing AirportE had previously organised cleaning through a mixture of in-house and third party provision as it had outsourced cleaning for a newly constructed terminal while maintaining in-house provision for the existing terminal. The decision to outsource all cleaning came in response to the increased competitive pressures after 9/11 when several bigger airlines pulled out, and the ageing of the staff in the original terminal one. These workers were offered generous redundancy packages and many accepted this, also because they were often rather close to retirement. Only one or two workers moved into other airport jobs and a handful moved to the cleaning company under TUPE. The decision to outsource all cleaning activities was thus driven by a combination of costs and workforce considerations. The cleaning tasks at AirportE cover the terminals, all the common areas (everything except for the concession areas), the outline buildings, the air traffic tower, the office blocks, the police station, the fire services, the engineering department, the hangar and the transport link. Tendering and the contract In accordance with EU legislation on procurement by utility organisations, AirportE is required to publically announce any tender. Around 20 organisations typically express an initial interest at tender stage, but this is then whittled down to around six bidders based on their capabilities and experience as assessed through a Pre- Qualification Questionnaire (PQQ). The contract with CleanA1 was agreed in 2012 when it took over from the previous provider. At the time, AirportE amalgamated different outsourcing contracts into one big contract which, besides cleaning, includes food waste recycling, washroom waste, and pest control. The contract involved the transfer of approximately 70
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