G4S to buy ISS?

[tbtc]

Personnally I would like to see back end to both these companies & others being sub contracted to working on railways

...but you could argue that the whole Privatisation model is based on sub contracting. The Government sub contract the running of the railway to various organisations (Network Rail, Stagecoach, First etc), these then sub contract functions to other companies (cleaning, maintenance, IT etc).

I can't imagine there's any company left which doesn't sub contract at least part of its functions to another (and I speak from experience)

 

[blacknight]

Using East Coast as an example its as been reported its paid 177million direct into DfT this year, no share holders taking a cut so it could be rolled out as example for future "state" operated business so is whats to stop D.O.R bidding for other franchises.

 

[HSTEd]

Using East Coast as an example its as been reported its paid 177million direct into DfT this year, no share holders taking a cut so it could be rolled out as example for future "state" operated business so is whats to stop D.O.R bidding for other franchises.

The Railways Act 1993 specifically prohibits this.

It must go to the Private sector in the bidding process.

 

[tbtc]

Using East Coast as an example its as been reported its paid 177million direct into DfT this year, no share holders taking a cut so it could be rolled out as example for future "state" operated business so is whats to stop D.O.R bidding for other franchises.

But how does that compare to a private TOC running the same franchise?

GNER and NXEC both promised to return hefty "premiums" to the Government, on top of their own profits (albeit neither quite panned out that way...), so you can't take the fact that DOR made a profit running the ECML franchise as evidence that the same would happen elsewhere (since the ECML franchise is a profitable one).

 

[AndrewP]

The merger made sense on some levels but G4S were not the most obvious suitor for ISS.

What this does mean is that ISS are very much for sale (they are owned by a part of Goldman Sachs) so expect further bids soon.

As for companies in the FM market the quality of service depends on how the contract is managed at an operational level. The company does not really matter (as long as it is solvent and ethical).

Problems tend to arise from lazy procurement - just going on headline figure and not looking at the service proposal. In facilities management the labour and materials requirements are broadly fixed so it is only margin and service that has scope for variance.

If anyone needs procurement in this sector send me a message!

 

[Xenophon PCDGS]

As for companies in the FM market the quality of service depends on how the contract is managed at an operational level. The company does not really matter (as long as it is solvent and ethical). Problems tend to arise from lazy procurement - just going on headline figure and not looking at the service proposal. In facilities management, the labour and materials requirements are broadly fixed, so it is only margin and service that has scope for variance.

You have summarised the matter of project facilities management excellently in what you have stated above. Mitie have been mentioned in the past and at least they have some experience of the division of FM in industry in which ISS are broadly based, whereas G4S would be new entrants into this field of operations.

 

[cointreau_rove]

The merger made sense on some levels but G4S were not the most obvious suitor for ISS.

What this does mean is that ISS are very much for sale (they are owned by a part of Goldman Sachs) so expect further bids soon.

As for companies in the FM market the quality of service depends on how the contract is managed at an operational level. The company does not really matter (as long as it is solvent and ethical).

Problems tend to arise from lazy procurement - just going on headline figure and not looking at the service proposal. In facilities management the labour and materials requirements are broadly fixed so it is only margin and service that has scope for variance.

If anyone needs procurement in this sector send me a message!

Spot on...

Your summary lists reasons why I have "sacked" companies from FM and so called Intelligent Client Services (always a problem where no intelligent client exists).

The G4S/ISS merger would have created a million + employee group - almost a state within the state....

C