Ministry haulage boom
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by Karen Miles • Multi-million-pound distribution opportunities are up for grabs as the Government announced last week a fifty-fold increase in the amount of Civil Service work which is on offer to the private sector.
Distribution, storage, courier, fire service and vehicle maintenance contracts in at least five government departments are expected to go out to tender. Operators should be bidding for work at the Ministry of Defence, Home Office, Inland Revenue, Ministry of Agriculture and Foreign Office.
The initiative comes from Citizens Charter Minister William Waldegrave, who has told the Civil Service to "market test" £1.5 billion worth of business by next September. Market testing involves inviting bids from the Civil Service's own workforce and outside contractors. The lowest bid will not automatically win the business. It is not yet clear if Civil Service terms and conditions will have to be paid by private contractors taking on Government employees. The Transport and General Workers Union has met Treasury officials to air its members' fears about reduced benefits and job losses.
The Ministry of Defence looks likely to be the most lucrative department for operators: it is to market test freight delivery for the Army and Navy. It will also put out to tender the transport at Navy bases at Portsmouth and Devonport, and vehicle maintenance at Portsmouth. Fire fighting, including the running of fire engines, is due to go out to tender at three Air Force and one Army base.
Distribution specialists are also set to pick up work in prisons.
The Home Office says tender documents have gone out for national warehousing and distribution for the Prison Service.
Transport Development Group's Beck & Pollitzer is holding talks with the Government which are believed to be about taking over a warehouse at Branston, Staffs which employs 120 staff.