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​​Outsourcing facilities management services or in-house staff

​The decision as to whether to outsource facilities management services or have in-house staff undertake such services will be based on an objective assessment of service requirements, in-house expertise and specialist needs and cost.

Agencies who do not have the resources or the relevant experience within their property teams to undertake the facilities management services in whole or in part, could approach another agency who does have the resources to undertake the services on their behalf.

The decision as to which sourcing option to choose should not be made based on just one criteria, for example, it is cheaper to outsource. The decision is a significant strategic decision and should be made taking all relevant factors into account. Agencies should evaluate the efficiencies to be achieved through each option, assess the importance of transferring risk from the agency, assess whether it will free up agency staff time to focus on other services, and consider the possibility of bringing in required specialist staff to achieve cost savings. If a decision to outsource is made, when procuring service providers, agencies should do so through a Common Capability Contract, where such contracts are available.

Common capability contracts

The decision to outsource should stand for the contract period, which is commonly three to five years. If the contract period is for a longer duration, the contract should still be reviewed every three to five years.

It is important that the provider’s performance is reviewed against agreed key performance indicators on a regular basis. At the start of a contract some of these measures should be reported on a monthly basis. The cycle for reviews should be amended as performance and confidence builds.

Key sourcing options

  • In-house: Undertaking the facilities management services within the agency.
  • Outsourcing: Placing the facilities management services with an external organisation or contractor.
  • Cross Agency Sourcing: Utilising resources from another government agency.