Airport operator says it will spend £9.5bn across nine airports
BAA, the airport operator, this week launched its procurement strategy for the next 10 years, a period over which it says it will invest £9.5bn across nine airports.
BAA has split its future work into four areas – complex, commodity, technical and critical business systems and consultants – which is a break with tradition and will see the transfer of greater risk to suppliers.
The company, now under its new owner the Spanish contractor Ferrovial, said that OJEU notices would be issued starting from next week for the next generation of framework partners that will help it deliver major future projects including Heathrow East and Stansted Generation 2.
BAA insisted that it was still committed to its partnering approach but said at the same time that “greater commercial tension” was part of the driving force behind change.
Complex projects will involve 10-year framework agreements on projects including Heathrow East and Stansted Generation 2. BAA will appoint first and second tier suppliers and design consultants. It will own and manage the risk, and there will be a greater emphasis on design for manufacture. A key element of complex projects will be fewer suppliers and reduced level of direct interfaces with BAA.
On commodity projects, like car parks and minor refurbishments, BAA will appoint a shortlist of suppliers to a three to five year framework, and those suppliers will carry the risk.
BAA will appoint a shortlist of suppliers for up to 10 years for both technical and critical business systems and consultant work.
Mike Temple, head of BAA’s capital projects said that the new framework arrangements were being made because some of its existing frameworks had come to an end or would do soon, including T5.
“The new agreements reinforce BAA’s commitment to long-term relationships with its suppliers and also recognise the need for greater commercial tension,” he said.
