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BAA cuts framework contracts

AIRPORT OPERATOR BAA said this week that it plans to halve the number of firms it employs under framework contracts.

Cuts in the number of framework contracts awarded will take place as existing agreements come up for renewal next year, said BAA supply chain director for procurement Martin Plimmer. Overall BAA wants to cut its contracts to 1,000.

BAA will begin renewing construction and civil engineering frameworks next year, Plimmer said. Some 75 consultants and contractors will be affected.

The airport operator has already renewed contracts for supply and maintenance of lifts and escalators and is in the process of renewing contracts for cost consultancy.

Under its second generation frameworks BAA is looking to improve on value for money already achieved since the first agreements were introduced five years ago. It will demand suppliers cut costs and improve performance in exchange for greater certainty and volume of work.

BAA will evaluate contract winners' performance at set stages throughout the life of a framework. They will be judged on management culture, understanding of BAA culture, health, safety and environmental performance, process management, price, the ability to deliver continuous improvement and previous performance record.

Though frameworks are let for a minimum of five years, contracts will be renewed annually.

Frameworks will run for a maximum of 10 years.

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