The MHA Agency aims to reap efficiency gains of up to 10%, speed up the procurement process and deliver schemes to a higher standard.
Spend is expected to increase to £150 million in following years as public bodies are placed under greater pressure to realise efficiency gains in the face of spending constraints.
The Medium Schemes Framework is for new highway schemes each valued at up to £8M. The MHA estimates that its local authority members will procure projects worth around £48 million through this new framework in the first year with the Highways Agency procuring a further £50m.
The MF3 contract - which will run from the end of November 2007 until June 2010, with the option of a one-year extension - is valued at approximately £30M per year.
Hilary Chipping, Procurement Director at the Highways Agency said, "We are pleased to be part of the Midlands Highways Alliance, the first partnership of its kind and leading the way for driving forward the delivery of real efficiency savings across projects in highways authorities."