It is likely that most of the major players in the FM market will be bidding for the BBC’s huge property outsourcing project, announced last week (see yesterday’s News item). However, the BBC’s public sector culture and the high cost of participating, will give some potential bidders pause for thought.

Steve Lee, MD of Citex, said they had been talking to the BBC for some time: "We’re excited by the prospect – it’s huge but achievable." Trillium, Eurica and Carillion also confirmed that they were likely to pursue the opportunity. Fred Guscott of Eurica stressed the major commitment of resources that would be needed to mount a bid: "If you’re going to go for something like this you need to do it properly – the bid costs are a significant issue." He thought it likely that the development opportunities at White City would see real estate companies taking the lead in consortia.

Johnson Controls were more circumspect, a spokesman told i-FM: "The opportunity is certainly of interest to us but it will not be an automatic decision to bid. The BBC has a strong in-house culture and a track-record of protracted discussions that have come to nothing. Johnson Controls is reluctant to get involved in tenders with a large number of bidders, when there are other commercial opportunities based on our relationships with fast-moving organisations able to make quick decisions."

The BBC added more detail to the bare facts of the OJEC notice issued last week. The Corporation’s property strategy, 2020 Vision aims to make buildings more cost efficient, flexible and comfortable for staff and visitors, at no extra cost to the licence fee payer.
John Smith, BBC Director of Finance said: "The BBC has 7.5 million sq ft (700,000 sq m) of space in 522 buildings in the UK. Many of these are in poor repair and some in inaccessible locations. We want to open our buildings to licence payers and incorporate the idea of open learning centres. The whole of the portfolio also needs to be rationalised and up-graded to take account of the technology revolution sweeping society."

Since 1993 the BBC has disposed of one million square feet of surplus space (93,000 sq m), realising £20m and on-going savings of £15m a year. The property strategy will be implemented in three stages:

• the London estate 2000 - 2007
  
• 80 regional properties which require urgent action 2000 - 2010
  
• remainder of the estate 2010 -2015

The extensive White City site in west London was purchased in the mid-1980s. One 40,000 square metre building opened in 1991. There is nearly seven acres of land adjacent, of which 60,000 square metres is available for development. No decisions have been taken on which departments may occupy the site but the Broadcasting Centre, which transmits programmes, is one possible option. The BBC is re-negotiating its lease on Bush House, which expires in 2005. The UK estate outside central London consists of 450,000 sq m.

John Smith added: "We recognise that a major property programme is expensive and risky so we are looking for private sector partners to bring the necessary finance, development and project management skills." The BBC would have a substantial share in the partnership.
N M Rothschild and Sons Limited, with DTZ Pieda Consulting, is managing the procurement process for the BBC. Expressions of interest must be in by 25 May, six providers will be asked to tender and the Corporation expects to announce a partner in February next year.

Richard Byatt