Strategic partnership for NSW Police property portfolio

By John Shirbin and Daina Richmond.

Key Points:
The strategic partnership balances the private sector's expertise with the need for public sector oversight and control.

The NSW Government recently entered into a five year contract with United Group Services Limited to manage the NSW Police Property Portfolio. The Police Property Portfolio is a diverse portfolio, consisting of approximately 1200 properties, including police stations, commercial offices, residential properties and specialist facilities.

By entering into the arrangement with United Group Services, the NSW Government aims to:

• develop property strategies to best support NSW Police services;
• manage the capital works projects to ensure delivery of projects on time, within budget and to agreed quality standards; and
• provide financial and business management of the Police Property Portfolio consistent with leading industry practice.

Under the partnership the government takes advantage of United's expertise in managing and developing property, while maintaining its control of decisions about the Police Property Portfolio. Services to be provided by United Group Services include:

• Management and Administration of the Police Property Portfolio
• Asset and Property Management (including lease administration)
• Management and Administration of the Capital Works Program
• Divestment and Acquisition Services
• Facilities Management.

For many years, the private sector has provided facilities management (FM) services for property portfolios utilised and managed by public sector departments and agencies. Under the arrangement for the Police Property Portfolio, United will provide a broader range of services than seen in those traditional arrangements for FM services. Strategic advice and services relating to all aspects of the management and administration of the Police Property Portfolio will be provided. Despite the broad and strategic nature of the services to be provided, the contract arrangements have been structured to ensure that the NSW Government retains its role as decision-maker in respect of the property portfolio. This ensures that government and the service provider can respond to NSW Police's ongoing operational requirements. The arrangements have also been tailored to align with NSW Treasury's asset management reporting and planning requirements.

Clayton Utz advised the NSW Government on this project.

For further information, please contact John Shirbin and Daina Richmond.