Who’s looking after the federal government’s properties?

Parliament House in Canberra.
Parliament House in Canberra.

The federal government has tapped a series of new providers to manage the commonwealth’s property portfolio as it looks to drive greater efficiencies across its holdings.

The government appointed two global groups, Broadspectrum Property and JLL, alongside local firm and Evolve FM, to provide leasing and facilities management services to more than 90 commonwealth entities. The move sees one of the incumbent providers, Cushman & Wakefield, lose a slice of government work, but it has broad-based corporate services businesses.

Broadspectrum, formerly known as Transfield Services, was listed until mid-2016 when it was acquired by Ferrovial.

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The company’s property arm will deliver services to 37 different Australian government entities.

Broadspectrum Property, head of corporate real estate, Emma Forster-Mitrovski, says the group will work with Colliers International as a key subcontractor.

Broadspectrum has previously provided facilities management for groups including the Department of Defence and BlueScope.

JLL will service 34 government entities, covering more than 3.6 million sqm across more than 3200 leased and owned properties.

It is absolutely a game changer with the federal government appointing an SME, a new player who just happens to be indigenous-owned

JLL’s managing director, integrated facilities management, Australasia, Chris Hunt says the major new federal government contracts built on the firm’s strong platform of government clients. Evolve FM — a joint venture with PSG Holdings where JLL is the minority stakeholder — was appointed as service provider to more than 20 commonwealth entities.

Evolve is the only indigenous majority-owned full-service facilities management company and chief executive Mark Coleman says it is “probably the single most significant contract to ever be won by an indigenous business”.

“It is absolutely a game changer with the federal government appointing an SME, a new player who just happens to be indigenous-owned,” he says.

Each of the providers has committed to exceed the indigenous procurement policy targets of 3% for levels of indigenous employment and engagement of downstream contractors.

They are also required to meet or exceed the government’s small to medium enterprise targets of 10% of downstream contract value. The appointments are for an initial term until June 2021.

This article originally appeared on www.theaustralian.com.au/property.