REF 32 - Outsourced companies

Request

The recent collapse of Carillion has left important public services at risk as well as put at risk the job security of thousands of workers.  There are now serious concerns about the future of more major outsourcing companies who have contracts with devolved Scottish Government bodies.  Just as in the case of Carillion, Capita and Interserve have issued profit warnings in the past months.

We are concerned that all of the indications are that any outsourcing of Government sector work poses serious risks both to the service and to those staff employed by contractors to deliver them.

We are therefore requesting the following information from employers, including CES(IM)

1. i)  What contractual arrangements exist with private sector contractors?
2. ii)  How many workers are affected and where they are located?
3. iii)  What risk assessments exist or are underway to test the health of private sector contractors?

Response

In relation to point one, please find below the information you have requested.

Crown Estate Scotland (Interim Management) have outsourcing arrangements in place as follows:

1.    Managing Agents (Rural Portfolio) – Savills plc

• Provide property management services for Rural Portfolio from 2 locations (Dumfries and Fochabers)
• Provide data hosting for Rural and Minerals & Mines Royal Portfolios
• 3-year appointment (to 31.3.20)
• Crown Estate Scotland have right to terminate appointment immediately in event of formal insolvency proceedings
• Crown Estate Scotland may assign any of their rights or responsibilities at any time during the appointment.
• Replacement via competitive tender
• Other suppliers available, if required

2.    Managing Agents (Coastal Portfolio) – Bidwells LLP

• Provide property management services for Coastal Portfolio from 2 main locations (Perth and Inverness)
• Provide data hosting services for Coastal, Aquaculture and Energy & Infrastructure Portfolios
• Crown Estate Scotland may assign any of their rights or responsibilities at any time during the appointment.
• Crown Estate Scotland have right to terminate appointment immediately in event of formal insolvency proceedings
• 3-year appointment (to 31.3.20)
• Replacement via competitive tender
• Other suppliers available, if required

3.    Managing Agents (Minerals & Mines Royal Portfolio) – Wardell Armstrong

• Provide property management services for Minerals & Mines Royal Portfolio from Stoke on Trent office
• Crown Estate Scotland may assign any of their rights or responsibilities at any time during the appointment.
• Crown Estate Scotland have right to terminate appointment immediately in event of formal insolvency proceedings
• 3-year appointment (to 31.3.20)
• Replacement via competitive tender
• Other suppliers available, if required

4.    HSE Advisors – Greens of Haddington

• Provide expert HSE support/ advice
• 1-year appointment (to 31.3.19)
• Replacement via competitive tender
• Other suppliers available, if required

5.    IT Support Services – Consilium, Paisley

• Provide IT support services
• 1-year appointment (to 31.3.19)
• Replacement via competitive tender
• Other suppliers available, if required

6.    Legal Services – Anderson Strathern

• Provide legal services for Crown Estate Scotland
• 3-year appointment (to 31.3.18)
• Crown Estate Scotland may assign any of their rights or responsibilities at any time during the appointment.
• Replacement via competitive tender
• Other suppliers available, if required

In relation to point two:

Whilst our aim is to provide information whenever possible, in this instance we are unable to provide the information you have requested.  It is difficult to ascertain specifically how many workers would be affected by the insolvency of one or more of the private companies listed above. In the event of the demise of one of the contractors, another contractor would be sourced promptly. 

This is a formal notice under section 17(1) of FOISA that the Crown Estate Scotland (Interim Management) does not have the information you have requested.

In relation to point three:

Financial strength of company tested during competitive tender process, generally via assessment of financial accounts and/or credit rating.

Inherent risk mitigation measures include:

• Contractors all paid in arrears (i.e. no monies paid prior to service being delivered
• Contracts incorporate assignation/ termination rights
• Alternative suppliers are available in all sectors