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Dept for Work and Pensions

Answer

Tim Loughton: To ask the Secretary of State for Work and Pensions what competitive processes were followed leading up to the sale of former Department of Social Security buildings to LandSecurities Trillium; and which other bidders were involved. [189415] Maria Eagle: In April 1996, the Departmental Board of the former Department of Social Security agreed a feasibility study to identify and examine a range of options for the future management of the DSS Estate. The study, known as PRIME (Private Sector Resource Initiative for Management of the Estate), concluded that greater efficiency could be achieved if both ownership and management of the Estate was transferred to the private sector. The opportunity was advertised on 28 June 1996 in the Financial Times and in the European Journal in accordance with EEC/GATT rules. Thirty initial written response were received, and a sift exercise was completed, from which six candidates were chosen. Three consortia were selected to go forward to the final selection process. However, all three consortia had placed a lot of conditions on their tender submissions which could have had a material effect on the final price. It was agreed, therefore, to extend the procurement process to a fourth stage. Consequently, two consortia, Mapeley Holdings Ltd. and PPM (Partnership Property Management Ltd.), now known as LandSecurities Trillium, were invited to submit best and final offers which removed all conditions. Following evaluation of the tenders, Trillium was chosen as preferred supplier. This was endorsed by the Departmental Board at their July meeting and, after obtaining Ministerial agreement, an announcement was made on 31 July 1997. The finer details of the contract were negotiated through to December and an agreement was formally signed at mid-day on Christmas Eve. The evaluation process was a tightly controlled three stage procedure and included eight review groups with technical and operational representatives from across DSS, and who were independent from the project team.

Secondary information

Type

Written question

Reference

425 c1181-2W; 189415

Session

2003-04

Subjects

Buildings Department of Social Security Private sector Property transfer Sales Trillium

Link

View this Written question on www.publications.parliament.uk