Amey has been awarded the Highways Agency asset support contract (ASC) in Area 6.
The contract is worth up to £200 million over five years and will see Amey manage and maintain over 600 miles of strategic roads across East Anglia.
It is valued at between £30 and £40 million per annum, and will go live from 1 April 2014.
Asset support contracts form the basis for delivering maintenance, renewal and improvement services for most parts of England’s motorway and trunk road network and are expected to deliver substantial savings over the current arrangements.
David Brewer, the Highways Agency’s asset delivery director, said: “ASCs are more outcomes based and less prescriptive, enabling our suppliers to be more innovative about the way their services are delivered.
“Better value is what we are looking for – from our contractors, on behalf of the taxpayer. The key point is that the roads they manage on our behalf continue to be maintained to high standards and that we receive good value for every pound of public money which is spent.”
Mel Ewell, Amey’s chief executive, said: “We have a long and proud history of successful strategic highways service delivery and this award underpins our commitment to remaining a key service provider to the Highways Agency.”
Key features of the new contracts include:
• Maintenance standards which are ‘outcome based’ and less prescriptive about how and when work is delivered
• Affordable levels of service, with appropriate quality but no reward for over-delivery
• Incentives for innovation and efficiency, including the opportunity for contract extensions
• Simplified pricing mechanisms with a ‘year on year’ cost reduction mechanism
• A higher cost threshold for works to allow more procurement through the ASC rather than by separate tender
• Managing technology maintenance and improvement works through the main contract for more efficient and joined up delivery.
David Gingell, divisional director for the Agency’s East region, added: “I am keen to work with Amey to deliver the best service we can for the region.
“More than 90% of the Agency’s expenditure is delivered through contractors and that is why we need to work with an efficient, effective and professional supply chain to drive down costs and deliver the highest quality service. I am confident that this new contract will do just that.”
Nationally, ASCs are replacing the existing arrangements, known as Managing Agent Contractor (MAC) contracts, and will form the basis of the delivery of maintenance and improvement services for most parts of England’s motorway and trunk road network.