AECOM Signs Infrastructure Deal with UK Government

AECOM has secured a position on the Government Commercial Agency Construction Professional Services 2 Framework for the second consecutive term. The global infrastructure company now holds access to nine lots on the four-year agreement, up from five in 2021.

The framework allows central government departments and public sector bodies to procure technical advisory, design and project management services for building projects. According to the GCA, CPS2 has a total value of US$4.7bn.

Expanding market access routes

AECOM operates across water, environment, energy, transportation and buildings sectors. The company provides advisory, planning, design and engineering services, as well as programme and construction management.

The CPS2 framework functions as the main procurement route for UK public sector construction services. Bodies can access standalone projects, multi-year capital programmes and services across health, housing, energy and education sectors through the agreement.

The GCA establishes and maintains commercial agreements for public sector organisations. It aims to mitigate supply chain risk and stimulate economic growth across the UK public sector.

The framework provides access to engineering advisory services for projects of all scales, including flood risk and asset management, international projects and defence projects. The agreement runs for four years with no extension option.

Strategic positioning for growth

"As one of the largest procurement frameworks in the history of UK public sector consultancy, the scope and scale of CPS2 provides an important route to market for our multidisciplinary offerings in key sectors including energy, defence, social infrastructure, transportation and environment," says Lara Poloni, AECOM's President.

"We are delighted to not only secure our place on CPS2 but also increase our routes to market through our placement on the newly established lots for nuclear energy and flood risk & asset management. Our expanding role is indicative of both the strength of our expertise across our end markets and the growing value our clients see in our professional services offerings."

The company's expanded presence on the framework could signal increased revenue opportunities across multiple public sector channels. AECOM now has access to newly established lots that were not available in the previous term.

The nuclear energy and flood risk lots represent additional market segments for the company's service portfolio. These additions could provide access to government spending in infrastructure areas that face capacity constraints.

Nine lot allocation details

AECOM secured positions on nine lots in 2024 compared to five in 2021. The allocations include:

• General infrastructure - construction professional services supporting various projects.
• Project management - services across multidisciplinary teams, budgets, risk and compliance.
• Defence - lifecycle support with security-cleared staff and policies for security requirements.
• Defence enhanced - lifecycle services with security-cleared staff and secure protocols.
• International - worldwide project lifecycle support for Ministry of Defence and Foreign, Commonwealth and Development Office clients.
• Nuclear energy - discrete delivery stages for nuclear environment projects.
• Flood risk & asset management a, b and c - industry expert services across project lifecycle.

"Our appointment to CPS2 is a significant step in deepening our relationship as a trusted partner with organisations across the UK public sector, including central government departments, local authorities and the Environment Agency," says Richard Whitehead, Chief Executive of AECOM's Europe & India region.

"CPS2 provides us with the opportunity to continue supporting the UK public sector in solving its most pressing challenges across infrastructure and the built environment, while also embedding wider social value into projects and programmes and delivering significant value for UK taxpayers."

The 80% increase in lot allocations from the previous term could indicate stronger competitive positioning. AECOM's repeat appointment suggests the company maintained performance standards from the 2021 framework term.

The international lot provides access to overseas projects commissioned by UK government departments. The three flood risk and asset management lots suggest tiered service levels or regional divisions within that category.

AECOM's expanded framework position provides multiple entry points for contract awards over the four-year term. The company now has access to public sector spending channels across nine distinct service categories.