- 3 October 2016
- Transport / Logistics Services
National postal operator Royal Mail has won a new, three year contract to handle the postal services for 27 of the 33 London Boroughs. This continues it last contract that lasted three years to date.
Royal Mail has released a statement that said that the contract has been awarded after a competitive tendering process by the London Boroughs Postal Board and it will handle 27 of the 33 London Boroughs’ mail services.
The postal services work involves the collection, delivery as well as sorting of all business mail, to include council tax communications, as well as parcels, bulk mail postings and special delivery items.
Terry Brewer, Divisional Director Commercial, Contracts and Procurement from London Borough of Harrow and Chair of the London Postal Services Board, said: “The participating London Boroughs are delighted with the results of the tender process which has seen Royal Mail being awarded the contract again. We look forward to working with Royal Mail to achieve further savings and efficiencies and receive a quality service.”
Due to the climate of cost savings, postal services are tendered out as with many other services to the best bidder by nearly all levels of government in the UK. UK Mail and others have won similar contracts from other city, county and unitary councils, and this is by no means a guaranteed income for Royal Mail as a result. The frequency of the tendering process is another uncertainty in the mix – companies have to bid regularly to keep their gold plated contracts…
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