Southern Water has awarded a contract for procurement services worth an estimated £2.5 million.

Under the contract the water company has outsourced their sourcing activity to a single service provider who will work with the internal procurement team, to deliver the sourcing activities required.

Manchester-based firm Long O Donnell Associates Ltd has been awarded the contract. One of two companies who bid for the work.

Services the supplier will be required to provide under the contract include:

• detailed scoping activity and requirement gathering,
• tender pack preparation
• contract drafting based on the business requirements, working with Southern Water legal counsel
• required negotiation activities, based on Southern Water requirements,
• tracking and reporting progress and effectiveness of sourcing resources to contract management.

The contract will last for an initial period of 12 months, at which point Southern Water will decide whether to extend the services for up to 5 years or seek to terminate at the end of the 12 month period, transitioning sourcing activity to internal teams.