HP Announces Worldwide Facilities, Security Agreements

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HP Announces Worldwide Facilities, Security Agreements

11 April 2008

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HP today announced a major consolidation of facilities and security vendors for most of its worldwide facilities, a move expected to save tens of millions of dollars over the life of the new contracts.

HP awarded a contract for integrated facilities management in its Europe, Middle East, Africa (EMEA) and Asia Pacific Japan (APJ) regions to ISS (www.issworld.com) of Copenhagen, Denmark. The EMEA contract is subject to the completion of country legal requirements.

The company also announced it has extended a similar agreement with Johnson Controls Inc. (www.johnsoncontrols.com) of Milwaukee, Wis., for HP locations in Latin America. Johnson Controls currently manages HP facilities in the United States and Canada.

The contracts integrate technical, custodial, food and general maintenance services, facilities moves and alterations, non-industrial waste management and environmental health and safety operations. Many of the services will be sub-contracted.

HP also announced it has awarded a contract for site security, reception and switchboard services for its facilities in EMEA, APJ and Latin America to G4S (www.g4s.com) of West Sussex, England. China, France, Germany and Venezuela are excluded from the agreements. The EMEA contract is subject to country legal requirements. Security services for HP facilities in the United States and Canada were awarded last year to Securitas (www.securitas.com) of Stockholm, Sweden.

Details of the agreements were not disclosed.

HP has 172,000 employees occupying 62 million square feet of office, manufacturing, development and laboratory space around the world.

The contracts are part of a strategy driven by HP’s Corporate Administration and Shared Services organization to provide consistency and operating excellence at its global facilities through vendor consolidation. The agreements involved HP’s global procurement, real estate and workplace services, and global security functions and are expected to generate savings from process improvements and the need to deal with fewer suppliers.

“These new agreements will reduce the company’s number of suppliers worldwide from hundreds down to just a few high-capability global providers and service suppliers,” said Jon Flaxman, executive vice president and chief administrative officer, HP. “We believe this will help improve shareholder value and create significant savings that can be reinvested in growth opportunities for HP.”