The Leading News & Information Service For The Facilities, Workplace & Built Environment Community

Mitie’s CMA Investigation – What’s the Latest?

Mitie’s CMA Investigation – What’s the Latest?
30 March 2022

The Guardian reported that the UK competition regulator raided Mitie’s offices after an accusation of breaking competition law, but what do we know so far about the CMA investigation?


The CMA Investigation into Mitie Group PLC, Mitie Care and Custody Ltd and PAE Incorporated


In March 2022, the Competition and Markets Authority launched an investigation regarding UK Home Office contracts for Heathrow and Derwentside Immigration Removal Centres in the UK.

The investigation relates to suspicion of anti-competitive conduct in procurement processes, which may infringe Chapter I of the Competition Act 1998 (CA98).

The relationship in question relates to Mitie Group, Mitie Care and Custody Ltd and PAE Incorporated.

The initial investigation, which will be conducted between March and September 2022 will include the issuance of information requests and a review of information gathered.


Who is PAE Incorporated?


Pacific Architects and Engineers (PAE Incorporated) is an American-based firm headquartered in Virginia. The company is described as a “major service supplier” to American government services such as the U.S. Department of State and the Central Intelligence Agency.

PAE Incorporated was publicly traded on the NASDAQ in 2020, but after merging with Amentum Government Services Holdings LLC,  PAE common stock and warrants ceased trading on the Nasdaq stock exchange. 


What is the Relationship Between PAE Incorporated and Mitie Group?


PAE Incorporated and Mitie own a joint venture called Landmarc, which manages facilities for the Ministry of Defence.

Therefore, the breach of competition law relates to the manner in which PAE Incorporated and Mitie Group competed for the Heathrow and Derwentside home office contracts.


How Has Mitie Responded?


Mitie followed the news with an RNS announcement (RNS Number: 6657D) stating that the company “strongly condemns anti-competitive practices and is co-operating fully with the CMA and the investigation.”

The announcement also states that Mitie is confident that it has “no case to answer” and will be fully exonerated.

Other details in the announcement included information that Mitie withdrew from the Derwentside IRC tender process, without submitting a bid, due to the Home Office's 'lotting' conditions, which would have prevented a single bidder from winning both contracts. 

Mitie confirmed that it remains engaged in the Heathrow IRC tender process, through Mitie Care and Custody Limited.


What Does The Guardian Article Claim?


The Guardian claims that CMA investigators “raided” Mitie’s HQ at The Shard and that senior staff emails are being examined.

The Guardian’s source claims that documents were seized and that the CMA has “not so far made a request to interview the Mitie chief executive”, Phil Bentley.

Picture: a photograph of the London skyline, showing The Shard, where Mitie's HQ is based image Credit: Pexels

Article written by Ella Tansley | Published 30 March 2022


Related Articles

Mitie Completes its Acquisition of Interserve

Today marks Mitie’s acquisition of Interserve's Facility Management business. The Competition and Markets Authority cleared the deal to proceed in...

 Read Full Article
CMA Launches Investigation Into Interserve and Mitie Deal

The Competition and Markets Authority is investigating whether the deal between Interserve Support Services and Mitie might reduce competition in the FM sector. The...

 Read Full Article
10 Construction Firms Involved in Contract Bid Rigging

The Competition and Markets Authority has provisionally found that ten construction companies have been involved in “illegal cartel agreements” when...

 Read Full Article
FM Contract for Armed Forces in Gibraltar Awarded to Mitie

The first of a new suite of contracts to provide essential services for the UK Armed Forces on overseas MOD bases has been awarded to Mitie. The £155 million...

 Read Full Article
Mitie Acquires P2ML

Mitie has expanded its telecoms offering with the acquisition of P2ML. P2ML is a specialist telecoms tower design house, which will further expand Mitie’s...

 Read Full Article
Mitie Passes £1m in Apprenticeship Levy Gifting

Mitie has passed the £1 million milestone for its Apprenticeship Levy gifting, committing to support a range of SMEs across England since January 2021. Through...

 Read Full Article
BCC to Outline Proposals for New Cleaning Sector Apprenticeship

Cleaning and hygiene sector employers, training operatives, providers and assessment organisations are being urgently encouraged to have their say on proposals for an...

 Read Full Article
Mitie Hits EV Target Ahead of Schedule

Mitie, the UK’s leading facilities management company, has accelerated past its target to convert 30 per cent of its fleet to zero-emission electric vehicles...

 Read Full Article
Mitie Wins £92.5m John Radcliffe Hospital Contract

Mitie has been awarded a new contract to provide cleaning, portering services, and catering for patients and staff at the John Radcliffe Hospital in Oxford. Worth...

 Read Full Article
Mitie Acquires Rock Power Connections to Boost EV Offering

Mitie has acquired Rock Power Connections Limited, an independent connection provider, to add to its technical services division. Rock Power Connections specialises in...

 Read Full Article