Procurement of facilities management services designated for office buildings of airline corporate organisations in Asia

Abstract

Purpose The purpose of this paper is to enhance decision-making process for the procurement of facilities management (FM) services within aviation corporate organisation, where the FM services functions to support the business operation. It builds on considering the fundamental elements comprising the FM procurement process from the aviation perspective. Design/methodology/approach The paper investigates the characteristics of the different types of sourcing approaches and the underpinning factors affecting its selection for the procurement of FM services within the aviation industry. The decision-making framework for the procurement of FM services is developed based on the qualitative case study by interview and focus group discussion with the custodian department that is directly involved in the procurement of FM services. Findings The degree of outsourcing is increasing due to corporate organisation’s persona. Procurement of FM services is a complex process required detailed review, efforts and time in choosing the right sourcing approach. Off the shelf guidelines for the procurement of FM services suits property professional which directly involved with the procurement of FM services. However, decision-making process for the procurement of FM services specifically for aeronautical and non-aeronautical corporate organisation are rarely found. The case study findings signify that the respondents are familiar with the in-sourcing, outsourcing and right sourcing approaches. The underpinning factors affecting sourcing approaches were categorised according to the main reasons for the procurement of FM services, considerable factors during the procurement stage and value-adding criteria. The use of strategic management tools is not widely imposed, and intelligent client guideline is not available. Hence, the decision-making framework has been developed to fill the gap in this study. Research limitations/implications The research is based on a study of aviation or airline corporate organisation, which limits the possibility of holistic view to the FM industry as a whole but highlights the research gap of FM procurement which is scarce within the case study of airline companies. The focus area is also bounded within the procurement of FM services designated for the office buildings. Originality/value The paper provides initial guideline for the airline company in sourcing the procurement of FM services that were developed based on established guidelines from accrediting bodies and scholars, as well as from the sampling feedback analysis. It is also among the firsts that examine the procurement of FM services in the context of aviation or airline industry. The outcome of this paper is a decision-making framework for the procurement of FM services that is specially designed for the airlines corporate organisations, which fills the gap that exists in the industry.