25 Jul 2014

DIO award £1bn new infrastructure contracts

Summary: The Defence Infrastructure Organisation (DIO) has announced that it has awarded contracts valued at £958m for the Next Generation Estate Contracts (NGEC) Regional Prime Contracts Central and South West and South East England.

The contracts break down as follows:

  • the Regional Prime Central contract worth £435m
  • Regional Prime South West contracts valued at £265m
  • Regional Prime South East contracts valued at £258m

These three contracts form the final part of the DIO Next Generation Estate Contracts (NGEC) programme to maintain and upgrade defence infrastructure and have the potential to be extended for a further five years.

The joint venture will provide a wide range of hard facilities and asset management services at more than 150 establishments containing more than 14,000 assets at sites including RAF Cranwell, Catterick Garrison, RAF Valley and MOD Stafford, together with the option to undertake capital works projects valued up to £3.93m.

The contracts provide planned and reactive maintenance including grounds maintenance, a 24/7 helpdesk for estate-users and have capability to deliver additional professional services, low value capital works and capital projects up to a value of £3.93m.

The award of the latest three contracts represents another milestone in the NGEC programme following the £1.1bn award of the National Housing Prime National Training Estate Prime and Scotland and Northern Ireland Prime Contracts this year.

Acting Chief Executive DIO, Mark Hutchinson said: “I am delighted that DIO has reached this important milestone in transforming the way it works. These new contracts will help DIO provide modern and effective infrastructure services to support Defence capabilities and individual Service personnel in a timely and cost-effective way.”

Carillion Chief Executive Richard Howson said: “DIO set industry the challenge of providing added value to the military estate and by awarding us these five contracts providing UK wide coverage the offers we submitted have been recognised as generating demonstrable benefits in this regard, including the use of market leading customer feedback systems.”