22 Mar 2013

DIO reopens Scottish construction projects

The Defence Infrastructure Organisation (DIO) has announced that it is reopening industry competition to deliver construction projects valued up to £12m for the Scottish military estate.

Developed under the DIO Next Generation Estate Contracts (NGEC) programme, the Regional Capital Works Framework Scotland has an estimated value of between £100m and £250m and is designed to generate value for money. It will include up to five framework contractors, with the DIO awarding projects individually by running ‘mini-competitions’ to identify the most cost-effective provider.

Initial expressions of interest were sought in 2011, along with another five UK regional frameworks. However with the military rebasing plans emerging from the Strategic Defence and Security Review (SDSR) arising, further procurement was halted to ensure adequate future demand for construction projects.

The framework is expected to run for an initial four-year period, with the potential to extend for up to three years, and be awarded by mid-2014. It will operate in parallel to the National Capital Works Framework for higher value and more complex projects worth up to £50m.

Potential framework contractors will need to show a minimum turnover of £18m and experience of project-managing construction projects worth over £5m in recent years, reflecting the potential size of project requirements.
Steve Rice, Head of the NGEC programme, said: “In these financially challenging times we believe this framework model will maximise value for every pound spent on construction, while ensuring that design and build opportunities remain open for a wider range of national and local businesses.”

Jon Wooden, NGEC Capital Works Frameworks project manager, said: “We are keen that smaller and local enterprises with innovative solutions get involved in networking at our industry day.”

A contract notice has been issued to the OJEU (Official Journal of the European Union) Tender Electronic Daily (TED) and the Defence Contracts Online (DCO) websites.

DIO will also host an industry day at Redford Barracks, Edinburgh, in April for both potential framework contractors and supply chain businesses to provide an overview of UK Defence, the NGEC programme and the scope of the Scotland framework.