12 Nov 2018

DIO sets out vision to diversify supply base with release of procurement plan

The Defence Infrastructure Organisation (DIO) has released its procurement plan outlining its five-year strategy on major investment on construction and infrastructure.

The publication of the strategy follows the launch of DIO’s Commercial Strategy earlier this year, which outlined vision for future ways of working with suppliers in the soft and hard facilities management, construction and property advisory sectors.

This includes work to construct new buildings, such as housing and accommodation, the refurbishment of current facilities; as well as services such as catering, waste management and cleaning.

Also contained within the plan, is DIO’s ambition to expand its supply base, which will include creating more opportunities for more SMEs.

Currently, around 75% of spending on maintenance at defence sites goes directly or indirectly to SMEs, and further diversifying the supply base will help build resilience into projects and provide more opportunities for smaller companies to work on key defence projects.

By listing all the major projects and contracts, the procurement plan will make it easier for existing and potential suppliers to plan ahead, by offering advice on bidding for this work and greater transparency on working with the MOD. These measures will help in particular small businesses, who don’t always have the skills and prior experience of working with the MOD in such areas.

Opportunities outlined in the Procurement Plan include the £4billion Defence Estate Optimisation Programme, the Future Defence Infrastructure Services contracts – which will provide facilities management across the UK’s military bases- and the £1.3bn Clyde Infrastructure Programme.

The plan also details several prominent works that demonstrate DIO’s key role in supporting defence throughout the UK. These include essential maintenance work worth £568 million to support nuclear infrastructure capability at HMNB Clyde, as well as a £58m investment in a modern submarine training facility at the base.

Alongside this, there are plans for an £8m investment in Bovington Camp to support the AJAX armoured vehicles which will enter service in 2020.

Jacqui Rock, DIO Commerical Director, said: “DIO is moving from being a landlord to becoming a commissioning agency, and enabling our suppliers to meet their needs will be essential.  We recognise the need to do things differently to better meet the needs of our customers and to attract new customers and suppliers. Both the Commercial Strategy and the Procurement Plan demonstrate our commitment to this new way of working.”

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