13 Mar 2014

MOD selects outsourcing giant for £400m military estate contract

Summary: The Ministry of Defence has selected outsourcing firm Capita as the preferred bidder for a £400m contract to manage the UK government’s military estate.

MOD military estate overhaul

The massive contract includes work to overhaul the £21bn Defence Infrastructure Organisation (DIO), which oversees the MOD’s military estate and accounts for 1% of the UK’s land mass.

The contract will be awarded in spring 2014 and will cover ten years. It aims to help transform the facilities and services that allow armed forces to live, work, train and deploy on operations. It also has the potential to deliver substantial savings for the taxpayer, which could reach over £300 million a year during the period of the contract.

DIO is responsible for the management of around 4000 separate sites worldwide over 230,000 hectares, including military barracks, land, air and naval bases, and military training grounds.

Defence contract opportunity

The key areas of the defence contract opportunity include identifying savings and commercial opportunities and improving access to knowledge, skills and private funding for key improvements.

Andy Parker, Capita Chief Executive, said: Capita brings a unique breadth of expertise to the MOD from business process transformation through to multi-disciplinary property and infrastructure services.

“The partnership will help to unlock the knowledge, skills and resources that already exist within the DIO, while adding capability to tackle the significant cost-saving targets currently facing the MOD.”