DIO awards estates contracts valued at £958 million

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

DIO has awarded five-year contracts to CarillionAmey Ltd:

  • Regional Prime Central valued at £435 million
  • Regional Prime South West valued at £265 million
  • Regional Prime South East valued at £258 million

The three contracts have the option to be extended up to an additional five years.

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 £3.93 million. The contracts ensure sites continue to be kept safe, legal and operational at all times.

The new South West and South East Regional Prime contracts replace the current Regional Prime contracts that were let in 2003 and 2005. The new Central Regional Prime contract replaces two existing Regional Prime contracts that cover Central England andEastern England.

The award of the latest three contracts represents another major milestone in the NGEC programme, following the £1.1 billion award of the National Housing Prime National Training Estate Prime and Scotland and Northern Ireland Prime Contracts on 12 May 14. These first three contracts were also awarded for five years, with the option to be extended up to an additional five years.

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.”

Over the last 10 years, DIO has rationalised the number of contracts it manages to deliver this service from over 250 down to six NGEC Prime contracts now. NGEC Prime contracts provide a common framework for contract management across the whole UK Defence estate. They are designed to deliver value for money for Defence and the taxpayer through a coherent set of contracts where prices for Core Services have been agreed in advance with the contractor, further improving financial certainty.

Matt Foley, DIO Head of Future Procurement said:

“DIO’s priority is to support our Armed Forces by providing the places they need to live, work, train and deploy on operations. Prime contracts provide a comprehensive contract framework and have been developed following an in-depth review of the Defence estate and requirements of our estate users.

“They have also been designed to not only provide operational capability at all times and are flexible enough to adapt to the future requirements of the Defence frontline; allowing for service requirements to be changed in a timely and cost effective way.

“Our new Prime contractors have faced a rigorous procurement and evaluation process. I am confident that the companies selected will meet the high standards required on the Defence estate and I look forward to working closely with them.”

All three Regional Primes are due to be in service by February 2015.


Further information:

Press enquiries: Tony Moran, DIO External Communications Manager,on 0121 311 3879 or email tony.moran572@mod.uk

DIO: https://www.gov.uk/government/organisations/defence-infrastructure-organisation

NGEC programme: https://www.gov.uk/next-generation-estate-contracts     

NGEC Capital Works Frameworks: https://www.gov.uk/next-generation-estate-contracts#regional-and-national-capital-works-frameworks-procurement     

Notes to Editors     

1) The Defence Infrastructure Organisation (DIO) plays a vital role in supporting our Armed Forces by building, maintaining and servicing what the men and women who serve our country need to live, work, train and deploy on operations.

2) DIO is part of the Ministry of Defence (MOD). It is responsible for managing and maintaining land and properties, as well as providing related support services, to meet the current and future needs of the MOD and personnel at home and abroad, and to support current operations.

3) Our work includes supporting operational units by providing and improving single living and service family accommodation; training areas and historic military sites. DIO actively manages these to ensure the needs of Defence are met, value for money is achieved, and its heritage is protected, and to achieve its environmental goals.

4) The Next Generation Estate Contracts (NGEC) programme is developing a new suite of contracts for the UK Defence Estate, comprising four Regional Prime contracts for delivering maintenance and repair services (hard FM), the National Housing Prime, the National Training Estate Prime, the US Forces Estate Prime, and one national and six regional Capital Works Frameworks for construction projects.

5) Regional Prime Central: The contract will deliver maintenance and repairs to the built estate across the north of England, Wales, the Midlands and East Anglia. More than 150 defence establishments are covered by the contract, including Catterick Garrison, Beacon Barracks, Stafford, RAF Shawbury and RAF Valley training bases, DST Leconfield, Wattisham Airfield, RAF College Cranwell, and the intelligence and security centre at Chicksands.

6) Regional Prime South East: The contract will provide maintenance and repairs to the built estate across to MOD sites across Hampshire, Berkshire, Buckinghamshire, Oxfordshire, Sussex, Surrey, Kent and Greater London. It will cover around 60 main defence establishments including RMA Sandhurst, DMRC Headley Court, HQ Land Forces Andover, Hyde Park Barracks, Woolwich Barracks, Horse Guards, RAF High Wycombe and RAF Northolt.

7) Regional Prime South West: The contract will provide maintenance and repairs to the built estate across Cornwall, Devon, Somerset, Avon, Dorset, and parts of Wiltshire, Hampshire and Gloucestershire. It will also deliver soft facilities management, such as cleaning and catering across a limited number of sites in the region. There are over 40 defence sites covered, including Royal Marine bases, RNAS Yeovilton, RNAS Culdrose, Defence Equipment and Support (DE&S) headquarters at Abbey Wood, Bristol, where around 10,000 staff are based.

8) The awarding of Regional Prime Contracts for Central, and South East and South West England signifies the conclusion of a legal challenge which has been resolved amicably.

9) In addition to RPC, Central, South West and South East, DIO awarded contracts on 12 May for two single UK-wide contacts for the National Housing Prime, National Training Estate Prime and Scotlan and Northern Ireland Prime Contracts to the following companies:  National Housing Prime contract (NHP) valued at £626m to CarillionAmey (Housing Prime) Ltd; National Training Prime contract (NTEP) valued at £322m to Landmarc Support Services Ltd and Regional Prime Scotland and Northern Ireland (RPC SC&NI) valued at £152m to CarillionAmey Ltd.  

National Housing Prime is a single UK-wide contract delivering repairs and maintenance to Service Families accommodation, including grounds maintenance in England, Wales, Scotland and Northern Ireland. The contract will also provide occupancy management activities such as housing allocations, move-in, move-out services, and the installation of furniture and fittings.

National Training Estate Prime is a single UK-wide contract delivering range technical support, hard facilities management (Hard FM), soft facilities management, and training range booking services. It includes the management of all training establishments, areas, camps and ranges and air weapons ranges.

Regional Prime Scotland & Northern Ireland will deliver maintenance and repairs to the built estate, including sites such as RAF Lossiemouth, RAF Leuchars, Kinloss Barracks and HMS Caledonia.

10) Construction projects valued up to  £3.93 million may be procured through the Regional Prime contracts. Regional Capital Works Frameworks will be used to deliver construction projects valued up to £12m, potentially including: offices, messes, accommodation blocks, garages, workshops and other technical facilities, hangars, houses, general and ammunition stores, medical facilities, sports and recreational facilities, teaching and training facilities, armouries, community facilities, and guardrooms. The National Capital Works Framework will be used to deliver higher value construction projects, more complex projects and cross-region programmes up to a value of £50 million.

11) The East Midlands and East of England contract was awarded in November 2013 and the National Framework contract awarded in December 2013. Tenders for the Capital Framework forScotland are currently under evaluation and the contract is due to be awarded in summer 2014. Regional Frameworks for the South East and South West are currently under evaluation and contracts are due to be awarded in summer 2015. It is planned that the other Regional Capital Frameworks (the North East, North West and Yorkshire and the Humber; the West Midlands and Wales) will also be used to deliver regional construction projects valued below £12m and the procurement of these frameworks is ongoing. Successful bidders will be invited to engage in “mini competitions” once project requirements have been identified as suitable for delivery through the Framework.

12) NEC3 contracts will be introduced to the DIO for each of the prime contracts across housing, the training estate, and hard FM, as well as on construction projects. NEC3 contracts facilitate the implementation of sound project management principles and practices, and have delivered major benefits across a diverse range of works and services in terms of time, cost savings and improved quality.

13) The contract values published within the press release are based on the outcome of a rigorous procurement and evaluation process. Values published prior to contract award represent estimated contract values over an initial contract period of five years, with an option to extend by up to ten years. During this process bidders had to not only demonstrate a high level technical capability, but were also evaluated on the competitiveness of their price for core service and additional and professional services. Prime contracts are designed to deliver value for money for Defence and the tax payer through a coherent set of firm priced contracts, where prices for core services have been agreed in advance with the contractor.