Defence facilities bidders set to tender for England and Wales
Private sector bidders are set to start tendering for three major MOD facilities management contracts across England and Wales worth up to £4.35bn, following a programme of visits to key Defence establishments.
The Defence Infrastructure Organisation (DIO) contracts – Regional Prime Central, Regional Prime South East, and Regional Prime South West – will each deliver maintenance and repairs to the built estate, with other services including a 24/7 helpdesk for estate-users, a regional utility management bureau, grounds maintenance, and snow and ice clearance. The contracts also include options for land management services and construction projects valued below £3.93m.
Under DIO’s Next Generation Estate Contracts (NGEC) programme, up to four bidders have now been shortlisted for each of the three contracts (see Notes to editors for further detail). The site visits programme has been aimed at raising their knowledge and familiarity with the full span of MOD facilities and the Defence personnel that use them, prior to the intensive ‘negotiated tendering’ process.
During September and early October the NGEC teams have been escorting the bidders to 28 of the 230 main establishments covered by the contracts, selected for their diversity and importance to military outputs. The bidders toured the establishments visiting key buildings and facilities along the way, ranging from office blocks and technical buildings to living accommodation and dining facilities. They also met with DIO site representatives and military site-users to discuss their individual requirements.
Gill Hodson, the senior NGEC project manager, said:
“DIO’s priority is to support our Armed Forces as they prepare for operations. These three contracts cover significant geographical regions including a variety of key Defence bases and facilities that are vital to the delivery of military capability, and the incoming prime contractor will play an important part in this. From roofing to runways, we are determined to ensure that the bidders develop a real empathy for our military customers’ requirements, which they can then build into the development of their competitive tenders.”
David McLaughlan, the NGEC senior commercial manager, said:
“Good prime contractors need healthy, robust supply chain arrangements, which is why we will be exploring bidders’ plans in this area of development during this key stage in the procurement process. I would urge smaller businesses with innovative estate solutions to make their offering known to the bidders for these contracts as early as possible.”
The bidders will shortly be issued with a formal invitation to engage in ‘competitive negotiation’ as they develop their Regional Prime tenders. They will also be invited to attend the Defence Academy at Shrivenham in early November for a conference on the service requirements, prior to submitting tenders in December 2012. It is expected that the three contracts will be awarded by early 2014 and in service by mid 2014.
To help small and medium-sized enterprises (SMEs) to engage with shortlisted bidders on potential supply chain and subcontracting opportunities, contact details for each bidder are available on the NGEC website at: http://www.mod.uk/DefenceInternet/MicroSite/DIO/OurPublications/NGEC/IndustryDaysAndPotentialBiddersDirectory.htm
Further Information:
Press enquiries to: Pragati Baddhan (DIO Communications Officer)
on 0121 311 3678 or email pragati.baddhan914@mod.uk
Defence internet – NGEC programme: http://www.mod.uk/DefenceInternet/MicroSite/DIO/WhatWeDo/NextGenerationEstateContracts.htm
NGEC Regional Prime contracts: http://www.mod.uk/DefenceInternet/MicroSite/DIO/WhatWeDo/NGEC/RegionalPrimes.htm
NGEC Potential Bidders Directory (links at bottom of page): http://www.mod.uk/DefenceInternet/MicroSite/DIO/OurPublications/NGEC/IndustryDaysAndPotentialBiddersDirectory.htm
Notes to editors
1. The Defence Infrastructure Organisation (DIO) is part of the Ministry of Defence (MOD). It is responsible for managing and maintaining land and properties to meet the current and future needs of the MOD and personnel at home and abroad, and to support current operations.
2. Our work includes providing, supporting and improving: operational units; 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, our heritage is protected, and to achieve our environmental goals.
3. DIO was formed on 1 April 2011 when the former Defence Estates (DE) organisation was brought together with other property and infrastructure functions within the department to form a single organisation. DIO manages the MOD’s property infrastructure and ensures strategic management of the Defence estate as a whole.
4. The Defence estate is valued at approximately £15.3 billion, spanning 230,000 hectares and 45,000 buildings.
5. 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 hard facilities management, one national and six regional Capital Works Frameworks for construction projects, a National Housing Prime contract, and the National Training Estate Prime contract. The contracts are estimated to be worth between £500m and £600m per annum, and more than £5 billion over 10 years, exclusive of construction projects.
6. The Regional Prime Central is valued at between £800m and £1.8 billion over a minimum of five years and a maximum of 10 years. It will replace the current Regional Prime Contract Central (Northern England, the Midlands and Wales) and Regional Prime Contract East (East Midlands), and is expected to be awarded by early 2014. Major sites include 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). The shortlisted bidders are:
Axiam Ltd – a joint venture comprising Interserve Defence Ltd and DynCorp International LCC
Babcock Support Services Ltd – a division of Babcock International Group plc)
Carillion Enterprise Ltd – a joint venture comprising: Carillion Services Ltd and Enterprise Managed Services Ltd
KBR – a proposed joint venture comprising Kellogg Brown and Root Ltd and Balfour Beatty Workplace Ltd
7. The Regional Prime South East is valued at between £500m and £1.2 billion over a minimum of five years and a maximum of 10 years. It will replace the current Regional Prime Contract South East, and is expected to be awarded by early 2014. Major sites include RMA Sandhurst, DMRC Headley Court, HQ Land Forces Andover, Hyde Park Barracks, Woolwich Barracks, Horse Guards, RAF High Wycombe and RAF Northolt. The shortlisted bidders are:
Babcock Support Services Ltd – a division of Babcock International Group plc
Carillion Enterprise Ltd – a joint venture comprising Carillion Services Ltd and Enterprise Managed Services Ltd
KBR – a proposed joint venture comprising Kellogg Brown and Root Ltd and Balfour Beatty Workplace Ltd
PriDE (SERP) Ltd – a joint venture comprising Interserve Defence Ltd and SSE Contracting Ltd
8. The Regional Prime South West is valued at between £600m and £1.35 billion over a minimum of five years and a maximum of 10 years. It will replace the current Regional Prime Contract South West, and is expected to be awarded by early 2014. Major sites include various Royal Marines bases, RNAS Yeovilton, RNAS Culdrose, Defence Equipment and Support (DE&S) headquarters. The shortlisted bidders are:
Babcock Support Services Ltd – a division of Babcock International Group plc)
Carillion Enterprise Ltd – a joint venture comprising Carillion Services Ltd and Enterprise Managed Services Ltd
Landmarc Support Services Ltd – wholly owned by Interserve plc and Computer Sciences Corporation (CSC)
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