DIO awards estates contracts valued at £1.1bn

The Defence Infrastructure Organisation (DIO) has announced that it has awarded contracts valued at £1.1 billion for the Next Generation Estate Contracts (NGEC) National Housing Prime, National Training Estate Prime and Scotland and Northern Ireland Prime Contracts.

DIO has awarded contracts to the following companies:

• National Housing Prime contract (NHP) valued at £626m to CarillionAmey (Housing Prime) Ltd
• National Training Estate Prime contract (NTEP) valued at £322m to Landmarc Support Services Ltd; and
• Scotlandand Northern Ireland Prime contract valued at £152m to CarillionAmey Ltd.

The three contracts have been awarded on a five-year year basis with the option to extend up to an additional five years.

The contracts provide planned and reactive maintenance including grounds maintenance 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 award of the three contracts represents a major milestone in the NGEC programme and this will be followed shortly by the contract award of three further Regional Prime contracts for the Central, South East and South West of England, which are due to be awarded in June 2014.

Matt Foley, DIO Head of Future Procurement said:

“Over the last 10 years, DIO has rationalised our contracting arrangements from over 250 to six manageable NGEC Prime contracts in 2014.

“These are designed to deliver value for money for Defence and the tax payer through a coherent set of firm priced contracts, which further improves financial stability. I look forward to working closely with our new Prime contractors and I am confident that the companies selected will meet the high standards required on the Defence estate.”

Major General Mark Armstrong, DIO Director Service Delivery 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 have not only been designed to provide operational capability at all times, but are flexible enough to adapt to future requirements of the defence frontline; allowing for service requirements to be changed in a timely and cost effective way.”

In line with MOD’s continuing commitment to providing decent accommodation for military personnel, the NHP represents a national contract covering more than 49,000 military homes across the UK. The new contract replaces a number of different, existing contractual arrangements to support Service Families Accommodation (SFA).

This contract has greater scope than previous maintenance contracts, as it provides additional services for managing move-in, move-out services, housing allocations and the installation of furniture and fittings.

There has been a great deal of progress made in the delivery of accommodation services to Service personnel and their families, including: improving the standard of accommodation; the introduction of an online application system; patch management; and using survey data to improve our customer service. DIO’s aim is that the NHP will build on these successes over the lifetime of the new NHP contract.

Britain’s Armed Forces depend upon the training estate to prepare for operations. The NTEP contract will deliver a range of technical support, maintenance and repair service and soft facilities management, including catering and a training range booking service. The NTEP contract will manage over 190,000 hectares ofUKtraining estate, used by up to 30,000 Defence personnel each day.

TheScotlandand Northern Ireland Prime Contract will deliver repairs and maintenance services to the built estate, as well as security maintenance services across 30 sites in both countries. It replaces the current Regional Prime Contact forScotlandand two contracts delivering routine maintenance work in Northern Ireland.

Both the NTEP andScotlandand Northern Ireland Primes are due to be in service by November 2014. The NHP will be implemented through a phased mobilisation programme by December 2014.  

Ends

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) across 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) National Housing Prime: 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.

6) National Training Estate Prime: 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, including air weapons ranges, which covers key sites such as, Salisbury Plain training area, Catterick training area, Dartmoor, Sennybridge, and Otterburn. The contract now includes the Air Weapons (and Joint Fires) Ranges, Lulworth and Bovington tank Ranges, Ballykinler and Magilligan training camps in Northern Ireland, RAF Spadeadam.

7) Regional Prime Scotland & Northern Ireland: The contract will deliver maintenance and repairs to the built estate. Sites covered by the contract include, RAF Lossiemouth, RAF Leuchars, Kinloss Barracks, HMS Caledonia and Kentigern House in Scotland, and Aldergrove Airfield, Thiepval Barracks and Kinnegar Logistics Base in Northern Ireland.

8) Construction projects valued at more than £3.93 million will be procured through either the Regional or National Capital Works Frameworks. Regional Capital Works Framework 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.

9) 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.

10) 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 for Scotland 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.

11) 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.

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