MOD gives blueprint to potential infrastructure partners

The Defence Infrastructure Organisation (DIO), the Ministry Of Defence’s (MOD) property and services provider, has issued the document which allows the three short-listed teams to prepare detailed bids to potentially become its Strategic Business Partner (SBP).

DIO’s Invitation to Negotiate (ITN) asks each team to further prove it can provide the MOD with a proposal to bring the right skills and expertise, before the organisation makes a final decision regarding its preferred option next summer. 

The organisation, which manages the delivery of infrastructure projects and services for the UK Armed Forces and its civilian support staff, will introduce new ways of working from Spring 2013. However, procuring a SBP could realise further savings to benefit Defence as a whole. 

Andrew Manley, Chief Executive, DIO, said:  “The DIO’s principle objective is to support our military personnel in its Standing Commitments and in preparing for operations. We do this by providing and maintaining the places where they live, work and train. In addition DIO is central to supporting the Government’s wider objectives in construction, property management and the delivery of supporting the services.

“Changing the way we deliver infrastructure services offers a real opportunity to build a leading-edge infrastructure delivery organisation that will serve the needs of our Armed Forces long into the future 

“We are striving to create a high-performing and innovative enterprise. Our search for a Strategic Business Partner is expected to extend our capability still by allowing DIO further access to private sector skills and innovation.”

 DIO has been working to ensure that the Invitation to Negotiate (ITN) provides a robust platform to effectively explore the use of private sector expertise. However, a contract will only be awarded if it can be found to provide value for money to the MOD and the taxpayer. 

Following a robust procurement exercise, launched in May 2012, three teams were selected to participate in the next stage of the competition. They consist of:

• Telereal Trillium / KPMG / Mace;
• Serco / DTZ / Bechtel;
• Capita / URS / PA Consulting

Ends

Further information

Press enquiries to: Tony Moran, DIO Press Office: 0121 311 3879 or tony.moran572@mod.uk

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

Note for 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 is one of the largest landholders in the country managing over 227,000 hectares (approximately 1% of the UK) also around 166,000 buildings. DIO is responsible for the management and delivery of the MOD’s infrastructure both in the UK and abroad. Since its formation in April 2011, following the SDSR, and in line with the changes recommended in Lord Levene’s Defence Reform Report, DIO has embarked on a transformation journey that will run for a number of years. 

4. The Defence Infrastructure Transformation Programme (DITP) seeks to determine both the future operating model and the most appropriate corporate structure for DIO. It is a key pillar of the Transforming Defence agenda, which will deliver the Future Force 2020 structure set out in the SDSR, supported by a smaller, capable and flexible Department, within the resources available for Defence. DIO sought industry views and feedback on potential future business models in a successful ‘soft market testing’ exercise conducted earlier this year.

5. Through the procurement process, DIO is testing whether an SBP could help it in:

Managing DIO’s operations and staff, initially as part of DIO’s existing organisation. It is envisaged that this will include reviewing the organisational structure presently being put in place by DIO to advise on what further efficiencies can be driven from the business, what additional skills are required to deliver DIO’s strategic objectives and the options for providing those skills;

Developing and implementing a strategic asset management plan to increase the utilisation of the estate, which will lead to rationalisation and commercialisation opportunities;

Further developing and implementing the transformation of DIO; Managing existing and new suppliers and other third party arrangements; and

Developing contracting strategies to drive further efficiencies and deliver better value for money for the MOD across its estate.

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