MOD makes further progress on Strategic Business Partner contract

The Ministry of Defence (MOD) has today taken a further step towards bringing in a private-sector partner to help improve the running of its 230,000 hectare Defence estate.

The MOD has confirmed it intends to sign a Strategic Business Partner (SBP) contract for the Defence Infrastructure Organisation (DIO) with the company Capita, working in conjunction with URS and PA Consulting.

There will now be 10-day commercial standstill period before the contract is officially signed. The 10-year contract, worth around £400 million, will help transform the facilities and services that allow our 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 10 year contract.

The key areas where a Strategic Business Partner will provide the greatest benefit and additional capability include:

• Developing a strategic plan to help identify potential savings and commercial opportunities;
• Improving access to market-competitive knowledge and skills;
• Better access to private funding for key efficiency improvements; and
• Improving how change is managed across the Defence Infrastructure Organisation.

Further information:

For all further media queries please contact Robert Mead in the MOD Press Office on 020 7218 7924 or Tony Moran in the Defence Infrastructure Organisation Press Office on 0121 311 3879.

DIO website: www.gov.uk/dio

Twitter: @mod_dio

Read DIO’s blog: https://insidedio.blog.gov.uk/

Notes to Editors

1. In May 2012 we announced that we were looking for a Strategic Business Partner to help unlock expertise and skills not currently within the Defence Infrastructure Organisation. Tenders for the contract were received in June 2013 and it is expected a contract will formally be awarded shortly.

2. The commercial standstill period provides an opportunity for unsuccessful bidding teams to challenge their feedback.

3. Once the contract has been awarded, the Defence Infrastructure Organisation will work with the Strategic Business Partner to prepare for the contract becoming fully operational in summer 2014.

4. The Defence Infrastructure Organisation will continue to be 100 per cent owned by the Defence Secretary and the MOD will oversee the activities and performance of the Strategic Business Partner.

5. The Defence Infrastructure Organisation is part of the MOD. It is responsible for managing and maintaining Defence land and properties. It also provides related support services, to meet the current and future needs of the MOD and personnel at home and abroad, and to support current operations. This includes accommodation and training facilities.

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