MOD unveils new construction contracts for southern England

The Defence Infrastructure Organisation (DIO) has unveiled two multi-million pound regional capital works framework contracts for construction projects on the Defence estate in both the South West and South East of England.

Industry is now invited to participate in the procurement process for these new commercial arrangements. Each contract covers projects with an individual value of up to £12 million.

The contracts will cover works, such as the provision of offices, messes, accommodation, garages, workshops, hangars, medical, sports and teaching facilities, armouries and guardrooms.  

Both have been developed under DIO’s Next Generation Estate Contracts (NGEC) programme. The South West Regional Capital Works Framework contract is estimated to be valued up to £700 million and the South East Regional Capital Works Framework contract is valued up to £400 million - both over a potential 7 year period.

Matt Foley, Head of NGEC, said:

“DIO’s priority is to support our Armed Forces by providing the places they need to live, work, train and deploy on operations. Capital Works Framework contracts offer a flexible commercial structure that allows the DIO to adapt to the ever changing requirements of the Defence frontline.

“In order to meet the high standard expected across the Defence estate and deliver value for money, we encourage a cross-section of companies, from multinationals to Small and Medium-sized Enterprises to participate in the procurement process.

“This will help us to ensure that we can identify the best, most experienced range of contractors and subcontractors as part of this competitive process.”

DIO sought initial expressions of interest in these particular contracts in 2011, along with another four UK Regional Frameworks. It was subsequently decided to await further detail on military rebasing plans emerging from the Strategic Defence and Security Review (SDSR) before proceeding further with procurement, to ensure adequate future demand for construction projects.

The Regional Capital Works Frameworks are designed to demonstrate ever improving value for money in MOD construction projects, and offer an opportunity for a greater proportion of Small and Medium-sized Enterprises (SMEs) to be involved.

Each of the South East and South West Regional Capital Works Framework contracts will include a pool of up to five pre-approved principle contractors who will participate in ‘mini-competitions’ for individual contracts allowing DIO to identify the most cost-effective provider of design and build projects.

Tender adverts will be published today in the Official Journal of the European Union (OJEU) along with on-line links to the Pre Qualification Questionnaire (PQQ) which must be returned by no later than 30 April 2014.

It is expected that the framework contracts will be awarded by summer 2015 with each of the framework agreements running for four years, with an option to extend up to a further three years.

John Jones, Frameworks projects manager, said:

“DIO is pleased to welcome Interest from both large and small businesses in these two Regional Capital Works Framework contracts in the south of England.

“Bidders will be required to deliver a complex and diverse range of facilities for the Defence estate. In addition, the Framework contracts will also be used to procure a significant proportion of work in support of military rebasing up to 2020.”

The framework contracts will operate in parallel to the National Capital Works Framework contract for higher value and more complex UKprojects worth up to £50 million.

Potential framework contractors will need to show a minimum turnover of £18 million along with recent experience of project-managing construction projects worth over £5 million. Sub-contractors who do not meet these thresholds may have an opportunity to support the potential framework contractors.

DIO will host an industry day at theTidworthGarrisonTheatrein early April 2014 for potential framework contractors and sub contractors in order to provide an overview of UK Defence, the NGEC programme and the scope of both the South East and South West frameworks. The event will also provide opportunities for sub-contractor and supplier networking. Instructions for attending this event can be found via a separate link from the OJEU advert.

Ends

Further information:

Press enquiries: Tony Moran (DIO Senior Communications Officer) 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), which is part of the MOD, 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. 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.

3. 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, 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.

4. The SW and SE Regional Capital Works Framework contracts cover a diverse range of military airfields, naval bases and military establishments across the south of England from Cornwall to Kent and as far north as Gloucestershire and Oxfordshire, including the London area.

5. The Government Construction Strategy was published in May 2011 which sets out a framework for a range of work streams, all of which have the aim of reducing the cost of government construction projects by 15-20% by the end of the current Parliament.

6. The Framework contracts will introduce the use of Building Information Modelling (BIM) and the nec3 form of contract as cited in the Government Construction Strategy. Capital Works Frameworks will also  champion prompt payment principles through the use of project bank  accounts and other initiatives, as well as incorporate effective performance management, continuous improvement and benchmarking arrangements.

7. Building Information Modelling (BIM) is a global digital construction technology, which provides a shared source of information about individual facilities to assist the decision making process for the design, construction and      management of buildings from planning stage, and throughout their life cycle. 

8.    NEC3 contracts will be introduced to the DIO for the first time through NGEC’s Frameworks programme. In addition to their use on construction projects they will also be used in due course on contracts across housing, training estate, and hard FM. 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.

9. Please credit photograph as follows: Typhoon maintenance facility. Crown Copyright/MOD2014

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