Defence sites in the North, Midlands and Wales to benefit from £558m new facilities management contractTue 15th June 2021
Four new contracts worth £1.6 billion have been awarded to industry delivering crucial building maintenance and hard facilities repair services across the UK Defence estate.
Forming part of the first phase of the Future Defence Infrastructure Services (FDIS) programme, the contracts, which have been awarded by the Defence Infrastructure Organisation (DIO), cover 31,000 assets and will support facilities at more than 400 Defence sites across the UK.
VIVO has been announced as the winner of the contract that will deliver hard facilities management at Defence locations across the North, Central England and Wales. The contract is worth a total of £558m, with £516m of that providing services to England and £42m providing services to Wales. The contract will deliver services to over 100 sites in these regions.
The contract is expected to support over 1,000 jobs in these regions and will ensure that small and medium enterprises (SMEs) are supported through the supply chain.
In addition to providing core maintenance, the contract awarded today will support the delivery of up to £1.3bn of additional works. The initial contract is for seven years with the option to extend up to a further three years, depending on performance.
Minister for Defence Procurement Jeremy Quin said:
“Our people are at the heart of what we do and these contracts will deliver key services and facilities management for our Armed Forces personnel based around the country.
“Helping to modernise and transform the Defence estate, the programme will also support thousands of jobs across the UK.”
As announced by the Prime Minister last November, Defence has received an increase in funding of over £24 billion across the next four years. Further outlined in the Defence Command Paper, this investment reaffirms the MOD’s commitment to maximise the use of Defence estate and prioritise funding for critical infrastructure.
Secretary of State for Wales Simon Hart said:
“I am thrilled that these contracts, worth £42m within Wales, will help to maintain and repair Defence sites in Wales and across the country.
“As well as improving vital facilities, this contract will support Welsh jobs and businesses for at least the next seven years.”
DIO’s Chief Operating Officer David Brewer said:
“We are passionate about the work we do every day to support the Armed Forces and their families across the whole of the UK.
“The Future Defence Infrastructure Contracts for the Built Estate represent an increased investment in maintenance by the MOD and will offer improved response times and increase the amount of planned maintenance.
“I am pleased to announce the successful suppliers in the Central region. I look forward to working with these industry leading organisations to continue the work we are doing to improve the service we deliver for our Servicemen and women.
“The Built Estate contracts will create and sustain thousands of jobs and protect local supply chains throughout the UK.
“DIO is committed to building a broader and more diverse supply base, working with both larger companies and SMEs through our supply chain to support local industry and deliver the facilities that the military need to live, work, train and deploy.”
Jerry Moloney, Managing Director, VIVO said:
“VIVO is excited to be awarded this important DIO contract and looking forward to delivering real change and improvement in service quality to the DIO Estate Hard FM services, within the Central region.
“VIVO, DIO, the Armed Forces and stakeholders have the vision, desire and stability to form a long-lasting collaborative partnership that delivers sustainable value for money, high-quality services and investment in local SMEs and communities.
“We are a company dedicated to Defence and are in a unique position to build a truly collaborative partnership entirely focussed on UK Defence. We bring the best of our parent companies Serco and ENGIE together to make a difference to all that live, work and train across the estate.”
As part of FDIS, these contracts are the first of 10 that will be awarded between now and 2022. The later phases of the FDIS programme will see further contracts awarded for Accommodation Services and the management and maintenance of the UK Defence Training Estate.
DIO is committed to improving the services it delivers to its Armed Forces customers and the FDIS Programme is doing this by incorporating customer insight into plans, digitalising services and processes where possible, and building stronger relationships with suppliers.
These improved ways of working will enable DIO to better support the Armed Forces in making investment decisions about how to manage the Defence estate.