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Defence facilities bidders set to tender for England and Wales

MOD Abbey Wood

Private sector bidders are set to start tendering for three major MOD facilities management contracts across England and Wales worth up to £4.35bn, following a programme of visits to key Defence establishments.

The Defence estate is valued at approximately £15.3 billion, spanning 230,000 hectares and 45,000 buildings.

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, one national and six regional Capital Works Frameworks for construction projects, a National Housing Prime contract, and the National Training Estate Prime contract. The contracts are estimated to be worth between £500m and £600m per annum, and more than £5 billion over 10 years, exclusive of construction projects.

During September and early October the DIO’s Next Generation Estate Contracts (NGEC) teams have been escorting the bidders to 28 of the 230 main establishments covered by the contracts, selected for their diversity and importance to military outputs. The bidders toured the establishments visiting key buildings and facilities along the way, ranging from office blocks and technical buildings to living accommodation and dining facilities. They also met with DIO site representatives and military site-users to discuss their individual requirements in advance of submitting tenders in December 2012.

Up to four bidders have been shortlisted for each of the three contracts.

The Regional Prime Central is valued at between £800m and £1.8 billion over a minimum of five years and a maximum of 10 years. It will replace the current Regional Prime Contract Central (Northern England, the Midlands and Wales) and Regional Prime Contract East (East Midlands), and is expected to be awarded by early 2014. Major sites include Catterick Garrison, Beacon Barracks Stafford, RAF Shawbury and RAF Valley training bases, DST Leconfield, Wattisham Airfield, RAF College Cranwell, and the intelligence and security centre at Chicksands). The shortlisted bidders are:

  • Axiam Ltd – a joint venture comprising Interserve Defence Ltd and DynCorp International LCC
  • Babcock Support Services Ltd – a division of Babcock International Group plc)
  • Carillion Enterprise Ltd – a joint venture comprising: Carillion Services Ltd and Enterprise Managed Services Ltd
  • KBR – a proposed joint venture comprising Kellogg Brown and Root Ltd and Balfour Beatty Workplace Ltd

The Regional Prime South East is valued at between £500m and £1.2 billion over a minimum of five years and a maximum of 10 years. It will replace the current Regional Prime Contract South East, and is expected to be awarded by early 2014. Major sites include RMA Sandhurst, DMRC Headley Court, HQ Land Forces Andover, Hyde Park Barracks, Woolwich Barracks, Horse Guards, RAF High Wycombe and RAF Northolt. The shortlisted bidders are:

  • Babcock Support Services Ltd – a division of Babcock International Group plc
  • Carillion Enterprise Ltd – a joint venture comprising Carillion Services Ltd and Enterprise Managed Services Ltd
  • KBR – a proposed joint venture comprising Kellogg Brown and Root Ltd and Balfour Beatty Workplace Ltd
  • PriDE (SERP) Ltd – a joint venture comprising Interserve Defence Ltd and SSE Contracting Ltd

The Regional Prime South West is valued at between £600m and £1.35 billion over a minimum of five years and a maximum of 10 years. It will replace the current Regional Prime Contract South West, and is expected to be awarded by early 2014. Major sites include various Royal Marines bases, RNAS Yeovilton, RNAS Culdrose, Defence Equipment and Support (DE&S) headquarters. The shortlisted bidders are:

  • Babcock Support Services Ltd – a division of Babcock International Group plc)
  • Carillion Enterprise Ltd – a joint venture comprising Carillion Services Ltd and Enterprise Managed Services Ltd
  • Landmarc Support Services Ltd – wholly owned by Interserve plc and Computer Sciences Corporation (CSC)

Gill Hodson, the senior NGEC project manager, said:

“DIO’s priority is to support our Armed Forces as they prepare for operations. These three contracts cover significant geographical regions including a variety of key Defence bases and facilities that are vital to the delivery of military capability, and the incoming prime contractor will play an important part in this. From roofing to runways, we are determined to ensure that the bidders develop a real empathy for our military customers’ requirements, which they can then build into the development of their competitive tenders.”

David McLaughlan, the NGEC senior commercial manager, said:

“Good prime contractors need healthy, robust supply chain arrangements, which is why we will be exploring bidders’ plans in this area of development during this key stage in the procurement process.”

The bidders will shortly be issued with a formal invitation to engage in ‘competitive negotiation’ as they develop their Regional Prime tenders. They will also be invited to attend the Defence Academy at Shrivenham in early November for a conference on the service requirements, prior to submitting tenders in December 2012. It is expected that the three contracts will be awarded by early 2014 and in service by mid 2014.

 

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