The Ministry of Defence (MoD) has announced Capita, working in conjunction with URS and PA Consulting, as its preferred bidder in the competitive procurement of a strategic business partner for the Defence Infrastructure Organisation (DIO) – the organisation which manages and develops the 230,000 defence estate.
Defence Secretary Philip Hammond, said:
“Working with a strategic business partner will bring in private sector expertise to enhance the Defence Infrastructure Organisation and deliver value-for-money and potentially hundreds of millions of pounds of savings for the taxpayer.
“This is another step along the way in implementing Lord Levene’s reforms and will allow us to tap into the innovation and expertise of the private sector so that we can deliver the best possible infrastructure and services for our armed forces.”
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.
Following today’s preferred bidder announcement, the Defence Infrastructure Organisation will now consult further with trade unions and it is expected the contract will be awarded in spring 2014.