Home / Announcements / MoD unveils plans to diversify supply base

MoD unveils plans to diversify supply base

The Ministry of Defence (MoD) has announced plans for modernising its estate and establishing a broader and more diverse supply base.

The Defence Infrastructure Organisation’s (DIO) new procurement plan outlines a programme of major projects and contracts for the next five financial years.

This includes work to construct new buildings, such as housing and accommodation, the refurbishment of current facilities; as well as services such as catering, waste management and cleaning.

The plan also sets out ambitions to establish a broader and more diverse supply base, including doing more business with small and medium size enterprises (SMEs).

By listing all the major projects and contracts, the procurement plan will make it easier for existing and potential suppliers to plan ahead, by offering advice on bidding for this work and greater transparency on working with MoD. These measures will help in particular small businesses, who don’t always have the skills and prior experience of working with MoD in such areas.

Minister for Defence People and Veterans, Tobias Ellwood said: “The defence estate is where our brave armed forces live, work and train and so it’s crucial we give them the best supplies and facilities possible.

“Working with industry is critical to delivering this, and our new Procurement Plan ensures the private sector has a head start in bidding for this crucial work.”

Opportunities outlined in the Procurement Plan include the £4 billion Defence Estate Optimisation Programme, the Future Defence Infrastructure Services contracts – which will provide facilities management across the UK’s military bases- and the £1.3 billion Clyde Infrastructure Programme.

The plan also details several prominent works that demonstrate DIO’s key role in supporting defence throughout the UK. These include essential maintenance work worth £568 million to support nuclear infrastructure capability at HMNB Clyde, as well as a £58 million investment in a modern submarine training facility at the base.

Alongside this, there are plans for an £8 million investment in Bovington Camp to support the AJAX armoured vehicles which will enter service in 2020.

The  Procurement Plan also sets out how DIO can deliver social and economic benefits throughout its supply chain by working to contribute to the government’s aim of recruiting 20,000 apprentices through construction procurement and promoting sustainability through its supply chain.

The full DIO Procurement Plan can be found here: www.gov.uk/government/publications/dio-procurement-plan-2018

The DIO Commercial Strategy sets the direction for future DIO Procurement Plans. The full DIO Commercial Strategy can be found here: www.gov.uk/government/publications/dio-commercial-strategy


About Sarah OBeirne


Leave a Reply

Your email address will not be published. Required fields are marked *