Today, 21 May, the department confirmed it intends to sign a strategic business partner contract for the Defence Infrastructure Organisation (DIO) with Capita, working in conjunction with URS and PA Consulting.
There will now be a 10-day commercial standstill period before the contract is officially signed. The 10-year contract, worth around £400 million, will help transform the facilities and services across the 230,000-hectare MOD estate that allow our armed forces to live, work, train and deploy on operations.
It also has the potential to deliver substantial savings for the taxpayer, which could reach over £300 million a year during the 10-year contract.
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