News story

Defence estate strategic business partner contract

The Ministry of Defence has confirmed the private sector partner it intends to bring in to help improve the running of its estate.

The Afghan Village at Stanford Training Area (STANTA) (library image) [Picture: Petty Officer Airman (Photographer) Sean Clee, Crown copyright]
The Afghan Village at Stanford Training Area (STANTA) (library image)

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.

Runway resurfacing at RAF Scampton
Runway resurfacing at RAF Scampton (library image) [Picture: Crown copyright]

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
  • improving how change is managed across DIO
Published 21 May 2014