News story

DIO awards contract for strategic business partner

The Defence Infrastructure Organisation (DIO) has awarded the contract for its strategic business partner (SBP) to Capita, working with URS and PA Consulting.

Construction work at Royal Naval Air Station Culdrose [Picture: Crown copyright]
Construction work at Royal Naval Air Station Culdrose

The 10-year contract, worth around £400 million, will help transform the facilities and services 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.

This is largely by unlocking savings in hard and soft facilities management costs by reducing the footprint of the defence estate.

Mark Hutchinson, DIO’s acting chief executive, said:

DIO’s priority is to support our armed forces by providing the places they need to live, work, train and deploy on operations.

We have reached a milestone in our continuing journey to transform the way we deliver services to our estate users.

Our partnership with Capita reinforces the existing DIO management structure, and will enable us to enhance the important services that we provide to defence whilst making cost savings.

The award of the contract to Capita has followed a rigorous procurement process that demonstrated that DIO would be strengthened and enhanced by working with an SBP.

Published 9 June 2014