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MOD reopens competition for Scottish construction projects

This was published under the 2010 to 2015 Conservative and Liberal Democrat coalition government

Industry competition is now open for arrangements to deliver construction projects up to £12 million on the Scottish military estate.

Contractor working on the MOD estate (stock image) [Picture: Crown copyright]
Contractor working on the MOD estate (stock image)

The Defence Infrastructure Organisation (DIO) is now encouraging businesses of all sizes to be involved in the procurement process.

Developed under the DIO Next Generation Estate Contracts (NGEC) programme, the Regional Capital Works Framework Scotland has an estimated value of between £100 million and £250 million, and is designed to generate ever-improving value for money.

It will include up to 5 framework contractors, and DIO will award projects individually by running ‘mini-competitions’ to identify the most cost-effective provider of design and build work in each instance.

DIO sought initial expressions of interest in this framework in 2011, along with another 5 UK regional frameworks.

It was then decided to await further detail on military rebasing plans emerging from the Strategic Defence and Security Review before proceeding further with procurement, to ensure adequate future demand for construction projects.

It is expected that the framework will be awarded by mid-2014, running for an initial 4-year period, with the potential to extend for up to 3 years. It will operate in parallel to the National Capital Works Framework for higher value and more complex projects worth up to £50 million.

Potential framework contractors will need to show a minimum turnover of £18 million and experience of project-managing construction projects worth over £5 million in recent years, reflecting the potential size of project requirements.

DIO will host an industry day at Redford Barracks, Edinburgh, in April for both potential framework contractors and supply chain businesses to provide an overview of UK Defence, the NGEC programme and the scope of the Scotland framework. The event will also provide opportunities for supplier networking.

Steve Rice, Head of the NGEC programme, said:

Defence rebasing is expected to generate significant changes to estate and infrastructure – including on some Scottish military bases – which will generate new construction requirements.

In these financially challenging times we believe this framework model will maximise value for every pound spent on construction, while ensuring that design and build opportunities remain open for a wider range of national and local businesses.

Contractor working on the MOD estate (stock image)
Contractor working on the MOD estate (stock image) [Picture: Crown copyright]

Jon Wooden, NGEC Capital Works Frameworks project manager, said:

Successful construction projects demand excellent contractors and suppliers. We are determined to identify companies capable of delivering Defence construction projects for Scotland flexibly, sustainably and cost-effectively.

We are also keen that smaller and local enterprises with innovative solutions get involved in networking at our industry day.

In support of the UK Government Construction Strategy launched in May 2011, the NGEC Capital Works Frameworks are designed to reduce costs, improve value for money, and will include measures such as: use of project bank accounts, the nec3 form of procurement, more focused performance management, and continuous improvement mechanisms.

DIO is also developing more coherent programming of construction projects to provide industry with better visibility of emerging requirements.

The forward plan for the delivery of UK construction projects is determined by the Defence Infrastructure Programme, which balances future requirements against affordability levels, and the MOD’s emerging ‘Footprint Strategy’, which is focusing on the optimum geographical solution for meeting those requirements.

A contract notice has been issued to the Official Journal of the European Union Tender Electronic Daily and the Defence Contracts Online websites.

It provides further information on the framework, and explains the arrangements for submitting expressions of interest (EOIs), and for potential bidders and supply chain companies to register to attend the industry day.

The period for all potential bidders to submit EOIs for this contract ends at 1200 hours on 12 April 2013.

Published 14 March 2013