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MOD shortlists potential infrastructure partners

The Defence Infrastructure Organisation (DIO), the Ministry of Defence's property and services provider, has selected three consortia to continue to potentially become its private sector business partner.

This was published under the 2010 to 2015 Conservative and Liberal Democrat coalition government
An aerial view of RAF Northolt

An aerial view of RAF Northolt [Picture: Crown Copyright/MOD 2012]

Following a robust procurement exercise, launched in May 2012, the three consortia that have been selected are:

• Telereal Trillium / KPMG / Mace
• Serco / DTZ / Bechtel
• Capita / URS / PA Consulting

This marks a significant step in DIO’s Transformation Programme. Long-term partnering with industry may enable DIO to harness the expertise available in the private sector to create a world-class, sustainable, efficient and professional organisation at the best cost to the taxpayer.

Defence Secretary Philip Hammond said:

I am pleased to announce that three consortia consisting of Telereal Trillium / KPMG / Mace, Serco / DTZ / Bechtel, and Capita / URS / PA Consulting have been selected to continue in the competition to become the Defence Infrastructure Organisation’s Strategic Business Partner.

Nineteen months ago DIO embarked on a major internal transformation with the intent of becoming an efficient, world-class supplier of infrastructure, providing the level of service that our Armed Forces deserve, in a way that provides best value for money to the taxpayer. This work includes a radical transformation of the business processes and management information systems that underpin the DIO.

Our search for a Strategic Business Partner is expected to extend the capability of the DIO further by allowing it access to private sector skills and innovation. This is an example of where the private sector can add significant value in working with the public sector through a long-term strategic partnering arrangement to deliver benefits for both parties.

In this regard, DIO is at the forefront of a larger Transformation Programme across Defence, as recommended by Lord Levene in his 2011 report on Defence Transformation. If this type of partnering arrangement proves successful, it offers the potential for further use in other parts of Defence in future.

I look forward to the competition progressing over the coming months and working with officials in DIO to ensure that we choose the best partner for the DIO.

In addition, Chief Executive of the DIO, Andrew Manley, said:

We were delighted with both the quality and quantity of responses from industry, which allowed us to carry out full and thorough evaluation before arriving at our choice of candidates to take through to the next stage of the process.

This is an exciting stage in our transformation process, which is already well-advanced in changing the way that we work. We are on the way to becoming a world-leading infrastructure provider, and we welcome the potential involvement of an industrial partner to extend our transformation further.

The DIO plans to issue the three selected consortia with an Invitation to Negotiate in the next few weeks. The consortia will be asked to further prove that they can provide the MOD with the right skills and expertise before the DIO makes a final decision regarding their preferred Strategic Business Partner next summer. However, a contract will only be awarded if it can be found to provide value for money to the MOD and the taxpayer.

Published 22 August 2012