The Defence Infrastructure Organisation (DIO) has revised the timings of its Next Generation Estate Contracts (NGEC) programme, following a major review of the procurement schedule for its future UK estate commercial arrangements.
NGEC is developing a new suite of contracts for the UK Defence estate, comprising four Regional Prime contracts for hard facilities management, one national and six regional Capital Works Frameworks for construction projects, a National Housing Prime contract, and the National Training Estate Prime contract. The contracts are estimated to be worth between £500m and £600m per annum, and more than £5 billion over 10 years, exclusive of construction projects.
The prime contracts will now be awarded in early 2014, and the first Capital Work Framework - for East Midlands and Eastern England - will be awarded in August 2013. This revised schedule reflects the impact of various emerging factors, including the Strategic Defence and Security Review (SDSR), the creation of DIO and the high degree of industry interest shown by industry which led to the evaluation process taking longer than planned.
HM Treasury has formally approved the changes to the programme and the necessary extensions to the existing UK contracts.
Steve Rice, Head of NGEC, said:
We now have in place formal approval to take forward this major procurement programme, and I am encouraged by the enthusiasm of industry to be involved in delivering these new contracts. We all recognise the importance of NGEC for our military customers, and we will continue to work with our current contractors to ensure that existing service levels are maintained right up to the new arrangements coming into service.
The programme is currently in the early stages of competitive dialogue and bidder tendering for the prime contracts and capital works frameworks.
NGEC sits within the wider Transforming Defence agenda, contributing to the creation of a smaller, more professional Ministry of Defence that supports Ministers in setting and meeting clear priorities, supports the Armed Forces in delivering what they are tasked to do, and reports honestly and openly on its activities and performance.
**NGEC revised programme **
** Contract award In-service
**Regional Prime Scotland
& Northern Ireland 24/01/14 21/07/14
National Housing Prime 05/03/14 05/11/14
National Training Estate Prime 05/03/14 22/09/14
Regional Prime South East 17/03/14 30/09/14
Regional Prime South West 17/03/14 30/09/14
Regional Prime Central 17/03/14 30/09/14
Regional Capital Works Framework East Midlands & Eastern England: 16/08/13
National Capital Works Framework: 18/05/14
Other regional frameworks: To be confirmed