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Tue July 27 2021

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Amey and Vivo land MoD housing maintenance deals

25 Jun Ministry of Defence building maintenance contracts worth £650m have been awarded for the upkeep of military family housing.

Army housing at Larkhill on Salisbury Plain will be looked after by Vivo, an Engie/Serco joint venture
Army housing at Larkhill on Salisbury Plain will be looked after by Vivo, an Engie/Serco joint venture

Amey and Vivo will look after 39,000 service family homes across the UK over the next seven years.

The four new regional accommodation maintenance service (RAMS) contracts – two for each supplier – form the next phase of the Future Defence Infrastructure (FDIS) programme.

Amey Community Ltd has an £84m contract for the northern region of the UK including, Scotland, Northern Ireland and North Wales. It also has a £126m contract for the central region of the UK, covering the Midlands and Mid and South Wales

Vivo, a joint venture of Engie and Serco, has a £148m contract for the southeast of England and a £148m contract for the southwest.

There are a further three one-year extension options plus the opportunity for significant project work beyond the core contracts. Vivo said that it was expecting to get £514m total revenue from the deal over the initial seven-year term.

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Pinnacle Group has been given a £144m to run a call centre for accommodation issues.

Air Commodore James Savage, head of accommodation at the Defence Infrastructure Organisation, said: “These new contracts offer the opportunity to break decisively from the past and to build on the commitments made by all suppliers to innovate and deliver more responsive and flexible services to the armed forces and their families.”

The accommodation services contracts follow the recent announcement of £1.6bn contracts to deliver hard facilities management services across the UK defence estate. As previously reported, these went to:

  • Vinci Facilities: £423m for the southeast of England
  • Mitie: £160m for Scotland and Northern Ireland
  • Vivo: £558m for central UK (Wales, Midlands, north of England)
  • Vivo: £336m contract for the southwest of England.

The final phase of the FDIS programme will see a contract awarded for the management and maintenance of the UK defence training estate. 

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