The contracting team, called Debut Services, will provide a permanent base for 3 Commando Brigade Royal Marines Armoured Support Group.
Work will start on site in February 2013 to provide maintenance facilities for the Royal Marines' amphibious armoured vehicles.
New amenities for the Royal Marines will include bedrooms for around 120 military personnel and motor transport facilities to service 26 vehicles, which will include servicing, repair bay, covered vehicle parking and stores.
The Royal Marine Armoured Support Group runs a fleet of more than 180 armoured fighting vehicles and also provides catering and accommodation facilities for up to 2,000 soldiers.
The contract is DIO’s latest award of work under the Regional Prime Contract (RPC) South West.
Debut Services manages both the RPC for the South West and the Functional Prime Contract to build, refurbish and maintain single living accommodation for HM Armed Forces (Project SLAM). The RPC South West is now in its eighth year with 81 construction projects completed, worth £390m. There is some £45m-worth of work currently under construction.