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Tue March 02 2021

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Carillion and Amey scoop £2.8bn of defence contracts

24 Jul 14 A joint venture of Carillion and Amey has signed three further contracts with the Defence Infrastructure Organisation (DIO) potentially worth up to £2.8bn.

Catterick Garrison is among the sites covered
Catterick Garrison is among the sites covered

The three contracts form the final part of the Defence Infrastructure Organisation's (DIO) Next Generation Estate Contracts (NGEC) programme to maintain and upgrade defence infrastructure.

The award follows the announcement in May that Carillion and Amey joint ventures had won the National Housing Prime contract and the Scotland and Northern Ireland Regional Prime contract.  The five NGECs won by the Carillion and Amey joint ventures have a total potential value of £4.5bn including additional services and extensions.

A Carillion joint venture with Amey has been awarded the Regional Prime Central contract that is estimated by MoD to be worth in the order of £435m over the initial contract period of five years, which can be extended by a further five years, subject to approval. This enlarged contract replaces an existing contract. The joint venture will provide a range of hard facilities and asset management services at more than 150 establishments containing more than 14,000 assets at sites including RAF Cranwell, Catterick Garrison, RAF Valley and MoD Stafford, together with the option to undertake capital works projects valued up to £3.93m.

The Carillion joint venture has also been awarded the South East and South West Regional Prime contracts that are estimated by MoD to be worth in the order of £258m and £265m, respectively, over the initial contract period of five years. The South East contract will provide hard facilities and asset management services at 60 key sites, including Sandhurst, Horse Guards, HQ Land Andover and RAF Northolt. The South West contract will provide hard facilities and asset management services at 40 key sites, including RNAS Yeovilton, DE&S Abbey Wood, RAF Lyneham and Britannia Naval College. 

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All three contracts, together with the contract in Scotland and Northern Ireland, which was announced in May, will deploy a service delivery model that will support the UK Government's objective of encouraging the use of small and medium-sized enterprises.

Both Carillion and Amey will also use these new contracts to create further opportunities to demonstrate their commitment to the Armed Forces Corporate Covenant, which helps ex-service personnel find employment and supports the provision of reservists.  

Carillion chief executive Richard Howson said: ""DIO set industry the challenge of providing added value to the military estate and by awarding us these five contracts providing UK wide coverage the offers we submitted have been recognised as generating demonstrable benefits in this regard, including the use of market leading customer feedback systems."

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