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Interserve, Babcock, Carillion and KBR compete for £4bn defence deal

29 Jun 12 Interserve, Babcock, Carillion and KBR have been shortlisted for Ministry of Defence facilities management work worth up to £4.35bn

RAF Northolt, part of the southeast contract
RAF Northolt, part of the southeast contract

Defence Infrastructure Organisation (DIO) has shortlisted these four contractors to bid for three major new prime contracts for the delivery of facilities management to Defence establishments across England from 2014.

Developed under the Next Generation Estate Contracts (NGEC) programme, the contracts have an estimated combined value of up to £4.35bn over a minimum of five years and a maximum of 10 years. Individual contract values range between £500m and £1.8bn, depending on potential contract extensions.

The NGEC team has evaluated evidence of bidders' capacity and capability submitted in pre-qualification questionnaires (PQQs). This included technical capability, health and safety, financial standing, quality assurance, environmental management, and equal opportunity and diversity.

The contracts and shortlisted bidders are:

Regional Prime Central (including Catterick Garrison, Beacon Barracks Stafford, RAF Shawbury and RAF Valley training bases, DST Leconfield, Wattisham Airfield, RAF College Cranwell, and the intelligence and security centre at Chicksands):

  • Axiam – a joint venture of Interserve Defence and DynCorp International
  • Babcock Support Services
  • Carillion Enterprise – a joint venture of Carillion Services and Enterprise Managed Services
  • KBR – a proposed joint venture comprising Kellogg Brown & Root and Balfour Beatty Workplace

Regional Prime South East (including RMA Sandhurst, DMRC Headley Court, HQ Land Forces Andover, Hyde Park Barracks, Woolwich Barracks, Horse Guards, RAF High Wycombe and RAF Northolt):

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  • Babcock Support Services
  • Carillion Enterprise
  • KBR
  • PriDE (SERP) – a joint venture of Interserve Defence and SSE Contracting

Regional Prime Central (including Catterick Garrison, Beacon Barracks Stafford, RAF Shawbury and RAF Valley training bases, DST Leconfield, Wattisham Airfield, RAF College Cranwell, and the intelligence and security centre at Chicksands):

  • Axiam (Interserve/DynCorp)
  • Babcock Support Services
  • Carillion Enterprise
  • KBR 

The successful bidders will provide maintenance and repairs to the Defence estate. Other services will include a 24/7 helpdesk for estate-users, a regional energy management bureau, grounds maintenance, and snow and ice clearance, with the delivery of soft FM services to some sites included for the southwest. Each contract also includes options for land management services and construction projects valued below £3.93m.

Steve Rice, head of the NGEC programme, said: "Our top priority is to support our Armed Forces as they prepare for operations, while ensuring value for money, and our next generation of industry partners and suppliers will have a significant part to play in achieving that.

"The regional primes have attracted a high level of interest from businesses of all sizes, and I am pleased that following a rigorous evaluation process we have established strong competitive shortlists of bidders with whom we can discuss our detailed requirements."

The bidders will soon begin the tendering process with a programme of visits to selected Defence establishments, followed by invitations to submit tenders in October 2012. Final tenders are expected before March 2013, with the preferred bidder being announced by April 2014.

The three regional contracts for England are expected to start in September 2014, replacing the two current regional prime contracts for southeast and southwest, and introducing a new single regional prime contract for the existing separate central and east regions. A fourth regional prime – for Scotland and Northern Ireland – was launched in 2011 and is already well advanced in the tendering process.

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MPU

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