Construction News

Thu November 15 2018

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MoD purchasers look for wider pool of contractors

6 days The Defence Infrastructure Organisation is looking to broaden its range of suppliers, with smaller contractors getting a larger share of its construction budget.

Part of the Ministry of Defence, the Defence Infrastructure Organisation (DIO) has published a new procurement plan outlining its programme of major projects and contacts for the next five financial years.

This includes work to construct new buildings, such as housing and accommodation, the refurbishment of current facilities, and the provision of services such as catering, waste management and cleaning.

The plan also sets out ambitions to establish a broader and more diverse supply base, including doing more business with small and medium size enterprises (SMEs).

Around 75% of maintenance work at defence sites already goes directly or indirectly to SMEs but DIO purchasers believe that further diversifying the supply base will “help build resilience into projects”.

Opportunities outlined in the new procurement plan include the £4bn Defence Estate Optimisation Programme, the Future Defence Infrastructure Services contracts and the £1.3bn Clyde Infrastructure Programme.

The plan also lists maintenance work worth £568m to support nuclear infrastructure capability at HMNB Clyde and a £58m investment in a submarine training facility at the base.

There are also plans for an £8m investment in Bovington Camp to support the AJAX armoured vehicles which will enter service in 2020.

DIO commercial director Jacqui Rock said: “We have worked with industry to produce the procurement plan and we are committed to building a broader, more diverse supplier base.

“We believe in being as transparent as possible in our procurements and through this new approach we are encouraging new entrants, including small and medium sized enterprises, to consider the benefits and opportunities that working with DIO can deliver.

“The procurement plan will help achieve the goals set out in our first ever commercial strategy. This set out our vision for how we do business and how we will work effectively with our suppliers.”

The full DIO procurement plan can be found by clicking here.

MPU

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