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Mon November 30 2020

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Opportunities expand in the defence sector

11 Jan 18 The Defence Infrastructure Organisation, which procures construction and facilities management services on behalf of the Ministry of Defence, is looking to increase the number of its suppliers.

While most companies these days are looking to rationalise their supply chains to get better deals from contractors, the Defence Infrastructure Organisation (DIO) is expanding its.

DIO’s new strategy document, developed in consultation with suppliers, sets out how it aims to transform the way it does business. It also provides information on the types of opportunities available to prospective suppliers.

Central to the strategy is a broader supply base to generate wider competition. DIO is also looking to offer more opportunities to small and medium-sized enterprises (SMEs). It also wants to increase the speed of procurement. The DIO spends £3bn a year on construction and infrastructure services.

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DIO chief executive Graham Dalton said: “The publication of this strategy, in anticipation of the updated 2018 DIO procurement plan, marks an important moment for DIO. We realise that we have not been the easiest organisation to do business with in the past and we are dedicated to changing that.

“This strategy sets out our intent to broaden our supply base, and for our existing and prospective suppliers to have the confidence to work with us. We will work in an open and constructive way to deliver innovative and value for money services that meet the requirements of defence and the armed forces.”

Defence Tobias Ellwood said: “The defence estate is where our armed forces live, work, train and deploy from and it’s crucial we give them the best infrastructure possible. Working with industry is key, and this commercial strategy will ensure that the £3bn we invest each year in our estate gives more value for money, is better aligned to military needs and gives more certainty to the defence supply chain.”

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