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Sat July 31 2021

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Serco Engie JV wins £3.4bn defence maintenance deal

14 Jun A joint venture of Serco and Engie has won work under the new-style defence estates programme to look after army barracks and other military property.

Britannia Royal Naval College in Dartmouth
Britannia Royal Naval College in Dartmouth

Vivo Defence Services has been awarded contracts for two of the four regions being tendered under Lot 3 of the Future Defence Infrastructure Services (FDIS) programme. 

The contracts have an estimated base value of £900m over the initial term of seven years and total potential value of £3.4bn with extensions and additional project work.

Defence Infrastructure Organisation has selected Vivo to provide services in the southwest and central regions of the UK, the largest two regions of the four that were competed, and which represent around two-thirds of the estimated value of Lot 3 of the Future Defence Infrastructure Services contracts.

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Vivo will maintain the Ministry of Defence’s built estate across more than 200 sites and around 19,000 buildings.  The core services include planned and reactive maintenance, as well as mandatory safety checks.  The potential additional project work will range from small scale asset replacement and property refurbishments to large construction projects.  Following a six-month mobilisation phase, the core work is scheduled to start in February 2022.

Serco chief executive Rupert Soames chief executive said: "Serco has a proud 50-year history of supporting the UK's armed forces, with contracts supporting activities at many military bases, including Brize Norton, Fylingdales, Yeovilton and Northolt, as well as supporting the Royal Navy at Portsmouth, Plymouth, Faslane and Kyle of Lochalsh, and the UK government's Skynet secure satellite communications system.  Vivo combines Serco's expertise and understanding of the MoD with Engie's deep expertise in facilities management and we look forward to working together to support the UK armed forces."

The new Future Defence Infrastructure Services contracts replace the Next Generation Estate Contracts (NGEC) and introduce contracts for the estate where service personnel live, work and train. This includes the contractual arrangements for Service Family Accommodation (SFA). The contracts are designed to support a more planned and predictive maintenance regime. The contracting model adopts the industry standard from the Services and Facilities Group of the Building Engineering Services Association (SFG20), incentivising service efficiency and quality and introducing price-per-property arrangements.

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