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Fri May 20 2022

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Vinci and Mitie join Vivo on the defence estate

15 Jun 21 The Ministry of Defence has awarded four building maintenance contracts totalling an initial £1.6bn and a potential £5bn+.

RAF Lossiemouth will be under Mitie's remit
RAF Lossiemouth will be under Mitie's remit

Following our report yesterday that Vivo, a joint venture of Serco and Engie, had won two of the four regions, it soon emerged that Mitie and Vinci had won the other two regions.

The new Future Defence Infrastructure Services (FDIS) contracts replace the Next Generation Estate Contracts (NGEC) for looking after more than 400 Ministry of Defence (MoD) sites across the UK, including RAF Lossiemouth, Catterick, Andover, and Britannia Royal Naval College in Dartmouth.

The seven-year contracts go to:

  • Vinci Facilities: £423m for the southeast of England
  • Mitie: £160m for Scotland and Northern Ireland
  • Vivo: £558m for central UK (Wales, Midlands, north of England)
  • Vivo: £336m contract for the southwest of England.

The facilities management contracts cover maintenance of defence buildings, accommodation and training facilities across the UK estate, including plumbing and electrical works, and offering general infrastructural repair services.

As part of FDIS, these contracts are the first of 10 that will be awarded by the Defence Infrastructure Organisation (DIO) between now and 2022. The later phases of the FDIS programme will see further contracts awarded for accommodation services and the management and maintenance of the UK defence training estate.

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As reported yesterday, beyond the initial value of the maintenance contract comes the likelihood of a lot of capital work from the defence estate. Vivo said that its initial £900m contracts had a total potential value of £3.4bn with extensions and additional project work.

Vinci said that its £423m core contract could come with an additional £732m of billable works, making it worth up to £1,115m.

Vinci Facilities will be managing over 6,200 buildings and infrastructure assets in over 59 establishments. Managing director Tony Raikes said: “In collaboration with the DIO and MoD, this is an opportunity for us to replicate a capability we have demonstrated with many public and private sector customers across the UK, using our expertise, knowledge and passion to help improve the MoD’s buildings and infrastructure.”

Mitie will deliver grounds, reactive and scheduled maintenance services for 4,400 buildings over 91 sites across Scotland and Northern Ireland, including Edinburgh Castle and Abercorn Barracks, RAF Kinloss and RAF Lossiemouth. Mitie's contract is worth up to £646m over seven years, including project and billable works.

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