The Ministry of Defence has confirmed it as chosen a Capita-led consortium as its strategic business partner to manage its £28bn estate.
The MoD has announced that a consortium of Capita, URS and PA Consulting will help improve the running of its 568,000-acre estate, working with Defence Infrastructure Organisation, which manages and develops the defence estate.
The 10-year contract, worth around £400m, will help transform the facilities and services used by the armed forces to live, work, train and deploy on operations.
It also has the potential to deliver substantial savings for the taxpayer, which could reach more than £300m a year during the contract.
Defence secretary Philip Hammond said: “Working with a strategic business partner will bring in private sector expertise to enhance the Defence Infrastructure Organisation and deliver value-for-money and potentially hundreds of millions of pounds of savings for the taxpayer.
“This is another step along the way in implementing Lord Levene’s reforms and will allow us to tap into the innovation and expertise of the private sector so that we can deliver the best possible infrastructure and services for our armed forces.”
The DIO will now consult further with trade Unions and it is expected the contract will be awarded in spring 2014.
Capita chief executive Andy Parker said: “Capita brings a unique breadth of expertise to the MoD from business process transformation through to multi-disciplinary property and infrastructure services.
“The partnership will help to unlock the knowledge, skills and resources that already exist within the DIO, while adding capability to tackle the significant cost-saving targets currently facing the MoD.”
nick.whitten@estatesgazette.com
