Amey joint venture secures three further Next Generation Estate contracts with the Defence Infrastructure Organisation worth up to £2.8bn

24 Jul 2014

Download a high res copy of this image

Leading UK public and regulated services provider Amey, together with its joint venture partner Carillion, (50:50), has won an additional three contracts with the Defence Infrastructure Organisation (DIO), with a minimum value of £955.3million and that could be worth up to £2.8 billion including additional services and possible extensions.

These contracts form the final part of the DIO’s Next Generation Estate Contracts programme to maintain and upgrade defence infrastructure, and takes the joint venture contract wins to five, including the two contracts awarded in May*. The contracts have a combined value of up to £4.5 billion and will see the Amey joint venture delivering services right across the UK. 

The Amey joint venture has secured the Central**, South East and South West Regional Prime contracts estimated by MOD to be worth a minimum of £432.2 million, £258.1 million and £265 million respectively over the initial five year contract period. 

The new contracts will provide a wide range of hard facilities and asset management services, together with the construction of new buildings across 105 key sites such as: RAF Cranwell, Catterick Garrison, Stafford, Sandhurst, Horse Guards, RNAS Yeovilton, Defence Equipment &Support (DE&S) Abbey Wood and RAF Lyneham. Building maintenance will be complemented with the introduction of management systems designed to improve the energy efficiency performance of the military estate.

In addition, the South West contract has been extended to include providing catering, cleaning and other soft facilities management services at DE&S Abbey Wood and the UK Hydrographic Office.

Mel Ewell, Amey’s Chief Executive, said: “Securing the Regional Prime contracts across the whole of UK is great news for the business and testament to the strength of the partnership with Carillion. This recent win allows us to add value by expanding the service, as well as sharing best practice and driving efficient ways of working across the defence estate.”

The Joint Venture will use these new contracts to create further opportunities to demonstrate their commitment to the Armed Forces Corporate Covenant, which helps ex-service personnel find employment and supports the provision of Reservists.          

Across the Prime contracts, Amey and Carillion have also introduced a delivery model that will support the UK Government’s objective of encouraging the use of Small and Medium-sized Enterprises. 

Carillion Chief Executive, Richard Howson, added: “DIO set industry the challenge of providing added value to the military estate and by awarding us these five contracts providing UK wide coverage, the offers we submitted have been recognised as generating demonstrable benefits in this regard, including the use of market leading customer feedback systems."

Press Contacts