Amey and Carillion joint venture selected by the Defence Infrastructure Organisation for two Next Generation Estates contracts worth up to £1.7 billion including additional services and extensions

12 May 2014

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Leading UK public and regulated services provider Amey, together with its joint venture partner Carillion, has won the Scotland and Northern Ireland Regional Prime contract and re-secured the National Prime Housing contract potentially worth up to £1.7 billion in total.

These contracts form part of the Defence Infrastructure Organisation’s (DIO) Next Generation Estate Contracts programme to maintain and upgrade Defence infrastructure.

The Joint Venture between Amey and Carillion (33:67) has won the National Prime Housing contract which is estimated by MoD to be worth in the order of £625 million over the initial five-year contract period and can be extended by a further five years subject to approval.

Under this contract the Joint Venture will provide a wide range of hard facilities management services, including routine maintenance, occupancy management, furniture installation, energy efficiency services, statutory inspections and improvements for more than 49,000 military homes throughout the UK. This enlarged contract replaces the contract currently held by the Joint Venture under which it delivers similar services for military houses in England and Wales.

The Amey and Carillion (50:50) Joint Venture has also been awarded the Scotland and Northern Ireland Regional Prime contract which is estimated by MoD to be worth in the order of £150 million over the initial contract period of five years. This can also be extended by a further five years, subject to approval.

Under this contract, the Joint Venture will provide a wide range of hard facilities and asset management services across 30 key sites including RAF Lossiemouth, RAF Leuchars, Kinloss Barracks, HMS Caledonia and Kentigern House in Scotland, and Aldergrove Airfield, Thiepval Barracks and Kinnegar Logistics Base in Northern Ireland, together with the provision of new buildings. Hard facilities management services will include planned and reactive building fabric and mechanical and electrical engineering maintenance, together with utility efficiency services. The service delivery model has also been designed to support the UK Government’s objective of encouraging the use of Small and Medium-sized Enterprises.

Mel Ewell, Amey’s Chief Executive, said: “We are delighted that the DIO has selected the Joint Venture to deliver the Scotland and Northern Ireland, and National Housing Prime contracts. Working collaboratively we not only provide essential improvements to the defence estate, but will support the DIO in their drive to reduce carbon emissions through the introduction of sustainable best practice and innovation.”

Both Amey and Carillion will also 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.

Carillion Chief Executive, Richard Howson, said: “We are delighted that our Joint Venture has been selected for these major contracts. We look forward to building on the strong relationship we have developed with Defence Infrastructure Organisation and to working closely with DIO to deliver further improvements to the quality and energy efficiency of the Defence estate.”

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