The UK Ministry of Defence (MoD) has signed contracts with seven construction companies for the delivery of the £5.1bn ($6.39bn), ten-year defence estate optimisation (DEO) programme.
The Defence Infrastructure Organisation (DIO) has signed a strategic alliance contract with the seven contractors, who were picked from a mini-competition leveraging a Crown Commercial Service framework in August 2022.
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The seven companies include Galliford Try Construction, ISG Construction, John Graham Construction, Kier Construction, Laing O’Rourke Delivery, Lendlease Construction (Europe), and Morgan Sindall Construction & Infrastructure.
Director of MoD Infrastructure Sherin Aminossehe said: “The strategic alliance contract for the Defence Estate Optimisation Portfolio will allow us to capitalise on the wealth of knowledge within the construction industry and harness that expertise in a way we’ve not previously done.
“The contract will ensure we can deliver the right buildings and infrastructure for Defence that will enable our military capability and create the right environment for our people to train, work and live in. We will be delivering at pace and start to see the benefits straight away within projects being mobilised this year.”
DEO is a £5.1bn investment portfolio focused on “delivering a better-structured, modern and more sustainable estate that more effectively supports military capability and aims to enhance the lived experience of our military personnel”.
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By GlobalDataDIO commercial director David Poole said: “The market response was highly positive, with 56 tenders received across our 11 packages of work leading to awards to seven competitive contractors.
“We know how much work goes into preparing competitive tenders and are grateful to the industry for their response. We are delighted with the results we have achieved and look forward now to mobilising our new relationships and delivering excellence for our stakeholders.”
There will be a lot of construction and refurbishment work on both single-living and family accommodations, as well as a range of operational, educational, and technical facilities that span the MoD’s UK estate.
Galliford Try won bids to the Air & UK Strategic Command and Munster Barracks, Catterick lots, which have an approximate value of £387m.
The bids feature these new-build and single-living accommodation projects at Royal Air Force (RAF) bases and Strategic Command facilities across the UK and Catterick Garrison.
Graham Construction has been chosen as the only sole supplier for the £355m Scotland regional set, which includes the Leuchars Barracks project package in Fife to create a new home for the Black Watch battalion.
Under the bid, ISG will construct a £250m, 250-acre new-build barracks and supporting facilities at the 1,250-acre Caerwent Station training area in Monmouthshire, South Wales. This project will lead to a return to Wales for a Welsh Regiment, 1st The Queen’s Dragoon Guards, and 1st Battalion, The Rifles.
Kier has been appointed to deliver one major project for RAF Cranwell in Lincolnshire and one regional package for the British Army in the south of England.
