The UK Ministry of Defence (MoD) has selected Capita as its preferred bidder in the competitive procurement of a strategic business partner for the Defence Infrastructure Organisation (DIO).
Capita will lead a team of integrated sub-contractors URS and PA Consultingto transform the facilities and services that enable the UK armed forces to live, work, train and deploy on operations.
Valued at around £400m, the ten-year contract also has the potential to deliver substantial savings for the taxpayer, which could reach over £300m a year during the performance period.
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."
UK Defence Secretary Philip Hammond said: "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 team will initially deliver an 18-month transformation project designed to produce a blueprint for the future strategic asset management of the estate, which will subsequently be executed in partnership with the MOD to create a world-class infrastructure delivery organisation capable of supporting the long-term objectives of the ministry.
The strategic business partner is expected to provide greatest benefit and additional capability in development of a strategic plan to help identify potential savings and commercial opportunities, improving access to market-competitive knowledge and skills, and better access to private funding for key efficiency improvements.
The DIO will consult further with trade unions with aim to award the contract early this year.
Image: Runway resurfacing at Royal Naval Air Station Culdrose, UK. Photo: courtesy of Crown copyright.