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MoD unveils £15bn defence estate pipeline

The Ministry of Defence plans to spend £4bn optimising its defence estate as part of its latest £15bn five-year procurement pipeline.

The MoD’s estates management arm the Defence Infrastructure Organisation (DIO) has announced a raft of schemes covering the next five financial years.

Among these is the defence estate optimisation programme, which aims to help deliver a 30 per cent reduction in the MoD’s built estate by 2040.

The programme will also release surplus land to support wider government targets, and see £1bn of capital disposals by 2021.

Works under the optimisation drive will be split into 16 sub-programmes and include providing facilities for personnel who leave disposed sites, developing those sites and supporting the disposal process.

Other large-scale programmes within the DIO’s pipeline include £3.73bn of facilities management across various contracts for training and housing estates, £1.8bn on upgrading four army bases between 2019 and 2021, and £1.3bn on the navy’s Clyde infrastructure programme.

The army basing programme will upgrade barracks in Scotland, Salisbury Plain and Catterick, including 1,500 new homes and 4,500 single-living accommodation bed spaces.

The pipeline also includes £568m of maintenance on nuclear infrastructure and £58m for a modern submarine training facility at the navy’s Faslane base.

The DIO’s procurement plan also includes measures aimed at helping SMEs win work and broaden the supply base for projects.

According to the MoD, around 75 per cent of spending on maintenance at defence sites goes directly or indirectly to SMEs.

It added that further diversifying the supply base would help build resilience into projects and provide more opportunities for smaller companies to work on defence projects.

DIO commercial director Jacqui Rock said: “We believe in being as transparent as possible in our procurements and through this new approach we are encouraging new entrants, including small and medium-sized enterprises, to consider the benefits and opportunities that working with DIO can deliver.

“The Procurement Plan will help achieve the goals set out in our first ever commercial strategy. This set out our vision for how we do business and how we will work effectively with our suppliers.”

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