The Ministry of Defence has awarded a landmark IT infrastructure contract to IBM as it prepares to select one of three consortia to manage its future estates.
IBM will introduce and support a new information management system for the MoD’s property and services provider, the Defence Infrastructure Organisation.
The contract comes four months after the MoD delayed the award of its Next Generation Estate Contracts, an estates partnership scheme that is expected to be worth more than £400 million a year but which was postponed because of the overwhelming interest from the construction industry.
CN reported in August that staff from the winning consortium could be seconded to the DIO under an incentive-based contract.
The DIO has asked each consortium to set the fee it would charge for a core management team to be seconded into the organisation, with the winning team set to be paid a percentage of the savings it achieves.
Bidders will be required to manage DIO’s operations, staff and existing and new suppliers; develop and implement a ‘strategic asset management plan’ for its estate; and devise ways to improve efficiency across the MoD estate.
Long-term partnering is intended to “harness the expertise available in the private sector to create a world-class sustainable, efficient and professional organisation at the best cost to the taxpayer”, said the DIO.
The shortlisted consortia are: Telereal Trillium / KPMG / Mace; Serco / DTZ / Bechtel; and Capita / URS / PA Consulting.
Commenting on the IBM award, a DIO spokesperson told CN: “There are a number of interdependencies between NGEC and this technology procurement and implementation, as well as the wider programme, which will be carefully managed in a co-ordinated way.”