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Contractors appointed to £400m Ministry of Justice deals

Amey and Carillion have been appointed to FM deals worth up to £400m over five years by the Ministry of Justice.

The contractors will carry out works including maintenance, works and building projects, management of prison stores and waste disposal and collection.

The MoJ said the deals would save taxpayers around £115m over the five years.

The preferred bidders are:

  • Lot 1 Amey – North-east, North-west, Yorkshire & Humber
  • Lot 2 Amey – East Midlands, West Midlands, Wales
  • Lot 3 Carillion – East of England, London
  • Lot 4 Carillion – South-west, South Central, Kent and Sussex

The competition was formally launched in January 2014 and Amey and Carillion will start providing services on 1 June 2015.

The contracts cover around 50 prisons and could be extended beyond five years, with scope for two one-year extensions, subject to satisfactory performance. 

Carillion was an unsuccessful bidder for the £1bn MoJ Strategic Alliance Agreement Framework for Construction in 2012, for which Amey was not a shortlisted bidder.

The firms’ joint venture has also had remarkable success in defence this year, where they have won work worth almost £2bn between them for their combined order books.

A CarillionAmey joint venture was appointed to three Regional Prime contracts covering the Central, South-west and South-east regions, worth an initial £435m, £265m and £258m respectively in July.

Each of the contracts runs for an initial five years from February 2015, with the option to be extended up to an additional five years.

Interserve had challenged the award of the deals but was unsuccessful, and its chief executive Adrian Ringrose told Construction News the firm has “moved on amicably” with the DIO following the legal challenge.

In May, CarillionAmey also won two DIO estates contracts – the National Housing Prime and Northern Ireland Prime – worth a combined £778m.

Carillion/Amey beat Babcock Support Services and a joint venture between Kier and Turner Facilities Management to the £626m National Housing Prime contract covering repairs and maintenance across 49,000 military homes.

The JV also saw off competition from Babcock Support Services, Interserve and a joint venture between Turner Facilities Management and Henry Brothers to win the £152m Scotland and Northern Ireland Prime Contract.

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