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Carillion, Babcock and Kier to fight it out for £1.5bn MoD housing job

The Defence Infrastructure Organisation has named Kier & Turner Facilities Management, Carillion & Enterprise Managed Services and Babcock as the three shortlisted bidders for the £1.5 billion national housing prime contract.

The contract, due to start in 2013, will see the successful bidder provide repairs and maintenance to more than 49,000 UK military homes, grounds maintenance and housing construction projects with an individual value of up to £3.93 million.

The contract could be extended to provide further facilities management services.

Head of DIO accommodation air commodore Alan Opie said:  “DIO’s top priority is to support our Armed Forces.

“A vital element of this is to ensure we continue to provide our military personnel and their families with good accommodation and related services, which also demonstrate value for money.

“Successful collaborative partnering is the key to meeting this requirement, so it is vital that we use the procurement process to identify the best possible industry partner for this significant commercial arrangement.”

The three bidders emerged from a packed field of contenders.

Some 53 lead contractors submitted expressions of interest, along with 63 firms that registered as supply chain partners.

Among those interested were Durkan, Keepmoat, Lovell, Mears, Mitie, Morrison, Thomas Vale, Vinci, Wates and Willmott Dixon.

DIO’snext generation estate contracts team will now stage detailed ‘competitive dialogue’ discussions with the three bidders.

The DIO’s contract project manager Colonel Bill Morris said:  “This opportunity has attracted a huge span of businesses of differing sizes and specialisations, and I am delighted that we now have three experienced organisations selected to proceed to competitive dialogue for this prime contract.

“These contractors now need to build a healthy and competitive supply chain involving a range of enterprises to deliver the housing service to military families.”

It is expected that the contract will be awarded in late 2012, and run from April 2013 for five years, with the option to extend it by a further five years.

It will replace the current housing contract for England and Wales and the separate arrangements for provision of housing in Scotland and Northern Ireland.

To help small and medium-sized enterprises (SMEs) identify potential supply chain and subcontracting opportunities, the NGEC programme will shortly publish contact details for the shortlisted bidders.

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