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Contractor sought for £500m defence maintenance deal

Defence Estates has kicked-off procurement of its huge next generation estate contracts by calling for expressions of interest in a facilities management, repairs and maintenance deal covering Scotland and Northern Ireland and worth up to £500 million.

A notice for the seven-year ‘hard FM’ contract will appear in OJEU imminently.

Estimated to be worth between £300m and £500m, the deal include options for housing maintenance and repairs, allocations, move-in move-out, lands management, rural services and construction projects valued below £3.93m.

This is the first of several deals expected to come to the market over the nest 12 months as a series of long-term contracts are coming to an end.

Although the exact level of spending in the wake of the public sector cuts is unknown, the work was previously estimated to be worth at least £500m per year.

Head of the NGEC programme Steve Rice said: “This contract will ensure that industry delivers a responsive, flexible and cost-effective facilities management service for MOD establishments across Scotland and Northern Ireland. The challenge for Defence Estates is now to identify the most suitable industry partners with which to deliver that important work.

“We are particularly keen that the supply chain should be open to small and medium sized enterprises, and during the procurement process we will be working with potential prime contractors to explore how these opportunities can be made fully available to SMEs.”

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