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MoD seeks contractor for £1.5bn housing deal

The Ministry of Defence has invited bids for a UK-wide military housing contract worth up to £1.5 billion over 10 years.

The single contract is expected to be awarded in late 2012 and will provide all housing-related services to the armed forces and their families from 2013, 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.

Under the contract, repairs and maintenance work for more than 49,000 UK military homes will be provided, as well as grounds maintenance and housing construction projects worth up to £3.93 million.

The contract value is likely to top £1.5 billion over 10 years, depending on which services are included and whether the contract is extended.

It forms part of the wider Next Generation Estate Contracts – a suite of ongoing deals for the UK defence estate which includes four regional prime contracts for facilities management, one national and six regional capital works frameworks for construction projects, a national housing prime contract and a new contract for the defence training estate.

David Olney, deputy chief executive of Defence Estates said: “Our Armed Forces and their families deserve a good standard of accommodation. This contract is designed to ensure that we get the best possible solutions with the resources available.”

The contract tender notice for the contract was issued to the OJEU and the Defence Contract Bulletin yesterday.

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