Up to £600m worth of work expected to be let by the MOD this year will not go ahead. The government department has put it £5bn construction and facilities management programme under review Building reported.
A spokesperson for the MoD’s real estate arm the Defence Infrastructure Organisation [DIO] told the magazine that the procurement programme for a suite of contracts worth £500-600m each year for 10 years was now “under review” with no contracts to be let in 2012 as originally scheduled.
The spokesperson confirmed the review was across both the construction and facilities management contracts in the so-called suite of Next Generation Estates Contracts [NGEC] – including those that already have shortlisted bidders.
He told the magazine: “The contract award for the first tranche will be no earlier than 2013. Since the NGEC timetable was published in August 2010 there have been a number of emerging factors that have subsequently impacted on the procurement schedule.”
That means the £1.5bn National Housing Prime contract to provide repairs and maintenance to the more than 49,000 UK military homes will not now be let this year as planned. The MoD invited bids for the contract in February 2011 and in August announced three bidders had been shortlisted: Kier and Turners Facilities Management; Carillion and Enterprise Managed Services; and Babcock.
MOD and NHS Estates in shake up:
The DOE / PSA were the main body managing MOD provisions, their level of control financially was excellent. Since other sources have been appointed, everything has blown out of proportion. Priority is required else where “Not” London as the level of properties that are wasted else where is a sheer disgrace in squandering Tax Payers Money. The land with all the provisions offers benfits to other sources where prospects will benefit. This is why St Athan which was the fifth biggest combined Military base during wartime in Europe should have been accepted for the Military Training school, with its Facilities Internally, Underground and Externally. The surplus Land accompanying the ex-RAF base is exceptional with full provisons already inset.