The Ministry of Defence鈥檚 estate arm has delayed by a further year billions of pounds worth of construction contracts

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Ministry of defence

The Ministry of Defence鈥檚 estate arm has delayed by a further year billions of pounds worth of construction contracts, with the vast bulk of the work now to be awarded in 2014.

The move comes after 好色先生TV that the MoD had placed its entire New Generation Estate Contracts under review as it moved to from the private sector to manage its estates programme.

Originally the suite of contracts - worth as much as 拢9bn over 10 years (see table below) - were scheduled to be let in 2012.

This was then delayed after the procurement was placed under review, with the Defence Infrastructure Organisation 鈥 the MoD estate arm 鈥 indicating that the contracts, including the 拢1.5bn National Housing Prime contract to provide repairs and maintenance to the more than 49,000 UK military homes, would be awarded before April 2013.

However, that deadline has now slipped again, with the DIO confirming that all but one of the contracts will now not be awarded until 2014.

The first capital work framework 鈥 for East Midlands and Eastern England, worth up to 拢250m 鈥 will be awarded in August 2013. However the DIO has yet to confirm dates for the procurement for the remaining five regional frameworks, which are thought to be worth up to 拢250m each.

It said the 拢1.5bn National Housing Prime contract, which already has a shortlist of bidders - comprising Kier and Turners Facilities Management; Carillion and Enterprise Managed Services; and Babcock - would not be awarded until March 2014.

The 拢950m National Training Estate contract would also be awarded in March 2014, the DIO said, alongside regional prime contracts for the south east, south west and central regions, which together are worth up to 拢4.35bn.  The 拢350m prime contract for Scotland and Northern Ireland will be awarded in January 2014.

However, the 拢400m National Capital Works framework, which has ten short-listed bidders, would not be awarded until May 2014, the DIO said.

Steve Rice, head of NGEC, said: 鈥淲e now have in place formal approval to take forward this major procurement programme, and I am encouraged by the enthusiasm of industry to be involved in delivering these new contracts.

鈥淲e all recognise the importance of the Next Generation Estate Contracts for our military customers, and we will continue to work with our current contractors to ensure that existing service levels are maintained right up to the new arrangements coming into service.鈥

NGEC revised programme

Contract (value)AwardIn-service
Regional Prime Scotland & Northern Ireland (up to 拢350m)24/01/1421/07/14
National Housing Prime (up to 拢1.5bn)05/03/1405/11/14
National Training Estate Prime (up to 拢950m)05/03/1422/09/14
Regional Prime South East (up to 拢1.2bn)17/03/1430/09/14
Regional Prime South West (up to 拢1.35bn)17/03/1430/09/14
Regional Prime Central (up to 拢1.8bn)17/03/1430/09/14
Regional Capital Works Framework East Midlands & Eastern England (up to 拢250m)16/08/13-
National Capital Works Framework (up to 拢400m)18/05/14-
Five other regional frameworks (up to 拢1.25bn)TBC-
Total value = up to 拢9bn