MoD promises clarity for suppliers during overhaul

22 March 2011
MoD looks to suppliers to help make its estate fit for the future 


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Property tool launched to drive public sector savings

 

Defence deals to be more open to small businesses

22 March 2011 | Lindsay Clark

Defence Estates (DE) is to hold events to help potential vendors understand changes to the organisation and the way it will contract in the future.

With DE, which manages a £15.3 billion property portfolio, set to become part of the Defence Infrastructure Organisation (DIO) from the start of next month, suppliers need to be assured of continuity in the creation of the DE’s Next Generation Estate Contracts (NGEC), said Steve Rice, head of the NGEC programme.

“During this period of significant change across government, sound engagement and communication with industry are essential to the procurement process,” he said.

An online directory, listing details of potential bidders to encourage collaboration between partners in the supply chain, has also been set up.

The Ministryof Defence will hold an industry day for each prime contract, and one for each national and each regional capital works framework – worth £50 million and £12 million each respectively, after the expressions of interest stage of the tender. Some subcontractors involved during this phase will also be invited.

“I am determined that through these industry days we should be setting out our requirements clearly and openly, to ensure potential bidders get the best possible chance to demonstrate their merits,” Rice said.

Set to start from 2013, the NGECs are expected to support maintenance, capital works and services to around 49,000 family homes and 45,000 other buildings on the defence estate.

Meanwhile, the DIO, which will ultimately take charge of the NGECs, is expected to make an overall saving of £1.2 billion in its first four years of operation.

 

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