The Defence Infrastructure Organisation (DIO) has awarded a £170
million extension to its Regional Prime Contract (RPC) in the South
West of England to Babcock International Group (Babcock).
Delivered through the Debut joint venture partnership, the RPC
South West contract delivers estate management services to almost
60 establishments, which encompasses some 200 separate parcels of
land, within the South West region. Within these sites there are
approximately 9,000 assets that can vary from barrack blocks,
galleys and offices to infrastructure, sports pitches and
reservoirs.
The original seven-year contract, designed to provide improved
value for money in the maintenance of the Defence estate through a
more collaborative way of working, made provision for a three-year
extension. The extension will bridge the gap between the expiry
date of the existing contract and the establishment of new estate
contracting arrangements being developed through DIO's Next
Generation Estates Contracts (NGEC) programme. These are
anticipated to be in place between 2013 and 2014.
The new agreement is valued at approximately £170 million base
contract, over a three-year period, and contains revised terms to
ensure flexibility for changing Defence requirements. The contract
also allows for injections of funding from the MOD for additional
specified works.
The contract extension was negotiated under Programme PROMPTU,
which introduces new service levels to allow funding to be targeted
on the most important assets and maintenance tasks. Programme
PROMPTU provides a safe and legal estate, meeting statutory and
regulated requirements, whilst supporting operational outputs.
The contract will operate under a new incentivisation mechanism
Performance Related Deferred Profit (PRDP), where DIO will have the
opportunity to retain profit for failure to meet agreed operational
delivery targets, which will be reinvested into the defence
estate.
David Plester, Managing Director, of Babcock's Infrastructure
business, said, "I am delighted that we have been awarded the
contract extension for the Regional Prime Contract South West. The
innovative work carried out by the RPC SW Babcock team on the
development of the revised service levels during the contract
extension negotiations has been further developed by the Programme
PROMPTU team and rolled out across the Prime Contracts."
Picture Credit: Debut's Senior Management team
About the RPC SW
The Regional Prime Contract South West (RPCSW) was awarded to Debut
in March 2004 and was the second of five regional contracts to be
let under the Prime Contracting initiative by Defence Estates. The
contract covers estate management services for almost 60
establishments, which encompasses some 200 separate parcels of
land, within the South West region. Within these sites there are
approximately 9,000 assets that can vary from barrack blocks,
galleys and offices to infrastructure, sports pitches and
reservoirs. The seven-year contract includes a framework
arrangement for the provision of design and construction of new
projects across the estate as well as facilities management
services across a broad property portfolio including airfields and
training establishments.
In addition to the Regional Prime Contracts in the South West
and East, Babcock is also successfully managing the Functional
Prime Contract to build, refurbish and maintain Single Living
Accommodation for HM Armed Forces (Project SLAM) through the Debut
Joint Venture Partnership.
Babcock also delivers Total Facilities Management Services at
several sites in the Bath and Bristol area, through the Regional
Prime Contract South West, and has recently extended delivery to an
additional site in the Taunton area.
About Defence Infrastructure Organisation (DIO)
DIO is part of the Ministry of Defence (MOD). It is responsible for
managing and maintaining land and properties to meet the current
and future needs of the MOD and personnel at home and abroad, and
to support current operations.
Its work includes providing, supporting and improving:
operational units; single living and service family accommodation;
training areas and historic military sites. DIO actively manages
these to ensure the needs of Defence are met, value for money is
achieved, heritage is protected and environmental goals
achieved.
DIO was formed on 1 April 2011 when the former Defence Estates
(DE) organisation was brought together with other property and
infrastructure functions within department to form a single
organisation. DIO manages the MOD's property infrastructure and
ensures strategic management of the Defence estate as a whole.