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18 January 2019
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The procurement plan outlines projects for the next five years © Shutterstock

8 November 2018 | Herpreet Kaur Grewal 

The Ministry of Defence (MoD) has announced plans to modernise its estate and establish a broader and more diverse supply base.


The Defence Infrastructure Organisation’s (DIO) new procurement plan outlines a programme of major projects and contracts for the next five financial years.


This includes work to construct new buildings, such as housing and accommodation, the refurbishment of current facilities, as well as services such as catering, waste management and cleaning.


The plan also sets out ambitions to establish a broader and more diverse supply base, including doing more business with small and medium-size enterprises (SMEs).


Currently, around 75 per cent of spending on maintenance at defence sites goes directly or indirectly to SMEs, and further diversifying the supply base will help to build resilience into projects and provide more opportunities for smaller companies to work on key defence projects.


By listing all the major projects and contracts, the procurement plan will make it easier for existing and potential suppliers to plan ahead by offering advice on bidding for this work and greater transparency on working with the MoD.


These measures will particularly help small businesses, which don’t always have the skills and prior experience of working with the MoD in such areas.


Opportunities outlined in the procurement plan include the £4billion Defence Estate Optimisation Programme, the Future Defence Infrastructure Services contracts – which will provide facilities management across the UK’s military bases – and the £1.3 billion Clyde Infrastructure Programme.


The plan also details several prominent works that demonstrate the DIO’s key role in supporting defence throughout the UK. These include essential maintenance work worth £568 million to support nuclear infrastructure capability at HMNB Clyde, as well as a £58 million investment in a modern submarine training facility at the base.


Alongside this, there are plans for an £8 million investment in Bovington Camp to support the AJAX armoured vehicles that will enter service in 2020.


Jacqui Rock, DIO commercial director, said: “The procurement plan will help achieve the goals set out in our first ever commercial strategy. This set out our vision for how we do business and how we will work effectively with our suppliers.”


The procurement plan also sets out how the DIO can deliver social and economic benefits throughout its supply chain by working to contribute to the government’s aim of recruiting 20,000 apprentices through construction procurement and promoting sustainability through its supply chain.


The DIO has vowed that by 2020 it will have reduced greenhouse gas emissions by 30 per cent, and effected a 30 per cent reduction in domestic business flights, a 50 per cent reduction in paper used and cut waste going to the landfill to less than 10 per cent.


The full DIO Procurement Plan can be found here


 The full DIO Commercial Strategy can be found here