The Defence Infrastructure Organisation (DIO) has awarded MoD contracts to VIVO Defence Services – the Serco and ENGIE joint venture – and Amey to upgrade service family accommodation (SFA) across England.
After winning DIO contracts to provide asset and FM services in the South West and Central regions earlier this month, VIVO has taken two more regional accommodation maintenance service (RAMS) contracts under lot 2B of the Future Defence Infrastructure Services (FDIS) programme – the largest FM procurement currently running across Europe.
The total value of VIVO’s two contracts is about £296 million over the initial seven-year term and the deal includes a further three one-year extension options. Beyond the core fixed-price contract for each region, there will be additional project work commissioned as required by the DIO. The MoD estimates that these tasks could be worth another £514 million over the initial seven-year period.
VIVO will be responsible for improving the living experience of service families in the South West and South East regions – the two largest regions to be awarded, covering more than 60 per cent of the overall SFA estate.
Under the South West contract, VIVO will maintain more than 14,000 homes at Salisbury Plain, Gosport, Bristol, Devon, and Cornwall, and 13,000 homes across Oxfordshire, Buckinghamshire, Hampshire, London, Kent and Essex in the South East region. Both contracts start in March 2022, after a mobilisation phase.
The RAMS contracts are focused on enhancing the life for service personnel and their families through maintenance, increased communication, and enhanced use of technology. The DIO collaborated with stakeholders including three service families federations to guarantee their needs were suitably addressed when deciding the scope of the contracts. They include the delivery of core services such as planned and reactive maintenance and mandatory safety checks.
VIVO has also pledged direct investment to modernise the service to better meet service family needs and plans to pilot ENGIE’s existing net-zero carbon retrofit programmes, which decarbonises and digitalises existing housing stock and estates.
It will also offer apprenticeships, work placements and graduate schemes and secondments for those leaving the services. Twenty per cent of vacant or new roles will also be allocated to candidates with a military background.
Colin Macpherson, divisional CEO for ENGIE in the UK & Ireland, said: “By implementing smart and modern home technology, we plan to take a more proactive approach to maintenance, while encouraging open dialogue with families to offer peace of mind for all involved.
“Military families face many unique challenges, including uncertainty and separation. That unsurprisingly leads to greater levels of stress and anxiety. We have had extensive conversations with the DIO and service families and understand just how important a safe, secure, and stable home environment can be. ENGIE and Serco are both proud signatories of the Armed Forces covenant and are wholly committed to delivering a service that will not only support service families but alleviate any unnecessary pressures.”
Paul McCarter, managing director of Serco’s Defence business, said: “VIVO combines Serco’s deep understanding of the UK’s Defence requirements and experience of the public sector with the housing and FM expertise of ENGIE.”
The venture is also vying for another seven DIO contracts, some under the same framework. Contract award announcements for these are expected to be made later in the year.
Amey has also secured two DIO contracts with the Defence Infrastructure Organisation worth £550 million to maintain homes of service personnel across the MoD’s Central and Northern regions.
These contracts will run for seven years too, with an option to extend for an additional three. In addition to the core housing maintenance services, the contracts will deliver improvement projects and refurbishment work to about 25,000 properties.
The award follows Amey’s maintenance works under National Housing Prime – procured under the Next Generation Estates contract in 2014. The group’s defence team will work with the DIO to provide enhanced services, as outlined within the FDIS requirement, through collaborative working and improved data management.
RAMS will support more than 500 jobs within Amey and its key supply chain partners in both the Central and Northern regions. New ways of working will provide opportunities for flexible employment, meaning members of the military community, parents, and carers will be able to access jobs. Amey said this would translate into more choice and flexibility for people living in SFA.
Craig McGilvray, managing director of Amey Secure Infrastructure, said: “We recognise the important role housing plays to military personnel and are committed to providing an enhanced service that not only improves living standards but contributes to thriving communities.
“Supporting and sustaining regional and local supply chain partners remains a core part of Amey’s agenda and we are pleased that our delivery model will support specialist contractors across Britain including Northern Ireland.”
Image credit | Amey