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Amey and Carillion joint venture selected by the Defence Infrastructure Organisation for two Next Generation Estates contracts worth up to £1.7 billion including additional services and extensions

Press Release   •   May 12, 2014 14:36 BST

Leading UK public and regulated services provider Amey, together with its joint venture partner Carillion, has won the Scotland and Northern Ireland Regional Prime contract and re-secured the National Prime Housing contract potentially worth up to £1.7 billion in total.

These contracts form part of the Defence Infrastructure Organisation’s (DIO) Next Generation Estate Contracts programme to maintain and upgrade Defence infrastructure.

The Joint Venture between Amey and Carillion (33:67) has won the National Prime Housing contract which is estimated by MoD to be worth in the order of £625 million over the initial five-year contract period and can be extended by a further five years subject to approval.

Under this contract the Joint Venture will provide a wide range of hard facilities management services, including routine maintenance, occupancy management, furniture installation, energy efficiency services, statutory inspections and improvements for more than 49,000 military homes throughout the UK. This enlarged contract replaces the contract currently held by the Joint Venture under which it delivers similar services for military houses in England and Wales.

The Amey and Carillion (50:50) Joint Venture has also been awarded the Scotland and Northern Ireland Regional Prime contract which is estimated by MoD to be worth in the order of £150 million over the initial contract period of five years. This can also be extended by a further five years, subject to approval.

Under this contract, the Joint Venture will provide a wide range of hard facilities and asset management services across 30 key sites including RAF Lossiemouth, RAF Leuchars, Kinloss Barracks, HMS Caledonia and Kentigern House in Scotland, and Aldergrove Airfield, Thiepval Barracks and Kinnegar Logistics Base in Northern Ireland, together with the provision of new buildings. Hard facilities management services will include planned and reactive building fabric and mechanical and electrical engineering maintenance, together with utility efficiency services. The service delivery model has also been designed to support the UK Government’s objective of encouraging the use of Small and Medium-sized Enterprises.

Mel Ewell, Amey’s Chief Executive, said: “We are delighted that the DIO has selected the Joint Venture to deliver the Scotland and Northern Ireland, and National Housing Prime contracts. Working collaboratively we not only provide essential improvements to the defence estate, but will support the DIO in their drive to reduce carbon emissions through the introduction of sustainable best practice and innovation.”

Both Amey and Carillion will also use these new contracts to create further opportunities to demonstrate their commitment to the Armed Forces Corporate Covenant, which helps ex-service personnel find employment and supports the provision of Reservists.

Carillion Chief Executive, Richard Howson, said: “We are delighted that our Joint Venture has been selected for these major contracts. We look forward to building on the strong relationship we have developed with Defence Infrastructure Organisation and to working closely with DIO to deliver further improvements to the quality and energy efficiency of the Defence estate.”

Amey is a leading UK public and regulated services provider with over 21,000 employees.

Amey operates over 320 contracts, providing an unrivalled range of services including utilities, highways, waste management, rail, justice solutions, social housing and facilities management. Services are underpinned by our leading consulting and asset management capabilities, which allow us to offer stand-alone or integrated service solutions to a range of clients.

Amey is owned by Ferrovial. They are one of the world’s leading infrastructure management and investment companies. Ferrovial employs approximately 65,000 employees and operates in over 25 countries. Ferrovial’s activities focus on four business sectors construction, airports, toll roads and services.  Amey is part of the Services division.

Carillion

Carillion is a leading integrated support services company with a substantial portfolio of Public Private Partnership projects and extensive construction capabilities. The Group had annual revenue in 2013 of some £4.1 billion, employs around 40,000 people and operates across the UK, in the Middle East and Canada.

DIO

The Defence Infrastructure Organisation (DIO) plays a vital role in supporting the UK’s Armed Forces by building, maintaining and servicing what the men and women who serve our country need to live, work, train and deploy on operations.

DIO is part of the Ministry of Defence (MOD). It is responsible for managing and maintaining land and properties, as well as providing related support services, to meet the current and future needs of the MOD and personnel at home and abroad, and to support current operations.

Its work includes supporting operational units by providing and improving 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, and its heritage is protected, as well as achieving its environmental goals.