Carillion/Amey JV wins £2.8bn MoD Contracts from UK Government

A Carillion and Amey joint venture has won three contracts from the British government worth up to £2.8bn ($4.77bn) to maintain and upgrade defence infrastructure.

The three contracts form the final part of the Next Generation Estate Contracts programme, and follows the joint venture’s awarding in May of the National Housing Prime contract and the Scotland and Northern Ireland Regional Prime contract. The five contracts combined have a total potential value of £4.5bn.

Facilities management/construction services giant Carillion and support service provider Amey will provide support services including electrical engineering maintenance and utility efficiency services at more than 150 sites including RAF Cranwell, RAF Valley and MoD Stafford.

The MoD estimates the latest regional prime central contract to be worth £435 million over the initial five years, with a possible extension for a further five years.

The joint venture has also been awarded the South East and South West Regional Prime contracts worth an estimated £258m and £265m respectively over the five-year initial contract period.

The South East contract will provide hard facilities and asset management services at 60 key sites, including Sandhurst, Horse Guards, HQ Land Andover and RAF Northolt.

The South West contract will provide hard facilities and asset management services at 40 key sites, including RNAS Yeovilton, DE&S Abbey Wood, RAF Lyneham and Britannia Naval College.

Carillion chief executive Richard Howson said: Carillion Chief Executive, Richard Howson, said: “We are delighted that our joint ventures have signed these three 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 across the whole of the UK.

"DIO set industry the challenge of providing added value to the military estate and by awarding us these five contracts providing UK wide coverage the offers we submitted have been recognised as generating demonstrable benefits in this regard, including the use of market leading customer feedback systems."

Amey Chief Executive Mel Ewell said: “Securing the Regional Prime contracts across the whole of UK is great news for the business and testament to the strength of the partnership with Carillion.

“This recent win allows us to add value by expanding the service, as well as sharing best practice and driving efficient ways of working across the defence estate.”