Carillion / Amey joint venture wins £2.8Bn defence contracts

Horseguards building on Whitehall, London. Photo: Harland Quarrington/MOD
Horseguards building on Whitehall, London. Photo: Harland Quarrington/MOD

A joint venture comprising Carillion and Amey has won three contracts from the Defence Infrastructure Organisation (DIO) to maintain and upgrade defence infrastructure.


Worth up to £2.8Bn in total, these latest awards are for the Regional Prime Central, South East and South West contracts, making up the final part of the DIOs Next Generation Estate Contracts facilities management programme.


The joint venture was confirmed in May as winner of the National Housing Prime contract and the Scotland and Northern Ireland Regional Prime contract. Collectively the five Next Generation Estate contracts now secured by the firms have a potential value of £4.5Bn.


The Regional Prime Central contract is estimated by MoD to be worth £435M over five years, which the option of a further five year extension. This enlarged contract will see central and northern England, Wales and the existing Regional Prime Contract East all combined under one deal.


The firms will provide a wide range of hard facilities and asset management services at more than 150 sites, with the option to undertake capital works projects valued up to £3.93M.


The South East and South West Regional Prime contracts have an estimated value of £258M and £265M respectively, over the initial contract period of five years.


In the South East Amey and Carillion will provide these services at 60 key sites, including Sandhurst, Horseguards, HQ Land Andover and RAF Northolt, while in the South West they will do the same at 40 key sites, including RNAS Yeovilton, DE&S Abbey Wood, RAF Lyneham and Britannia Naval College.


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.”


Carillion chief executive Richard Howson said: “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.”


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