Ministry of Defence awards £155m Gibraltar infrastructure contract

Land May 9, 2022

MOD awards £155m Gibraltar infrastructure contract

The first of a new suite of contracts to provide key services for the UK Armed Forces on overseas Ministry of Defence (MOD) bases has been awarded.

The £155 million contract, which will provide maintenance work, repairs, servicing, and hard facilities management to the MOD’s estate in Gibraltar, has been awarded to Mitie by the Defence Infrastructure Organisation (DIO).

It is expected to directly sustain around 200 jobs in Gibraltar.

This is the first contract to be awarded under DIO’s new Overseas Prime Contracts (OPC) programme, which will also see further contracts come into force at Defence sites including Cyprus, Germany, the Falkland Islands and Ascension Island.

The contract is for an initial period of seven years and will come into service in the autumn. The new contracts have been developed taking into account recommendations for improvements to the current arrangements and will mean a better service for military personnel based overseas.

Greater alignment to current industry standards will mean increased collaboration between DIO and its suppliers and allow for services to be better tailored to the requirements of specific sites. A new, integrated software system will enable information to be shared more effectively.

The contracts have been designed to promote more efficient processes and the quicker delivery of high volume, lower value works, ensuring increased value for money. Performance targets will encourage a high standard of repairs and reduce the need for repeat visits.

DIO’s Chief Operating Officer David Brewer said: “DIO is committed to supporting people across the Armed Forces who depend on us to provide facilities and essential services which allow them to work safely and securely.

“This marks an important milestone in the OPC programme, as the first of the new contracts is awarded in Gibraltar.

“This new contract builds on the successes of existing hard facilities management arrangements while taking on board recommendations for additional services and improvements, which will improve the quality of life for people in Gibraltar.

“We look forward to working with Mitie to deliver for our Armed Forces overseas.”

Brian Talbot, Managing Director, Central Government & Defence, Mitie, said: “As proud supporters of the British Armed Forces, we are delighted to have been awarded the new Overseas Prime Contract for Gibraltar by the Defence Infrastructure Organisation.

“By providing these vital services, delivered by our exceptional colleagues and underpinned by our industry-leading technology, we look forward to working with the Armed Forces based in Gibraltar and supporting the smooth delivery of operations on site.”

The next OPC contract to be awarded will be for hard facilities management in Cyprus in early 2023.