§ The Parliamentary Under-Secretary of State for Defence (Mr. Ivor Caplin)
The Ministry of Defence has undertaken to make significant improvements to the defence estate through a restructuring of the service and construction delivery mechanisms. Regional prime contracting is a key element of that policy for which the South West region represents the second of five regional contracts. The initiative aims to provide a better quality of service and greater value for money through a suitably incentivised contract awarded on Smart Procurement principles that encourages innovation and efficiency.
I am pleased to tell the House that the assessment phase is now complete. Revised bids have been received from three consortia and the bids have been evaluated against detailed criteria. The preferred bidder has been identified as Debut Services Ltd, a consortium of Bovis Lend Lease and Babcock Services Group International.
The South West regional prime contract will provide for capital works, property maintenance and facilities management services throughout the MOD's estate in South West England over the next seven years. The value of this contract is likely to be in excess of £500 million. It is expected that contract award will take place in spring next year.