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MoD reopens £250m of Scottish construction work

14 Mar 13 The Defence Infrastructure Organisation (DIO) has reopened the industry competition for its arrangements to deliver construction projects up to £12m in value on the Scottish military estate.

Developed under the DIO Next Generation Estate Contracts (NGEC) programme, the Regional Capital Works Framework Scotland has an estimated value of up to £250m. It will include up to five framework contractors, and DIO will award projects individually by running mini-competitions in each instance.

DIO sought initial expressions of interest in this framework in 2011, along with another five UK regional frameworks. It was subsequently decided to put it on hold until after the Strategic Defence & Security Review (SDSR).

It is expected that the framework will now be awarded by mid-2014, running for an initial four-year period, with the potential to extend for up to three years. It will operate in parallel to the National Capital Works Framework for higher value and more complex projects worth up to £50m. Potential framework contractors will need to show a minimum turnover of £18m and recent experience of managing projects worth more than £5m.

DIO will host an industry day at Redford Barracks, Edinburgh, in April to give both potential framework contractors and supply chain businesses an overview of UK Defence, the NGEC programme and the scope of the Scotland framework. The event will also provide opportunities for supplier networking.

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NGEC programme head Steve Rice said: “Defence rebasing is expected to generate significant changes to estate and infrastructure – including on some Scottish military bases – which will generate new construction requirements. In these financially challenging times we believe this framework model will maximise value for every pound spent on construction, while ensuring that design and build opportunities remain open for a wider range of national and local businesses."

NGEC Capital Works Frameworks project manager Jon Wooden added: “We are determined to identify companies capable of delivering Defence construction projects for Scotland flexibly, sustainably and cost-effectively. We are also keen that smaller and local enterprises with innovative solutions get involved in networking at our industry day.”

A contract notice has been issued to the Official Journal of the European Union Tender Electronic Daily (TED) and the Defence Contracts Online (DCO) websites. It provides further information on the framework, and explains the arrangements for submitting expressions of interest (EOIs), and for potential bidders and supply chain companies to register to attend the industry day. The period for all potential bidders to submit EOIs for this contract ends at 1200 hours on 12 April 2013.

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