Key facts
Key facts
Overview
VIVO Defence Services, a 50/50 joint venture between Equans and Serco, has secured four major contracts, worth over £1 billion by UK Ministry of Defence (MOD) Defence Infrastructure Organisation (DIO).
The contracts will see Vivo provide asset and facilities management services for the UK Defence built estate and also repairs and maintenance work for service family accommodation.
Services Delivered
Built Estate – FDIS Contracts
Under the Future Defence Infrastructure Services (FDIS) programme, VIVO has been awarded two regional contracts covering the South West and Central regions of the UK, with a core value of around £900m over the initial seven-year period and the potential of additional project work that the Ministry of Defence (MoD) estimates is likely to be worth a further £2.5bn across the term.
VIVO will deliver services which will support the UK’s defence capability, maintaining the built estate across more than 200 sites and around 19,000 buildings. The core services include planned and reactive maintenance, as well as mandatory safety checks. The potential additional project work will range from small scale asset replacement and property refurbishments to large construction projects. Following a six-month mobilisation phase, the core work was scheduled to start in February 2022.
Service Family Accommodation – RAMS contracts
To support Service Family Accommodation (SFA), VIVO has also secured two Regional Accommodation Maintenance Service (RAMS) contracts which will see the JV take responsibility for improving the lived experience of service families across 27,000 homes in the South West and South East regions of the UK. This represents 60% of SFA’s overall estate.
The core value of the two RAMS contracts is estimated at £296m over an initial seven year period. Beyond the core fixed price contract for each region, there will be significant amounts of additional project work, which will be commissioned as required by the DIO. The MOD estimates that they are likely to be worth a further £514m.
VIVO is currently competing for seven further DIO contracts, some of which are under the same frameworks. Contract award announcements for these are expected to be made later this year.
Outcomes
- Management of 200+ Defence sites and 19,000 buildings
- Support and maintenance for 27,000 Service Family Accommodation properties
- Long-term contracts with a combined core value exceeding £1.2bn
- Additional project works projected to total £3bn+ across the programme
- Scheduled start of core delivery following a six-month mobilisation period
- Active competition for seven further DIO contracts, with awards expected later in the year
Our expertise
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