Outsourcer Mitie snaps up £650m defence contract
Outsourcer Mitie has today won a £646m contract to deliver building and maintenance services for the Ministry of Defence’s (MoD) sites across Scotland and Northern Ireland.
The seven-year contract covers 4,400 buildings over 91 sites, including both historic buildings such as Edinburgh Castle and active military bases.
The MoD will have the option of extending the deal for three more years if the FTSE 250 firm delivers a satisfactory service.
Shares in the Southwark-headquartered firm fell 1.5 per cent today.
Earlier today fellow service providers Serco and Engie said that their joint venture, Vivo, had won a £900m contract to deliver the same services across south-west and central England.
And French construction group Vinci won the final contract, worth £423m, to provide facilities management across the south-east.
The Future Defence Infrastructure Services (FDIS) contracts will see the government boost its investment into the UK’s sometimes crumbling military infrastructure.
Simon Venn, Mitie’s chief government and strategy officer said: “As a British business and proud supporter of the United Kingdom’s Armed Forces, we are delighted to have been chosen by the Defence Infrastructure Organisation to deliver maintenance services for sites across Scotland and Northern Ireland.
“The Armed Forces play a crucial role in keeping Britain safe, so we’re proud to serve our Military by ensuring that these sites are run in the most efficient way possible so that our service men and women have the infrastructure and support they deserve and need.”
David Brewer, chief operating officer of the Defence Infrastructure Organisation (DIO), which awarded the contracts, said:
“I am pleased to announce Mitie as the successful supplier in Scotland and Northern Ireland. I look forward to working with industry leading organisations to continue the work we are doing to improve the service we deliver for our Servicemen and women.
“The Built Estate contracts will create and sustain thousands of jobs and protect local supply chains throughout the UK.”