Defence: MoD deal creates allies

Contractors are lining up to chase a £1bn deal to build and maintain Ministry of Defence barracks — even before the contract is advertised in the European Journal, OJEC.

The deal — known as the Allenby and Connaught scheme — will see apartments built at army bases in Aldershot, Hampshire and Tidworth, Wiltshire.

The deal is so large some companies are teaming up — a Bovis Lend Lease spokesman confirmed his company would be joining with Amey in an effort to land the contract.

He said Bovis has done similar deals in the US with Actus, and has teamed up 'because of Amey's strong facilities management record'.

Amec and Balfour Beatty also look set to team up and Abbey Holford Rowe, HLM Architects and WS Atkins are also believed to be forming consortiums with contractors.

A Jarvis spokesman told TheFB that Jarvis is also looking at the deal.

'It's a big contract and we are interested', he said.

Mowlem said it is 'pretty certain we are going to go for it'.

Interserve has said it will look at the deal, and it is believed Carillion is also interested.

The new accommodation will follow the army-wide trend of a move from shared accommodation to single-bed, flat-like units with en-suite bathrooms.

It is understood that the barracks will be procured under the private finance initiative rather than the MoD's usual prime contracting route.

One contractor said he believes the MoD is 'keen to move quickly' and the tender documents should be released this month.

However, he said, because of the scope of the project, a preferred bidder may not be announced until October next year.

 The MoD also wants tenders for a prime contract for Catterick, North Yorkshire. The contracts is to include 590 single bedrooms with en-suite bathrooms, technical space, car parking, workshops and garages. The winner will run the base for at least three years.