Two of the government’s largest estates are undergoing radical shake ups, which is delaying the awarding of contracts. The Ministry of Defence’s move to bring on board a private sector partner to manage its estate is the “key reason” for placing the procurement of up to £5bn worth of construction contracts on hold, Building reported.
The MoD’s property arm, the Defence Infrastructure Organisation (DIO), has placed its entire New Generation Estate Contract (NGEC) procurement “under review”, meaning no contracts will be let this year. A source told the magazine said the delay had been prompted by the organisation’s decision to bring a private sector partner in to manage the defence estate, worth nearly £20bn and including about 4,000 sites. Firms in the frame to run the estate include big names such as Serco, Capita Symonds, Babcock and Sodexo.
The Department of Health meanwhile is planning to set up a new property company to manage the NHS primary care trust estate, reported Construction News. This will take over buildings such as community hospitals and offices once the Primary Care Trusts are shut down. They are due to be abolished in 2013.
The DOE/PSA were the main body managing MOD provisions, their level of control financially was excellent. Since other sources have been appointed, everything has blown out of proportion. Priority is required else where “Not” London as the level of properties that are wasted else where is a sheer disgrace in squandering Tax Payers Money. The land with all the provisions offers benfits to other sources where prospects will benefit. This is why St Athan should have been accepted for the Military Training school, with its Facilities Internally, Underground and Externally. The surplus Land accompanying the ex-RAF base is exceptional with full provisons already inset.