UK MOD Offers Managed Service Provider Contracts

The UK MOD has offered a set of managed service provider contracts to provide private-sector expertise to support the transformation of DE&S.

Defence Equipment and Support (DE&S) buys and supports all the equipment used by the armed forces.

Contractors will work alongside existing DE&S staff to help change they way DE&S manages the buying and support of defence equipment, and helps deliver the MOD’s 10-year £164 billion equipment plan.

The procurement of these tailored private sector skills will complement existing in-house expertise, and provide the external support required to ensure that DE&S can reach its goal of becoming a ‘best in class’ acquisition organisation.

DE&S matches the 4 ‘domain’ areas of activity within the armed forces, which oversee the majority of its project and programme procurement.

CH2M Hill has been offered the contract for project delivery in the Land and Joint Enabler areas, with Bechtel offered the contract for the Air and Fleet areas. The human resources contract has been offered to PwC.

The managed service provider (MSP) contracts are being brought in to drive the DE&S transformation programme, by providing skilled personnel who have the expertise and past experience in implementing transformational change in organisations as large and complex as DE&S.

Once contracts are signed, the MSPs will provide strategic support and assistance in specific areas of the DE&S business – in this instance – project delivery and human resources over a defined period.

Minister for Defence Equipment, Technology and Support Philip Dunne said:

The contracts we have offered to CH2M Hill, Bechtel and PwC represent a key milestone in the work to transform DE&S into a higher performing project delivery organisation.

Once their work gets underway, we can expect the MSPs to provide DE&S with some of the best private sector skills available to improve even further our ability to procure defence equipment and support as cost effectively as possible.

He concluded:

It is important that we have the right expertise to help deliver this transformation to the way we procure defence capability.

Today’s landmark will help DE&S to provide better value for money for taxpayers, and ensure that the Armed Forces have the best possible support.

The offer of contracts triggered a mandatory commercial stand-still period, which will last for at least 10 calendar days.

Subject to the successful conclusion of this period, contract signature will take place.

Press release, Image: UK Navy