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DE&S awards private sector contracts

Published on: 5 Nov 2014

Private sector providers have been offered contracts that will support the transformation of the Ministry of Defence's (MoD's) Defence Equipment and Support (DE&S) arm.

These firms will change the way DE&S manages the buying and support of defence equipment, helping to deliver the MoD's ten-year, £164 billion equipment plan.

The contract for project delivery in the Land and Joint Enabler areas has been offered to CH2M Hill, while Bechtel has been offered the contract for the Air and Fleet areas. PwC is to deliver the human resources deal, if it accepts the offer. 

Managed service provider (MSP) contracts have been introduced to help drive changes in DE&S by providing skilled personnel who have the relevant expertise and past experience to transform a large organisation.

Complementing the skills of the existing workforce, the private-sector firms will provide the support needed for DE&S to reach its goal of becoming a 'best in class' acquisition organisation.

MSPs will provide strategic support and assistance in specific areas of the DE&S business. This round of awards relates to the areas of 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.

"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."

Mr Dunne added that the contracts will also result in significant savings for the taxpayer.

A mandatory commercial stand-still period has now been triggered, which will last for at least ten calendar days. Contract signature will take place subject to the successful conclusion of this period.

DE&S operates as an arms-length body of the MoD and has the freedom to make decisions on pay, rules for promotion and grading structures.