A unit of the UK's Ministry of Defence (MoD), the Defence Infrastructure Organisation (DIO), has selected a joint venture between Carillion and Amey for two housing contracts worth approximately £1.7bn.
The £625m National Prime Housing contract is the first of the two contracts, while the £150m Scotland and Northern Ireland Regional Prime contract is the second. Both contracts are set for an initial five years but can be extended by five more years, subject to approval.
The contracts are part of DIO's next generation estate contracts programme to maintain and upgrade defence infrastructure.
During the National Prime Housing section, Carillion will own 67% of the joint venture, while Amey will have a 33% share. However, during the Scotland and Northern Ireland Regional Prime portion, Carillion and Amey will each hold a 50% share in the joint venture.
For the National Prime Housing contract, the joint venture will provide a wide range of hard facilities management services, such as routine maintenance, occupancy management, furniture installation, energy efficiency services, statutory inspections and improvements for more than 49,000 military homes throughout the UK.
Prior to the current contract, the joint venture also delivered similar services for military houses in England and Wales.
For the Scotland and Northern Ireland Regional Prime contract, the joint venture will provide a wide range of hard facilities and asset management services, including planned and reactive building fabric, mechanical and electrical engineering maintenance, and utility efficiency services.
These services will be delivered across 30 important sites in the UK, including RAF Lossiemouth and RAF Leuchars in Scotland, and Aldergrove Airfield and Kinnegar Logistics Base in Northern Ireland.
Carillion CEO Richard Howson said the company looks forward to building on the strong relationship they have developed with DIO and to working closely with them to deliver further improvements to the quality and energy efficiency of the defence estate.
"DIO set industry the challenge of providing added value to the military estate and the offers we submitted have been recognised as generating demonstrable benefits in this regard, including the use of market leading customer feedback systems," Howson said.