£50,000,000

Location

Andover

Description

£50,000,000

Total Quantity or Scope

Building and facilities management services. Building and Facilities Management Services – Project Allenby Connaught PFI (Salisbury Plain Training Area and Aldershot)

Award Detail

CPV Codes

• 79993000 - Building and facilities management services

Indicators

Legal Justification

The UK MoD believes that it may modify the PAC PFI Contract with Aspire Defence Ltd for the retention of the capability for potential additional works and services in accordance with Regulation 72(1)(b) and Regulation 72(1)(c) of the Public Contracts Regulations 2015. Additional services have become necessary due to Project EPIC, which includes the retention of the ADL capability to project manage the remodeling or construction of new assets on the PAC PFI estate, currently managed under the PAC PFI Contract with Aspire Defence Ltd. At the time of the award of the original PAC PFI Contract in 2006 and the Army Basing Amendment in 2016, there was no foreseeable need to further remodel or construct new assets to support Army requirements. This capability is now required to be maintained. Whilst any potential future remodeling or construction is under way, the sites must remain operational to minimise disruption to Army effectiveness. ADL is already contractually responsible for the effective management of the PAC sites. A change of contractor cannot be made for technical or economic reasons due to the interoperability with existing installations procured under the PFI. Delivery of the Project EPIC capability through a new contractor, separate from the PAC PFI Contract, would cause significant inconvenience, and substantial duplication of costs, to the UK MoD due to the following technical and economic reasons: — creation of ‘interface risk’ involving the transfer of the risk and associated costs to the UK MoD in respect of availability of site and facilities and damage to the estate; — potential for disruption and delay to future Project EPIC works – resulting in the loss of Army capability; — loss of commonality of any new or remodeled assets relative to the existing estate, leading to higher ongoing support costs; — restricted access to site and onsite support and ability to manage ‘rattle’. The amendment to the PAC PFI Contract does not exceed 50% of the value of the original contract. Further, the need for the modification of the PAC PFI Contract has been brought about by circumstances which the UK MoD could not have foreseen. At the time of the award of the original PAC PFI Contract in 2006, or the Army Basing Programme Amendment in 2016, there was no foreseeable need to maintain the contractor’s capability to deliver future works. (ii) the modification does not alter the overall nature of the PAC PFI Contract and (iii) the increase in price does not exceed 50% of the value of the original contract. It should be noted that if future construction or remodeling projects arise, there will be significant sub-contract opportunities for the construction elements that may arise as a result of Project EPIC. These will be managed by ADL under competitive arrangements.

Other Information

The scope of the Project Allenby Connaught (“PAC”) PFI, including the Army Basing Programme Amendment, covers the provision of living, dining, office, medical, training and technical facilities and the subsequent service provision such as through life maintenance of facilities, catering, cleaning, stores and transport services. The provision of Service Families Accommodation (“SFA”) is excluded. The Project EPIC requirement covers the replacement, after its conclusion, of the Army Basing Programme Amendment as the means to deliver remodeled or additionally constructed assets to the estate, with a new set of terms and conditions to provide this capability on an ongoing basis, during a period of uncertain future requirements. The Management, Service Provision and Construction of the Sites is currently provided by Aspire Defence Limited (“ADL”) through the PAC PFI Contract. There is currently no confirmed pipeline of work or requirement to provide additionally constructed assets on the PFI estate, but the Ministry of Defence (“MOD”) wishes for ADL to retain the capability to either construct new assets or remodel existing PFI assets, through to the end of the PFI contract in 2041. This capability and contract amendment has been named “Project EPIC”. Under Project EPIC, ADL will retain a number of existing staff, who will be responsible for project managing any potential future construction project requirements. Any potential new or remodeled assets will then be enrolled or returned to the PFI contract, for facilities management until the PFI conclusion in 2041. The DIO Project Allenby Connaught Team, part of the UK MoD, intends to negotiate with Aspire Defence Ltd and award an amendment to the PAC PFI Contract for the Project EPIC requirement, subject to negotiation and gaining the necessary internal approvals. The UK MoD believes that it may modify the PAC PFI Contract with Aspire Defence Ltd for the retention of the capability for potential additional works and services in accordance with Regulation 72(1)(b) and Regulation 72(1)(c) of the Public Contracts Regulations 2015. Additional services have become necessary due to Project EPIC, which includes the retention of the ADL capability to project manage the remodeling or construction of new assets on the PAC PFI estate, currently managed under the PAC PFI Contract with Aspire Defence Ltd. At the time of the award of the original PAC PFI Contract in 2006 and the Army Basing Amendment in 2016, there was no foreseeable need to further remodel or construct new assets to support Army requirements. This capability is now required to be maintained. Whilst any potential future remodeling or construction is under way, the sites must remain operational to minimise disruption to Army effectiveness. ADL is already contractually responsible for the effective management of the PAC sites. A change of contractor cannot be made for technical or economic reasons due to the interoperability with existing installations procured under the PFI. Delivery of the Project EPIC capability through a new contractor, separate from the PAC PFI Contract, would cause significant inconvenience, and substantial duplication of costs, to the UK MoD due to the following technical and economic reasons: — creation of ‘interface risk’ involving the transfer of the risk and associated costs to the UK MoD in respect of availability of site and facilities and damage to the estate; — potential for disruption and delay to future Project EPIC works – resulting in the loss of Army capability; — loss of commonality of any new or remodeled assets relative to the existing estate, leading to higher ongoing support costs; — restricted access to site and onsite support and ability to manage ‘rattle’. The amendment to the PAC PFI Contract does not exceed 50% of the value of the original contract. Further, the need for the modification of the PAC PFI Contract has been brought about by circumstances which the UK MoD could