The Ministry of Defence is preparing to reshape one of the UK’s largest public sector property services programmes, with plans to split its next-generation military housing maintenance contracts into separate specialist packages worth a combined £6.6 billion.
The Defence Infrastructure Organisation (DIO), which manages the Ministry of Defence’s extensive estate, has launched a market engagement exercise to gather industry feedback ahead of procuring the new Service Family Accommodation (SFA) contracts.
The proposed strategy marks a significant departure from the current procurement model. Rather than bundling all maintenance activities into a single contract, the DIO is considering separating planned maintenance and capital regeneration works from day-to-day responsive repairs and maintenance. The move is intended to create greater competition, encourage specialist expertise and provide improved opportunities for small and medium-sized enterprises (SMEs) to participate in the delivery of services.
The new contracts will cover the maintenance of military family homes across the UK, including responsive repairs, planned refurbishment programmes, capital improvement works, statutory compliance services and grounds maintenance. Together, the programme represents one of the largest long-term property maintenance opportunities currently being prepared within the public sector.
For the construction, facilities management and property services industries, the revised procurement approach could significantly broaden the supply chain, allowing contractors with specialist capabilities in refurbishment, planned maintenance, compliance and building services to compete for dedicated workstreams.
The DIO is currently seeking industry feedback on a range of issues, including contract structure, procurement routes, pricing mechanisms, lotting arrangements and preferred forms of contract before finalising its strategy.
The proposed contracts are expected to commence in March 2029 and run until February 2036, with options to extend until February 2039, creating a potential 10-year programme of works that will provide long-term certainty for successful delivery partners.
A series of supplier engagement activities has already been scheduled, including online briefing events later this month, enabling prospective bidders to contribute to the development of the procurement model before formal competition begins.
The preliminary market engagement will help shape the final procurement strategy, with questionnaires due to be submitted by the end of July. Interested organisations have until October to participate in the wider engagement process, while the formal procurement is expected to commence in early 2027.
The review reflects the Ministry of Defence’s wider ambition to modernise the management of its residential estate, improve service delivery for military families and create a more flexible procurement model capable of delivering better value, increased innovation and stronger collaboration across the UK’s construction, maintenance and property services sectors.
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