Joint venture ‘VIVO’ awarded Defence Infrastructure contracts

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VIVO Defence Services, infrastructure

VIVO Defence Services (VIVO), a collaboration between Serco and ENGIE, has been awarded contracts to provide asset and facilities management services for the UK Defence built estate by the Defence Infrastructure Organisation (DIO)

VIVO has been awarded contracts for two of the four regions being tendered under Lot 3 of the Future Defence Infrastructure Services (FDIS) programme.

The contracts are estimated at a base value of £900m and a potential total value of c.£3.4bn.

In addition to the core fixed-price contract for each region, there will be significant amounts of additional project work, which will be commissioned as required by the DIO, and while the future value of these projects is uncertain, the Ministry of Defence (MoD) estimates that they are likely to be worth a further £2.5bn over the initial seven year term.

VIVO will be responsible for providing services in the South West and Central regions of the UK, the largest two regions of the four that were competed, and which represent around 2/3rds of the MoD’s estimated value of Lot 3 of the Future Defence Infrastructure Services contracts.

The total core contract value to VIVO for the two regions is estimated to be around £900m over the initial seven-year period.

The services VIVO will deliver will support the UK’s defence capability, maintaining the built estate across more than 200 sites and around 19,000 buildings.

The core services include planned and reactive maintenance, as well as mandatory safety checks.

Beyond technical services

Sam Hockman, divisional CEO for ENGIE in the UK & Ireland, said: “VIVO has been specifically formed to leverage our combined strengths to meet the unique and varying needs of DIO and their many stakeholders.

“Beyond technical services, it will also bring the latest digital innovation and smart building technology to greatly increase the efficiency and performance of buildings. Our solution has been designed to enhance customer experience, lower operational costs and ultimately reduce carbon emissions.”

Paul McCarter, managing director of Serco’s defence business, said: “We are delighted that VIVO, our joint venture with ENGIE, has been awarded these two important contracts to look after the MOD estate in the South West and Central regions of the UK.

“Our team will be working to maintain a total of around 19,000 buildings on 230 sites across the two regions and we understand the importance of these facilities to the UK Armed Forces’ operational capability.

“Serco has been supporting the UK Armed Forces for over 50 years and this experience has given us a deep understanding of their requirements.

“We are grateful to the MOD and the Defence Infrastructure Organisation for the trust they are placing in us and we look forward to working with them.”

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