MoD awards £155m Gib services contract to Mitie

The UK Defence Infrastructure Organisation has awarded a £155m contract to UK-based Mitie for services in Ministry of Defence facilities in Gibraltar, in a move that will directly sustain 200 jobs on the Rock.

The contract will provide maintenance work, repairs, servicing, and hard facilities management to the MoD's estate in Gibraltar.

There are no redundancies expected in the current workforce as a result of the new contract, which is the first of a new suite of agreements to provide key services for the UK Armed Forces on overseas MoD bases.

The Gibraltar contract is for an initial period of seven years and will come into service in the autumn.

“DIO is committed to supporting people across the Armed Forces who depend on us to provide facilities and essential services which allow them to work safely and securely,” said the DIO’s Chief Operating Officer, David Brewer.

“This marks an important milestone in the OPC programme, as the first of the new contracts is awarded in Gibraltar.”

“This new contract builds on the successes of existing hard facilities management arrangements while taking on board recommendations for additional services and improvements, which will improve the quality of life for people in Gibraltar.”

“We look forward to working with Mitie to deliver for our Armed Forces overseas.”

The announced was welcomed by Unite the Union, which highlighted “significant delays” in the DIO announcement about the contract but said it was committed to working in partnership with the company and the MoD.

“The fact that Mitie Defence Ltd has been awarded the seven-year contract is something that Unite embraces as it will bring the continuity that our members wished for,” said Unite’s Christian Duo.

“Unite in the coming weeks and months will be engaging with the company whilst the mobilisation of the new contract takes place to assess the details of the new contract and what this entails as changes are envisaged.”

“But we are confident that this will not bring job losses.”

“We have developed a strong relationship with Mitie management both in the UK and Gibraltar and we are sure that our members aspirations in terms of improvement to living standards will continue as has been the case consistently since the start of the ISP contract back in 2007.”

“In partnership we can deliver an improvement in the service to the MoD and at the same time our Union members pay aspirations.”

The DIO’s new Overseas Prime Contracts programme will also see further contracts come into force at UK defence sites including Cyprus, Germany, the Falkland Islands and Ascension Island.

The next contract to be awarded will be for hard facilities management in Cyprus in early 2023.

The new contracts have been developed taking into account recommendations for improvements to the current arrangements and will mean a better service for military personnel based overseas, the DIO said in a statement.

Greater alignment to current industry standards will mean increased collaboration between DIO and its suppliers and allow for services to be better tailored to the requirements of specific sites.

A new, integrated software system will enable information to be shared more effectively.

The contracts have been designed to promote more efficient processes and the quicker delivery of high volume, lower value works, ensuring increased value for money.

Performance targets will encourage a high standard of repairs and reduce the need for repeat visits.

Commodore Steven Dainton, Commander British Forces Gibraltar, welcomed the announcement.

“I look forward to the new contract coming into effect later in the year and the benefits it will bring to our Armed Forces and staff here in Gibraltar,” he said.

“I’m pleased to hear of the improvements planned over the previous contract, which I believe will increase efficiency and the final standard of works provided, benefitting service personnel across our sites.”

Brian Talbot, Managing Director for Central Government & Defence at Mitie, added: “As proud supporters of the British Armed Forces, we are delighted to have been awarded the new Overseas Prime Contract for Gibraltar by the Defence Infrastructure Organisation.”

“By providing these vital services, delivered by our exceptional colleagues and underpinned by our industry-leading technology, we look forward to working with the Armed Forces based in Gibraltar and supporting the smooth delivery of operations on site.”