£256 Million Facilities Management Contract in Cyprus Secured

The £256 million contract awarded to Mitie Defence Limited encompasses maintenance work, repairs, servicing, and comprehensive facilities management for the MOD’s extensive estate in Cyprus. This contract includes all MOD locations in Cyprus, such as RAF Akrotiri, Episkopi, Dhekelia, Ayios Nikolias, Troodos, Bloodhound Camp, and Radio Sonde. It is set to commence in the autumn and will involve Cypriot companies as part of the supply chain.

This is the second agreement to be activated under DIO’s new Overseas Prime Contracts (OPC) initiative, following the launch of a similar contract in Gibraltar in November 2022. Additional facilities management contracts will be introduced in other locations including Germany, the Falkland Islands, and Ascension Island. The agreement is for an initial seven-year term and is designed to be more adaptable and responsive to the needs of service members and staff in Cyprus, ensuring they can concentrate on their duties with confidence in a safe and reliable infrastructure.

The new contracts have been formulated based on recommendations for enhancing current arrangements, ensuring improved service for military personnel stationed overseas. They aim to deliver better value for money and expedite repairs, minimizing bureaucracy and unnecessary processes to maintain operational efficiency.

Enhanced alignment with contemporary industry standards will foster increased collaboration between DIO and its suppliers, allowing services to be customized to meet the specific needs of various sites. An integrated software system will facilitate more effective information sharing.

The contracts have been crafted to encourage more efficient processes and faster delivery of high-volume, lower-value work, ensuring heightened value for money. Established performance targets will promote high-quality repairs and reduce the necessity for repeat visits.

DIO’s Chief Operating Officer David Brewer stated:

DIO is dedicated to supporting members of the Armed Forces who rely on us for the facilities and essential services that enable them to operate safely and securely.

This significant milestone reflects years of effort in designing a contract that builds upon the successes of existing hard facilities management agreements, while introducing additional services and enhancements to improve the quality of life for our Armed Forces in Cyprus.

Air Vice Marshal Peter Squires, Commander British Forces Cyprus, remarked:

I’m pleased that this contract has been awarded and look forward to its implementation and the advantages it will bring to our personnel, both uniformed and civilian, here in Cyprus. The MOD’s sites in Cyprus are diverse and geographically spread out, which adds complexity, but I am confident that the team is prepared to tackle it.

Brian Talbot, Managing Director of Central Government & Defence at Mitie, commented:

After over 15 years of supporting the UK Armed Forces in Cyprus, we’re proud to continue this partnership with the award of the Overseas Prime Contract. We look forward to implementing a transformational asset management system that will support the new enhanced asset maintenance standards for the DIO estate. We will also upgrade key facilities to meet the evolving needs of British military personnel across Cyprus.

The next OPC contract, focusing on hard facilities management in Germany and broader Europe, is expected to be awarded next month, with the Cyprus Soft Facilities Management contract anticipated for summer 2023 and the final contract related to the South Atlantic Islands set for summer 2024.