US giants in the running for £400m defence estate job

US firms Jacobs, Fluor, Jones Lang LaSalle, URS and CH2M Hill are among about a dozen firms in the running to secure the Ministry of Defence’s £400m contract to run
the defence estate.

The deadline for expressions of interest in the Defence Infrastructure Organisation’s (DIO) strategic business partner role closed on 20 July, with at least five bids submitted by consortiums comprising large programme management and property companies.

Among the bidders are Capita, which has teamed up with US engineer URS; Mace, which is understood to be partnering with KPMG and property management firm Telereal Trillium; and US consultant CH2M Hill, which has submitted a standalone bid.

Together, Mace and CH2M Hill comprise two-thirds of CLM, the Olympic Delivery Authority’s delivery partner, which also includes Laing O’Rourke.

Other firms understood to have submitted bids by the deadline include US engineer and consultant Jacobs, who is understood to be partnering with consultant Fluor and real estate giant Jones Lang LaSalle. Services company Serco is also understood to have submitted a standalone bid.

US construction firm Bechtel is understood to have expressed an interest, but is also eyeing the MoD’s forthcoming Defence Equipment and Support contract - which dwarves the DIO job - and it is not clear whether it submitted a bid. The firm declined to comment.

The DIO is is expected to announce a shortlist of three or four bidders by the end of summer, with an appointment expected in early 2013.

As revealed by Building this month, the contract value was initially stated as £100m, but rose to £400m just weeks after the tender was published.

A DIO spokesman said: “All applications will undergo an evaluation process prior to being considered for the invitation to negotiate phase.”