WYG gets £12m-a-year boost to DIO role

WYG has secured an extension to its Principal Support Provider (PSP) role with the Defence Infrastructure Organisation (DIO) which could be worth £12m a year.

The consultant was appointed to the DIO’s PSP framework role in 2014, for four years with the option of a further three. This amendment is initially for 12 months, but can be extended in one year increments up to a maximum of three years.

The DIO recently moved to a new regional commissioning model for its principal support providers, splitting England and Wales into three regions. WYG will work on new projects in the DIO’s central and southern regions.

The consultant said its expanded delivery partner role under the new model “could double” its existing revenue to £24m a year in each of the next three years.

WYG was one of four firms appointed to the PSP framework in 2014, along with Aecom, URS and Mott MacDonald. It covers construction design and project management services across the DIO’s 230,000 ha estate, encompassing a range of facilities including barracks, dockyards, airfields, training, medical and leisure facilities. The DIO planned to use the framework for procurement of all its future projects.

WYG will support the DIO’s implementation of the MoD’s estate optimisation plan, which is designed to reduce the size of the MOD’s footprint by 30% in line with the armed forces’ changing operational needs. The DIO is also handling the sale of sites associated with the plan.

WYG also announced two other contract wins: a two-year deal with the UK government’s Crown Commercial Services framework for property and construction support services, which can be extended in one year increments up to a maximum of four years, worth £3m a year; and a water resources project in Southern Africa for the Climate Resilient Infrastructure Facility, worth up to £5m over the next two years.

Paul Hamer, WYG chief executive officer, said: “These contract wins are testament to the range and quality of our technical expertise both in consultancy services across the UK and in our international development business. They build our strong track record in delivering major long term infrastructure projects for the UK government and its major agencies.

“In a highly competitive environment, the award of two out of three of the regions under DIO’s principal support provider regional commissioning model - covering all of England and Wales - is particularly pleasing and confirmation that during our work for the MoD over the past 25 years we have continually refreshed our approach to help the MoD to deliver its operational capability.”