Capture (Bid Strategy) Analysis – Project Hestia

Baskar Sundaram
Baskar Sundaram
FM Opportunities in the UK Higher Education Sector

Defence Infrastructure Organisation (DIO) builds, maintains and services the infrastructure required by UK Armed Forces. In 2014, DIO planned to achieve the operational efficiencies by consolidating 80 soft FM contracts worth £250 Mn into seven regional contracts and named the effort as “Project Hestia”. The soft FM services consist of catering, retail & leisure, cleaning, waste management and hotel & mess services. All the sites covered by PPP, PFI, the Defence Training Estate, Housing sites with Total FM contracts in place. The US Visiting Forces (USVF) and Soft FM contracts were also a part of Project Hestia. The regional break-up of contract was as follows:

Region Award Date (Tentative) In Service Date (Tentative) Value (in £M) DurationB
South 1Q 2017 3Q 2017 200-400 5 years
South East 3Q 2017 1Q 2018 180-380 5 years
Scotland & North Ireland 4Q 2017 2Q 2018 150-220 5 years
North 4Q 2017 2Q 2018 50-100 2 years
Wales & West Midlands 1Q 2018 3Q 2018 140-300 5 years
East 1Q 2018 3Q 2018 167-250 5 years
South West 3Q 2018 1Q 2019 NA NA

The upcoming opportunities in East England region were assessed. Soft FM services to be delivered at 62 defence sites (22 major) located across the region. About 64% of total cost of services was associated with catering and hotel services, followed by cleaning (19%) services. Since a major chunk of cost of FM services consist of catering services, the client was looking for a suitable service provider. Three prospective partners (i.e. BaxterStorey, Servest and CH&Co) identified to deliver the catering services in the region. 

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