Engie-Serco JV wins £810m maintenance contract with Ministry of Defense


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Vivo Defense Services, a 50:50 joint venture between services company Serco and energy and services company Engie, has won two residential maintenance contracts with the Ministry of Defense (MoD) with a potential value of £810 million over seven years. The two regional repair and maintenance contracts will cover the southwest and southeast, which together make up 60 percent of DoD accommodations for service families. The southwest region has 14,000 homes in Salisbury Plain, Gosport, Bristol, Devon and Cornwall, while the southeast region has 13,000 homes in Oxfordshire, Buckinghamshire, Hampshire, London, Kent and Essex. The contracts, awarded by the Defense Infrastructure Organization (DIO) under the Future Defense Infrastructure Services Program, are scheduled to begin in March 2022, following the mobilization phase. The contracts will cover both proactive and reactive maintenance as well as safety checks. In a statement, Vivo said it also plans to pilot a net zero carbon modification program, “which decarbonizes and digitizes existing housing stock,” across some homes within its jurisdiction. The contracts are expected to have a base value of £296m over an initial period of seven years, with the possibility of three additional contracts being extended for one year. The Ministry of Defense has estimated that projects commissioned outside the core are likely to be worth another £514m over the first seven years. Vivo added that it will provide apprenticeships, work placements and graduation plans within contracts, including secondments to former service employees, with 20 percent of vacant or new positions reserved for people with “military relatedness”. Both Engi and Serko are signatories to the Armed Forces Charter, a pledge to support service members, superheroes, veterans, and families. James Savage, Head of Residence, DIO, said: “These new contracts provide an opportunity to decisively break from the past and […] Providing more responsive and resilient services to the Armed Forces and their families.” Colin Macpherson, chief executive of ENGIE UK and Ireland, said: “By implementing smart, modern home technology, we plan to take a more proactive approach to maintenance, while encouraging open dialogue with families.” The Emmy won last week With a £550m contract to maintain Ministry of Defense residential properties in central and northern England, Vivo earlier this month won two of four regional facilities management contracts it said could be worth up to £3.4 billion over seven years.The joint venture is competing Also on seven more DIO contracts.


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