Companies CH2M Hill, Bechtel and PricewaterhouseCoopers (PwC) have each been offered managed service provider contracts (MSPs) to support the transformation of the Defence Equipment and Support (DE&S) division of the MOD.
DE&S buys and supports all equipment used by the armed forces and since April has operated as an arms-length body with the freedom to make decisions on pay, rules for promotion and grading structures.
The contractors are being brought in as part of the MoD’s 10-year £164bn equipment plan, which aims to ensure the DE&S is a ‘best in class’ acquisition organisation.
Contractors will work alongside in-house experts and DE&S staff to deliver the planned transformation of the way the organisation buys and supports equipment.
CH2M Hill has been offered the contract for project delivery in the Land and Joint Enabler areas, whilst Bechtel has been offered the contract for the Air and Fleet areas and PwC has been offered the contract for human resources.
Minister for defence equipment, technology and support, Philip Dunne (pictured), said: “The contracts we have offered to CH2M Hill, Bechtel and PwC represent a key milestone in the work to transform DE&S into a higher performing project delivery organisation.
“Once their work gets underway, we can expect the MSPs to provide DE&S with some of the best private sector skills available to improve even further our ability to procure defence equipment and support as cost effectively as possible.”