in Defence

DIO sets out commercial strategy

Posted 29 January 2018 · Add Comment

Earlier this month the Defence Infrastructure Organisation (DIO), on behalf of the Ministry of Defence (MoD), set out its its commercial strategy setting out its vision for future ways of working with suppliers in the soft and hard facilities management, construction and property advisory sectors



DIO currently spends around £3 billion each year buying infrastructure services to enable the men and women of defence to live, work, train and deploy across the UK and overseas.

The strategy, which has been developed in consultation with industry partners, aims to transform the way DIO does business. It provides information on the types of opportunities available to prospective suppliers and outlines plans to create and sustain a competitive market.

Central to the strategy is the importance of a broad and more diverse supply base which increases value back to the taxpayer by generating wider competition. DIO aims to increase supplier numbers and create a genuinely competitive supply base which offers greater opportunities to small and medium-sized enterprises (SMEs) as well as larger suppliers.

As a main infrastructure client, DIO will engage with industry by sharing pipeline information well in advance of planned procurements to help shape the market, drive innovation and invigorate and maintain a diverse portfolio of suppliers. In turn this will support economic growth nationally and in the regions by giving businesses certainty to recruit and retain staff.

Minister for Defence, Personnel and Veterans, Tobias Ellwood said: "The defence estate is where our armed forces live, work, train and deploy from and it’s crucial we give them the best infrastructure possible.

"Working with industry is key, and this commercial strategy will ensure that the £3 billion we invest each year in our estate gives more value for money, is better aligned to military needs and gives more certainty to the defence supply chain.

Graham Dalton, DIO’s CE said: "The publication of this strategy, in anticipation of the updated 2018 DIO procurement plan, marks an important moment for DIO. We realise that we have not been the easiest organisation to do business with in the past and we are dedicated to changing that.

"This strategy sets out our intent to broaden our supply base, and for our existing and prospective suppliers to have the confidence to work with us. We will work in an open and constructive way to deliver innovative and value for money services that meet the requirements of defence and the armed forces."

Mark Fox, Chief Executive of the Business Services Association said: "I welcome the publication of the DIO commercial strategy. BSA members were closely involved in its development. Its publication marks an important step forward in the relationship, with government partnering with the private sector to deliver the best possible services."

Gareth Rhys Williams, Government Chief Commercial Officer said: "At a crucial time for defence spending, I am very pleased that the Defence Infrastructure Organisation has applied government best practice alongside working with industry to launch its first ever commercial strategy. It is important that we build a strong and broad supply chain for government contracts and by giving certainty and transparency to the market we ensuring value for money for the taxpayer and a vibrant economy."

The DIO commercial strategy sets the direction for future DIO procurement plans.
 

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