Defence Estates reveals strategy

by Kathy Watson



Defence Estates, which looks after the Ministry of Defence's property portfolio, has been fleshing out the principles of prime contracting as part of the launch of its new strategy document In Trust and On Trust which was formally launched today (7 June) by defence secretary Geoff Hoon.

Speaking as part of the launch, Ian Andrews, chief executive of Defence Estates, warned new prime contractors against ditching members of their supply chain without due cause after the award of a contract. "We will be contracted with the prime contractor and the supply chain so we will have to agree any (subsequent) changes to the supply chain," he said. "A key theme of our new strategy is to use supply chain management to achieve better value for money."

Software compatibility will be an important issue for supply chains, said Andrews. He advised prime contractors to liase with their supply chains now to ensure they reap the benefits of the same information technology software.

Andrews denied that prime contracting is proving unpopular. "The most senior people in the industry recognise we both need to change. I feel most strongly that Defence Estates cannot just tell the industry to change. We at Defence Estates have to change with them."

In support of this, he promised that prime contractors and specialists will be provided with a feedback loop to Defence Estates to ensure that the system works effectively.

Andrews also said consultants need not feel forced to choose between the roles of client advisor and member of a supply chain for all DE work. "They can operate in either role, although they cannot be on both sides of the fence within the same contract," he said. In support, he cited Babtie, which is working as client advisor on the Faslane contract as well as in a supply chain on the Devonport D154 nuclear submarine dock contract.

The new MoD strategy sets out much higher standards of estate management for both the built estate and the rural estate. It specifies that environmental considerations will be given higher status, promises to sell off unnecessary land-holdings, improve estate planning and benchmark its activities. The accommodation it retains will be maintained to a much higher standard.

There will be a marked increase in the number of DE sites sold for housebuilding in the south and east as DE takes advantage of high housing demand to maximise selling prices.