17th Nov 2005 11:53
Babcock International Group PLC17 November 2005 Date: 17 November 2005Contact: Peter Rogers, Chief Executive Andrew Lorenz / Rob Gurner Babcock International Group PLC Financial Dynamics Telephone: 020 7291 5000 Telephone: 020 7269 7291 Babcock-led consortium wins contract award for £500 million Ministry of Defence Regional Prime Contract East Babcock now the leading supplier of base infrastructure maintenance services to the Ministry of Defence Babcock International Group PLC ("Babcock"), the support services company,announces today that its joint venture with Dyncorp International - BabcockDyncorp Limited - has been contracted by the Ministry of Defence (MoD) toprovide all property maintenance and future capital works schemes across the MoDestate in the East Region of the United Kingdom under the Regional PrimeContract East (RPCE). Babcock is the only company to have been awarded two of these Regional Primecontracts, following its win last year of the South West Prime Contract withBovis Lend Lease, and the Group is now the leading supplier of baseinfrastructure maintenance services to the MoD. The RPCE is the last of the fivePrime contracts to be awarded by the MoD. The contract will involve expenditure in the region of £500m for maintenanceservices and capital building works over a seven year period, starting in March2006. The MoD has an option to extend for a further three years. Babcock willbe the majority shareholder in the Joint Venture. The contract involves support for a number of MoD bases provided for the BritishArmy, Royal Air Force and DLO in an area extending from Lincolnshire in thenorth to Essex in the south, Derbyshire in the west and Norfolk in the east. Thecontract forms a central part of the MoD's initiative to provide a higherquality estate by changing its organizational structures and introducing PrimeContracting methods. It will involve the provision of a comprehensive buildingand infrastructure maintenance service, geared to improving the overallcondition of the estate, as well as the delivery of a major capital worksprogramme. Peter Rogers, Chief Executive of Babcock said;- "We are delighted to have won two of the five Regional Prime Contracts which,alongside our contract to maintain the new SLAM (Single Living AccommodationModernisation) units, ensures Babcock is now the leading supplier of baseinfrastructure maintenance services to the MoD. " - ends- Notes to editors:About Babcock International Group PLC Babcock International Group PLC is an asset management business. We manage fixedinfrastructure and mobile assets. Babcock integrates labour, technicalcapabilities, systems and supply chain partners to meet the outsourcing needs ofcustomers for 'mission-critical' capabilities. In the year to 31 March 2005 sales from continuing business were £745 million.In June 2004 Babcock acquired the Peterhouse Group which brought; Rail andNetworks to the Group. The Group operates across five core business segments: Defence Services, supplying facilities management, equipment support andtraining services to the armed forces. Technical Services, providing engineering and logistical support to both thedefence and civil sectors in the UK. Engineering and Plant Services supplying design, installation and maintenancesupport to the energy sector in Africa and the US. It also holds the Volvofranchise for construction equipment in Southern Africa. Rail, providing design, renewal and installation services for the UK railinfrastructure. Networks, supporting the design, maintenance and renewal of power transmissionand cellular telecommunications networks in the UK. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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