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Press Notices

PFI deal to give Armed Forces new plant equipment

14/06/05

The Amey Lex Consortium (ALC) has been awarded the contract for a new £600 million Private Finance Initiative (PFI) deal to provide plant equipment for the Armed Forces, Lord Drayson, Minister for Defence Procurement, announced today.

The contract covers heavy plant equipment, logistic support and construction machines, collectively termed 'C Vehicles'. Many of these components are used in digging, dozing, lifting and transporting, both in peacetime and whilst on operations. The great utility of this equipment has been seen on recent operations, building and maintaining the infrastructure for our troops.  The contract is valued at over £600 million for the 15-year period.

Sourcing the equipment through a PFI deal will allow for rapid fleet turnover, especially in the early years of the contract. This approach will allow changes in technology and fleet management processes to be introduced quickly. This will reduce the maintenance and supply burden, reducing costs and benefiting front-line troops.

Lord Drayson said:

'I am pleased to award the C Vehicles contract to the Amey Lex Consortium.  By providing modern and efficient support vehicles for the UK's Armed Forces, this PFI contract will improve the capability of our front line troops, whilst saving the taxpayer money. In this case the PFI method proved to be the best choice for value-for-money service delivery.'

The best elements of commercial practise will be used to support maintenance and repair, which will reduce spares holdings and will allow the C Vehicles to be used flexibly across the armed forces.

ALC, selected through a rigorous competition process, is made up of Amey plc (within the Ferrovial group of companies) and RAC plc.  Full service provision is expected by April 2006.

Notes to editors

1. The C Vehicle Capability project is managed by the Engineer Vehicles & Plant Integrated Project Team within the Defence Procurement Agency (DPA) at MOD Abbey Wood with the in-service capability being delivered by the Engineer Systems Support IPT within the Defence Logistics Organisation (DLO) at MOD Andover.

2. For further information contact Christian Cubitt in the MOD press office on 0207 218 2661.

Last Updated: 15 Jun 05