News on 16 May
MoD PFI FM worth £11m a year

Support services to the MoD’s Whitehall project will deliver revenues of around £11m a year to Amey Business Services, part of the winning Modus Services Consortium (see News story from 15 May). Amey Ventures, the Group’s PFI specialists, are investing almost £11m in Modus Services in return for just under 20% of the equity.

Amey will also undertake a major relocation exercise as part of the contract to refurbish the MoD’s main HQ building under the Private Finance Initiative, worth a total of £1.5bn over 30 years.

Mike Pilbeam, MD of Amey Business Process Outsourcing, (pictured) said: "We are proud to be responsible for managing the delivery of such a wide range of customer-facing services to the Ministry of Defence’s headquarters. Operating in such a high profile and critical environment is an ideal sister opportunity to the services we already provide to organisations such as DERA."


Amey will provide around 60 support services for the duration of the concession, including:

  • building services, comprising planned and reactive maintenance;
  • asset management;
  • computer infrastructure and network management;
  • a help desk facility;
  • estates maintenance;
  • space planning;
  • office services;
  • cleaning and catering

Some 130 MoD staff will transfer to Amey under TUPE but no redundancies are planned. Those staff choosing not to join Amey will be found alternative roles within the Ministry of Defence.

Amey will also be managing the movement of some 4,000 staff from the Main Building to four adjacent Whitehall properties. They will be delivering a full complement of support services in these buildings for approximately four years whilst the Main Building is redeveloped. Upon completion of the refurbishment, Amey will manage the movement of these staff back into the Main Building and to the Old War Office, enabling the MoD to dispose of Northumberland House and Metropole Building in Northumberland Avenue, Great Scotland Yard, St Giles Court and St Christopher House as part of an overall reduction in central London staff numbers from 6,000 to 4,300, fulfilling one of the aims of the Strategic Defence Review.


Richard Byatt

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