I am pleased to announce that the Amey Lex consortium has been awarded a contract to provide the armed forces with a new generation of heavy plant equipment, logistic support and construction machines, collectively known as C vehicles, under a private finance initiative deal. The contract is valued at over £600 million for the 15-year period.
The C vehicles will be used for earthmoving, digging, dozing, lifting and for transporting combat supplies around the battlefield. The great utility of this equipment has been seen on recent operations, building and maintaining the infrastructure for our troops.
Sourcing the equipment through a PFI deal will provide a more rapid fleet turnover, especially in the early years of the contract, which will allow changes in technology and fleet management processes to be introduced quickly, reducing the maintenance and supply burden thereby benefiting front-line troops.
The best elements of commercial practice will be used to support maintenance and repair, providing the opportunity to reduce spares holdings and to adopt a strategic pooling approach to the provision of the capability.