I am announcing the outcome of the Defence Fire and Rescue Project which has been examining potential improvements in how Fire and Rescue Services are provided to the Ministry of Defence, both in the United Kingdom and overseas.
In June 2018, I announced the Ministry of Defence’s intention to award the Defence Fire and Rescue Project contract to Capita Business Services Limited and I can today confirm this to be the case. Following a competitive bidding process Capita’s bid was deemed to deliver the best technical solution and the best value for money for Defence. The 12-year contract is worth £525 million and will mark a step change in capability for Defence’s Fire and Rescue capability.
The project will deliver a range of benefits whilst sustaining our worldwide fire and rescue capability. These benefits include improved safety for firefighter personnel and those they protect as well as fire risk management for the Department. This will be achieved through the investment in new equipment, technology and training which the contract will enable to happen faster than it otherwise would. In addition, we expect the contract to deliver significant financial savings over the course of its lifespan; money which can be reinvested into other areas of the Defence budget.
I can assure Parliament that these proposed contractual arrangements with Capita have been subject to thorough scrutiny and due diligence processes conducted across Government, including in the Ministry of Defence, Cabinet Office and HM Treasury. These assurance processes included the financial sustainability of Capita and tested their technical expertise to deliver the contract in a sustainable and resilient manner. Safeguards are in place to ensure there is no break in service provision. Capita have experience in delivering Fire and Rescue service provision as they already operate the internationally recognised Fire Service College at Moreton-in-Marsh.
Initially, around 560 MOD Civil Servants, mainly firefighting personnel, are expected to transfer under Transfer of Undertakings (Protection of Employment) Regulations to Capita as the contract is implemented over the next few years. Fire station managers, their staff and Trade Union representatives of the civilian workforce have been consulted throughout the project and are being formally told of the contract award today. I would like to pay tribute to the work they have and will continue to undertake for Defence. The Royal Air Force and Royal Navy will continue to employ firefighters. Over time there will be a reduction in the number of firefighters in the Royal Air Force due to the introduction of new technology and there may be opportunities in the future for some roles becoming Sponsored Reserves.
I can confirm that existing fire and rescue services provided to the Atomic Weapons Establishment in Aldermaston, the Defence Science and Technical Laboratory in Porton Down and at US visiting forces bases in the United Kingdom are unaffected by these changes. The Defence Fire Training and Development Centre at Manston will close in due course with training transferred to Capita’s existing fire training facility at Moreton-in-Marsh. The award of this contract will enable the Ministry of Defence to vacate large elements of the Manston site which will be released to support economic development, potentially including housing, in the local area.
This has been a complex procurement with a delay in the award of the contract following a legal challenge from Serco Ltd, the other final bidder. We have now mutually agreed an out-of-court settlement of £10 million which provides better value for money for the tax payer than an uncertain and costly court case. I can confirm that the MOD’s Accounting Officer has commissioned an independent review to ensure we learn from this acquisition process. This will be led by Tony Poulter, a non-executive director at the Department for Transport. The findings of the review will be published after the summer.