DIO’s priority is to support our Armed Forces by providing the facilities and services they need to live, work, train and deploy on operations. We’re determined to give the men and women who protect our country the best possible service.
We’re currently exploring whether working with a Strategic Business Partner (SBP) from the private sector could help us become a world-class infrastructure provider. This work has been going well and represents a leading-edge way of doing business that, if successful could be transferred across Government.
An SBP could help DIO unlock knowledge, skills and resources that are currently unavailable within the organisation and the wider Ministry of Defence (MOD). It could also save taxpayers’ money. Our new partner would be incentivised to deliver savings and increase efficiency and would help us to go that extra mile by bringing best practice from industry.
If the decision is made to bring in an SBP it will mean great change for DIO. It will also bring a wealth of fresh opportunities for our staff, as well as current and future industrial partners. Suppliers’ relations with the MOD will remain consistent and new business opportunities may open up, whilst the Tendering process would become easier as companies deal with industry peers.
DIO has received bids from the three bidding consortia: Telereal Trillium / KPMG / Mace; Serco / DTZ / Bechtel; and Capita / URS / PA Consulting.
‘Unincorporated’ or ‘Incorporated’
Each bidder has been asked to look at two options for partnering the DIO business - that’s to say adopting an ‘unincorporated’ or an ‘incorporated’ business model.
An ‘unincorporated’ model would embed an SBP executive management team into the existing DIO. This new team would bring appropriate expertise and resources as needed. The SBP would be responsible for managing the DIO under the EOM construct and business process framework.
The ‘incorporated’ model is the first of its kind and places DIO on the leading-edge of work to transform how MOD operates. It wouldn’t come into existence before 2016 and its first two years would be exactly the same as the ‘unincorporated’ model.
After this period, the DIO would become a Government Company (GovCo) - a separate legal entity owned by the Secretary of State and managed by the SBP under contract. It would be an Arms Length Body (ALB) like other Government organisations we work with, for example, the Environment Agency, Natural England and the Planning Inspectorate. The MOD will oversee the activities and performance of the new entity.
Excitement and innovation
In all the excitement and innovation, however, it is important to remember that an SBP will only be appointed if it helps to more efficiently provide Britain’s Armed Forces with what they need to do their job and gives value to the taxpayer. A third option exists for DIO not to appoint an SPB and continue our transformation through DIO’s new operating model, which we launched in spring this year.
Ultimately, our priority is to support our Armed Forces as they prepare for operations. We believe that bringing private sector expertise into the Civil Service may unlock a wealth of opportunity to help DIO better fulfil that responsibility.