Everything Must Go – The MoD Finds More Stuff to Sell


Rolling off the back of the failed attempt to sell off (kind of, I know it was technically a Government Owned entity) DE&S the MoD has confirmed it is still looking to sell of more bits of itself.

Contract news

Title attributed to the contract by the contracting authority:

Sale of the Defence Support Group and Land Equipment Service Provision and Transformation Contract (hereinafter referred to as the Service Provision Contract – SPC)

Mainly for vehicles but also including other Land equipment;

Repair and maintenance services of military vehicles. Repair and maintenance services of firearms and ammunition. Repair and maintenance services of weapons and weapon systems. Fleet management, repair and maintenance services. Repair and maintenance services of military vehicles.

The MOD is seeking Expressions of Interest from companies or consortia interested in purchasing the Land Business of the Defence Support Group (DSG), structured as below.

DSG is a Trading Fund wholly owned by the UK Secretary of State for Defence. It carries out repair and overhaul of the Army’s armoured vehicles and light weapons, and also provides services directly to the front line across the majority of land platforms through in-barracks support.

DSG operates today from eight main sites across the UK, including the headquarters in Andover, with additional “in-theatre” presence in Camp Bastion, Afghanistan.

DSG has been operating as an ‘arms-length’ organisation from the core MOD for a number of years, including whilst under its previous forms of the Army Base Repair Organisation (ABRO) and the Defence Aviation Repair Agency (DARA).

The British Armed Forces (predominantly the Army) are the primary customer for DSG and the long-term vision for DSG is a transformed organisation with greater technical capabilities, introduced post sale, able to perform a more intelligent equipment management and support role than is currently the case.

Since DSG supports capabilities which remain very important to the MOD, a new SPC will be put in place such that a newly formed company (New DSG) can continue to deliver its range of services post sale to the MOD.

The proposed structure of the transaction is the transfer of a substantial part of the operations, functions and assets of DSG Trading Fund to New DSG, the sale of a majority voting shareholding or all of the shares in New DSG to a purchaser and the parallel award of the SPC to New DSG for provision of services back to MOD. If the MOD decides to retain a minority shareholding in New DSG, the purchaser and the MOD will enter into a shareholders’ agreement relating to New DSG.

Subject to maintaining any specific militarily essential assets, people and capabilities and as necessary at specific locations, the New DSG business could comprise: the SPC providing the services to the MOD as described below; other services to the MOD (potentially Strategic Support Supplier (SSS) / fleet management services) and (potentially) commercial services to other government or non government customers.

It is intended that under the SPC, New DSG will provide the following nominated requirements for Land platforms and equipment to the MOD:

  • Maintenance, Repair & Overhaul: levels 1 – 3: Inspections, repair and service activity (predominantly for A & B vehicles) including the provision of non-routine activities and mobile support for units of all three services and Other Government Departments.

  • Maintenance, Repair & Overhaul: Level 4: Depth repair and overhaul activities (both routine and non-routine) necessary to ensure capability, structural integrity and operational safety of vehicles

  • Receipt, Inspection, Issue & Storage (RIIS): Provision of resources to fulfil the requirement for RIIS activities for stored equipments, including in-storage maintenance, for vehicles, other equipment and inventory.

  • Training Uplift Fleet: The end-to-end management and support of the Army’s Training Uplift Fleet at specific UK locations

  • Inventory & Repair Management: Provision of inventory and repair management services for nominated requirements, including the procurement (either as agent of the MOD or as principal) of spares and other items for use either by New DSG in the performance of the SPC and other contracts for the MOD or for use by other MOD customers.

  • Power Pack Regeneration Facility Personnel: Provision of Sponsored Reserve personnel able to conduct in theatre power-pack regeneration as directed by the in-theatre support chain of command.

  • Light Weapons Strategic Support Supplier (LW SSS): Provision of an availability service for in-scope weapons.

  • Army HQ Fleet Management: Support to Army HQ Fleet Management activity and development of evidence based recommendations for the optimisation of the Army’s equipment fleets and delivery of cost efficiencies across the Army.

Is there anything else left to flog?

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