| 1. |
INTRODUCTION |
6 |
| 2. | EXECUTIVE SUMMARY |
7 |
| 3. | ECONOMIC BACKGROUND |
10 |
| 3.1 | GDP |
10 |
| 3.2 | INFLATION & INTEREST RATES |
11 |
| 3.3 | UNEMPLOYMENT |
12 |
| 3.4 | MANUFACTURING OUTPUT |
12 |
| 3.5 | STERLING |
13 |
| 3.6 | CONCLUSIONS |
14 |
| 4. | MINISTRY OF DEFENCE |
15 |
| 4.1 | KEY OBJECTIVES FOR THE MINISTRY OF DEFENCE |
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| 4.2 | BACKGROUND |
16 |
| 4.3 | ISSUES FACING THE MOD |
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| 4.4 | TOP LEVEL STRUCTURE OF THE MINISTRY OF DEFENCE |
18 |
| 4.5 | RESOURCE AND MANNING LEVELS |
20 |
| 4.6 | SMART ACQUISITION |
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| 5. | OVERALL MOD EXPENDITURE |
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| 5.1 | OVERALL GOVERNMENT RESOURCE EXPENDITURE |
22 |
| 5.2 | OVERALL DEFENCE RESOURCE EXPENDITURE |
23 |
| 5.3 | OVERALL GOVERNMENT CAPITAL EXPENDITURE |
25 |
| 5.4 | CAPITAL SPENDING IN THE DEFENCE SECTOR |
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| 6. | CONSTRUCTION ACTIVITY IN THE DEFENCE SECTOR |
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| 6.1 | DEFENCE ESTATES |
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| 6.2 | NEW WORK AND REFURBISHMENT EXPENDITURE |
30 |
| 6.3 | CAPITAL SPENDING BY THE PRIVATE SECTOR IN DEFENCE |
32 |
| 7. | CONSTRUCTION PROJECT PROFILES |
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| 7.1 | OVERVIEW OF THE DEFENCE ESTATES AND PROCUREMENT PROCESSES |
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| 7.2 | REGIONAL PRIME CONTRACTS |
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| 7.2.1 | Overview Regional Prime Contract Scotland |
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| 7.2.2 | Overview Regional Prime Contract South-West |
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| 7.2.3 | Overview Regional Prime Contract South-East |
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| 7.2.4 | Overview Prime Contract Central |
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| 7.2.5 | Overview Prime Contract East |
40 |
| 7.3 | PROJECT SLAM SINGLE LIVING ACCOMMODATION MODERNISATION |
40 |
| 7.3.1 | Overview |
40 |
| 7.3.2 | Types of SLA (Single Living Accommodation) |
41 |
| 7.3.3 | Catterick |
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| 7.4 | AQUATRINE |
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| 7.4.1 | Overview Package A |
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| 7.4.2 | Overview Package B |
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| 7.4.3 | Overview Package C |
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| 7.4.4 | Aquatrine Partnering Management Organisation (PMO) |
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| 7.5 | PROJECT ALLENBY/CONNAUGHT |
48 |
| 7.6 | PROJECT VANGUARD |
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| 7.7 | MOD ESTATE LONDON PROJECT (MODEL) |
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| 7.8 | HOUSING PRIME |
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| 7.9 | CORE SITES |
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| 8. | CONTRACTOR PROFILES |
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| 8.1 | LEADING CONTRACTORS |
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| 8.2 | PROFILE OF LEADING CONTRACTORS |
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| 8.2.1 | AMEC PLC |
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| 8.2.2 | Alfred McAlpine |
60 |
| 8.2.3 | Atkins |
60 |
| 8.2.4 | Bovis Lend Lease |
61 |
| 8.2.5 | Balfour Beatty |
61 |
| 8.2.6 | Carillion |
61 |
| 8.2.7 | Costain |
62 |
| 8.2.8 | HBG Construction |
62 |
| 8.2.9 | Interserve |
63 |
| 8.2.10 | Jacobs Engineering |
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| 8.2.11 | Kier |
64 |
| 8.2.12 | Kellogg Brown & Root |
64 |
| 8.2.13 | Laing ORourke |
64 |
| 8.2.14 | Sir Robert McAlpine |
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| 8.3 | LEADING CONSORTIA |
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| 8.3.1 | Aspire |
65 |
| 8.3.2 | Debut Services |
65 |
| 8.3.3 | Amec-Turner |
66 |
| 8.3.4 | PriDE |
66 |
| 8.3.5 | Inteq |
67 |
| 8.3.6 | Babcock DynCorp |
67 |
| 8.3.7 | MoDern Housing Solutions (MHS) |
67 |
| 8.3.8 | CarillionEnterprise |
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| 9. | DIRECTORY OF ORGANISATIONS |
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|
TABLES AND CHARTS |
| CHART 1 | INTEREST RATES AND INFLATION (CPI) FROM 1990-2009 |
11 |
| TABLE 2 | LEVEL OF UK MANUFACTURING OUTPUT 1999-2005 (2002 = 100) |
12 |
| TABLE 3 | EXCHANGE RATE FLUCTUATIONS 2002-2007 - STERLING TO THE DOLLAR, AND THE EURO, SPOT RATES |
13 |
| TABLE 4 | TOP LEVEL STRUCTURE OF THE MINISTRY OF DEFENCE |
19 |
| TABLE 5 | TOTAL STRENGTH OF
UK REGULAR FORCES | 20 |
| TABLE 6 | TOTAL PUBLIC SECTOR RESOURCE BUDGET (£ MILLIONS) |
22 |
| TABLE 7 | TOTAL PUBLIC SPENDING FOR THE MINISTRY OF DEFENCE |
24 |
| CHART 8 | MINISTRY OF DEFENCE SPENDING AT CONSTANT PRICES 2000 2008 |
25 |
| TABLE 9 | TOTAL PUBLIC SECTOR CAPITAL BUDGET (£ BILLIONS) |
26 |
| CHART 10 | MIX OF RESOURCE AND CAPITAL EXPENDITURE IN DEFENCE. |
27 |
| CHART 11 | MIX OF DEFENCE RESOURCE AND CAPITAL EXPENDITURE OVER TIME. |
28 |
| TABLE 12 | MINISTRY OF DEFENCE ESTATE NEW WORK, RMI £M |
31 |
| TABLE 13 | MINISTRY OF DEFENCE ESTATE NEW WORK, RMI £M |
32 |
| TABLE 14 | CAPITAL SPENDING BY THE PRIVATE SECTOR (£ MILLIONS) |
33 |
| TABLE 15 | MINISTRY OF DEFENCE PFI PROJECTS BY NUMBER AND CAPITAL VALUE |
33 |
| CHART 16 | PRIVATE SECTOR CAPITAL SPENDING MOD 2001-2008 |
34 |
| TABLE 17 | MOD MAJOR ONGOING ESTATE PROJECTS 2002-2028 (WITH ESTIMATED COSTS) (£M) |
35 |
| TABLE 18 | REGIONAL PRIME CONTRACTING PROJECTS UK 2006 |
37 |
| TABLE 19 | PROJECT SLAM YEARS 1 5 (2003 2008) NUMBER OF BED SPACES TO BE BUILT |
41 |
| TABLE 20 | PROJECT SLAM YEARS 6 10 (2008 2013) NUMBER OF BED SPACES TO BE BUILT |
41 |
| TABLE 21 | DIVISION OF CONTRACTS FOR PROJECT AQUATRINE. |
44 |
| TABLE 22 | INFRASTRUCTURE BREAKDOWN FOR PACKAGE A. |
45 |
| CHART 23 | AQUATRINE COST PER PROJECT %. |
48 |
| TABLE 24 | TIMELINE FOR PROJECT ALLENBY/CONNAUGHT PROJECT |
49 |
| TABLE 25 | PLANNED CONSTRUCTION WORK BY SITE AND PROJECT TYPE NUMBER OF BUILDINGS |
51 |
|
TABLE 26 |
SECTOR ANALYSIS - DEFENCE |
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