The UK Defense Ministry has awarded two managed service provider (MSP) contracts to US based firms Bechtel and CH2M Hill as part of plans to help cut public costs.
Formal offers to the companies have been made to help UK MoD to handle its Defense, Equipment and Support (DE&S) procurement program, the ministry said on Tuesday.
The ministry has been criticized for cost over runs and delays.
The companies will work alongside existing DE&S staff to drive transformation of the way in which DE&S manages the acquisition and support of defense equipment, and helps deliver the MOD’s 10-year £164 billion ($262 billion) equipment plan.
The two contracts are for an initial three and a half years, with the option of two one-year extensions.
DE&S matches the 4 ‘domain’ areas of activity within the armed forces, which oversee the majority of its project and program procurement.
CH2M Hill has been offered the contract for project delivery in the Land and Joint Enabler domains, with Bechtel offered the contract for the Air and Fleet domains. The human resources contract has been offered to PwC.
The MSPs are being brought in to drive the DE&S transformation program, by providing skilled personnel who have the expertise and past experience in implementing transformational change in organizations as large and complex as DE&S.
Once contracts are signed, the MSPs will provide strategic support and assistance in specific areas of the DE&S business.
Minister for Defense Equipment, Technology and Support Philip Dunne said, “the contracts we have offered to CH2M Hill, Bechtel and PwC represent a key milestone in the work to transform DE&S into a higher performing project delivery organization.
“Once their work gets underway, we can expect the MSPs to provide DE&S with some of the best private sector skills available to improve even further our ability to procure defense equipment and support as cost effectively as possible,” he added.