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CONTACT:
Vincent Smith
+44 7802 216940
smithv@uk.ibm.com

IBM Business Consulting Services helps MOD deliver their largest PFI Estates deal

7 April 2006: This week’s Financial Close of the £8 billion Project Allenby/ Connaught represents a major milestone for the MOD, its advisors and its contractors. The Project involves the redevelopment of Aldershot Garrison and three Garrisons on Salisbury Plain under the terms of a 35 year Private Finance Initiative (PFI) accommodation contract.

As the MOD's commercial advisors, IBM Business Consulting Services has supported the MOD throughout the procurement. Over the last six years IBM Business Consultancy Services has provided a broad range of services, including a major role in the project’s planning, procurement strategy, programme management, commercial and procurement advice, and negotiations with the bidders. Mark Richardson, the Partner leading IBM’s work on the project, said “Project Allenby / Connaught is an effective way of procuring and operating modern, functional and flexible accommodation for the MoD. Standardisation of designs and planning work across four Garrisons in southern England will deliver significant economies of scale.”

Mike Cooper, the MOD’s Project Manager for Allenby/ Connaught said “The IBM Advisory Team has actively supported the delivery of ALLENBY/CONNAUGHT through each phase from its inception in 1999 to today’s announcement of Financial Close. The Team has played a pivotal role in developing and then negotiating much of the commercial framework that will underpin the delivery of this vital Project for the MoD. Throughout their involvement I have been particularly impressed by both the quality and commitment that the advisors have shown to delivering the Project’s objectives”.

The Project involves approximately £1.2bn of construction and refurbishment over a 10 year period, the release of 160 hectares of land in Aldershot for urban redevelopment and the provision of facilities management and assorted support services (including catering, transport and stores) across the four Garrisons for a 35 year period. The construction works include the construction or refurbishment of 11,000 single soldier en-suite bedrooms and the demolition of more than 400 buildings.

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About IBM

IBM is a leading supplier to the Ministry of Defence of business solutions, comprising consulting, systems integration, systems management, technical support and software and hardware. IBM's strategy is to be the government's trusted business partner, delivering major IT-enabled business change that improves efficiency and enhances front-line services.



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