Source · Select Committees · Defence Committee

Recommendation 2

2 Accepted

DIO's poor contract oversight caused significant problems with FDIS accommodation rollout.

Conclusion
There have understandably been serious concerns about the Defence Infrastructure Organisation’s contract oversight of the implementation of the FDIS contracts for the maintenance and repair of Service Family Accommodation. DIO is accountable for the fact that there was no contractual relationship between the suppliers and no lead prime to take overall responsibility: this contributed substantially to the problems with the rollout of the new accommodation service. (Conclusion, Paragraph 35)
Government Response Summary
The MOD accepts the conclusion and states the DIO continues to drive improved performance, monitors monthly, conducts reviews, and commissioned audits. The DIO is also conducting a Year 3 review until June 2025, will launch a website for transparency, and is carrying out an independent review of the estate.
Government Response Accepted
HM Government Accepted
The MOD accepts recommendations 2 and 3. The Defence Infrastructure Organisation (DIO) continues to drive for both improved performance and increased value for money from the Future Defence Infrastructure Services (FDIS) Accommodation Industry Partners (IPs). Performance is monitored on a monthly basis including oversight at Chief Executive level. The DIO has conducted a series of reviews to capture lessons learned from the delivery of the FDIS Accommodation contracts and commissioned external audits of IPs’ performance. The DIO is in the process of conducting its Year 3 review which will continue until June 2025. This ongoing review presents an additional opportunity to identify actions to enhance contract delivery, although delivery by FDIS IPs has significantly improved and all IPs have been removed from default. All assurance processes will be visible on the website to be launched with Defence Homes, our information will be transparent, and the DIO will be held to account. Additionally, the DIO is carrying out a comprehensive independent review of the ‘state of the estate’ which will allow for effective baselining of stock condition and clear measurement of the improvements that FDIS will continue to bring for the next four years.