Army fire-fighting service handed to outsourcer Capita in £525m deal
The Army has tasked outsourcer Capita with running its firefighting service at bases across the UK for the next 12 years.
Defence minister Tobias Elwood said the £525m contract award would deliver “significant financial savings”. The army would invest this money into other areas of Britain’s defence budget, he added.
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Outsourcing the work to Capita will enable quicker investment in digital tech than would otherwise be possible, he said. The force will also also be able to buy new fire engines and other equipment. This would help improve the service’s fire-fighting capability, he added.
The contract involves operating 53 fire stations in the UK, and in Cyprus and the Falkland Islands.
The company will also build a centralised training base for defence firefighters at its Fire Service College in Gloucestershire.
Capita chief Jon Lewis said the firm “has a record of delivering technology-enabled transformation of complex services”.
Contract delays
The outsourcer has already launched an eye-catching advertising recruitment campaign for the armed forces, aimed at young people. The campaign called on “snowflakes, selfie addicts, class clowns, phone zombies, and me, me, millennials” to join its ranks.
It beat rival Serco to the fire-fighting contract in June last year. But the official award has been delayed because of a legal challenge from the company.
Serco carries out other key contracts for the MoD including work on the nuclear deterrent. It has agreed a £10m settlement, allowing Capita to kick on with the first steps of the contract.
Serco’s UK and Europe chief Kevin Craven said the firm was “pleased that we have reached an amicable and constructive agreement”.
‘Playing with fire’
However, the award has drawn criticism from trade union Unite, which accused the government of “playing with fire” by privatising the service.
Unite assistant general secretary Gail Cartmail said: “The Defence Fire and Rescue Service is a national security critical service which plays a vital role in supporting our armed forces and keeping Ministry of Defence bases safe.
“Awarding the firefighter contract to Capita, rather than retaining it in-house, smacks of a desperation by ministers to prop up the under fire outsourcer and avoid another Carillion style collapse.
She also accused Capita of trying to “turn a quick profit from an essential service”.
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Capita has struggled financially in recent years, but the danger of a Carillion-style collapse appears to have passed. After a torrid 2017 in which profits plunged, former chief executive Andy Parker fell on his sword. New boss Lewis has begun the process of changing the company’s fortunes.
In its most recent full-year results in March, the company said it had slashed its net debt. Brokers at Shore Capital Markets said: “A return to growth in revenues and profitability remains on track”.
Main image: Getty