Defence Infrastructure Organisation launches strategy to transform its procurement

The Defence Infrastructure Organisation (DIO), on behalf of the Ministry of Defence, has launched its commercial strategy, setting out its vision for future ways of working with suppliers in the soft and hard facilities management, construction and property advisory sectors.

The DIO Commercial Strategy, which has been developed in consultation with industry, aims to transform the way DIO does business. It provides information on the types of opportunities available to prospective suppliers and outlines plans to create and sustain a competitive market. “It sets out our vision for the ways we intend to work with suppliers in the soft and hard facilities management, construction and property advisory sectors,” said DIO chief executive, Graham Dalton.

Central to the strategy is the importance of a broad and more diverse supply base which increases value back to the taxpayer by generating wider competition. “DIO aims to increase supplier numbers and create a genuinely competitive supply base which offers greater opportunities to small and medium-sized enterprises as well as larger suppliers,” said Dalton.

As a main infrastructure client, DIO plans to engage with industry by sharing pipeline information well in advance of planned procurements to help shape the market, drive innovation and invigorate and maintain a diverse portfolio of suppliers. In turn, this will support economic growth nationally and in the regions by giving businesses certainty to recruit and retain staff.

“The publication of the strategy, in anticipation of the updated 2018 DIO procurement plan, marks an important moment for us.  We realise that we have not been the easiest organisation to do business with in the past and we are dedicated to changing that,” Dalton said.

DIO currently spends £3bn each year buying infrastructure services and the commercial strategy sets out the organisation’s intent to broaden its supply base and for existing and prospective suppliers to have the confidence to work with the DIO.

The strategy outlines the DIO’s guiding principles, which will be: -

  • To be easier to do business with
  • To work faster and smarter for our customers
  • To have a broader and more diverse supply base
  • To engage meaningfully with DIO stakeholders
  • To focus on value, not price

The DIO aims to publish its 2018 Procurement Plan in March 2018. Dalton also said that the organisation was keen to receive feedback from the industry on its strategy.

Click here to download the DIO Commercial Strategy.

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