7 Jul 2004

Interserve, the support services group, has been awarded the £240 million 'Armada' PFI contract to create, operate and maintain the MOD's new Single Living Accommodation (SLA) facilities at the Fleet Accommodation Centre (FAC) in Devonport, Devon. Construction will begin immediately and is scheduled for completion in early 2008. Facilities services will begin in October 2004 and will run for a total of over 24 years. Interserve was named preferred bidder for the contract in 2003.

Interserve will create the new SLA, comprising en-suite single living and mess accommodation, by building new facilities and refurbishing existing accommodation for junior ratings. Construction activity will include new build, demolition and rebuild of various accommodation blocks to be  in keeping with the surrounding Grade 2 listed buildings. When complete the base will provide accommodation for 55 senior officers, 195 junior officers, 456 warrant officers and senior ratings and 947 junior ratings – a total of just over 1650.

Interserve will also provide facilities services to the SLA both during the interim period and after construction is complete. These include help desk, maintenance of the built estate, crèche, catering, cleaning, waste disposal, laundry, grounds and security. Some of these services will also be provided at off-site locations in the local area .

The FAC is situated at the northern end of Devonport, the largest naval base in Western Europe, covering approximately 100,000 square metres. The facility offers a full range of support services to all Devonport-based ships and submarines, their ships' companies and their families. It also provides support for ships undertaking Operational Sea Training, other ships of the Fleet and other foreign navies.

Commenting on the significance of the SLA contract Adrian Ringrose, Interserve's Chief Executive, said, "This is a very substantial contract where we shall be able to deliver real value to the MOD through the integration of activities in our Project and Facilities Services arms. We are looking forward to working with all the personnel in Devonport over the coming years."

The contract has been awarded by the MOD's Warship Support Agency on behalf of the Naval Base Commander, Devonport. A special-purpose company, Falcon Support Services Ltd, owned 50 per cent by Interserve PFI 2003 Limited  and 50 per cent by Innisfree Limited, has been established to manage the contract.