Plans to outsource the maintenance of Ministry of Defence sites have been revealed by defence secretary Philip Hammond.

The contracts to run the administration function of military bases across the UK are valued at £400 million over a ten year period.

Capita will lead a consortium of private sector firms in running the Defence Infrastructure Organisation (DIO), which manages MoD sites and covers 1.1 per cent of Britain’s land mass, with 230,000 acres of land with a workforce of just 2,500.

The move to privatise the functions of the DIO comes as the government seeks promote cost savings within the MoD as armed forces return from Afghanistan.

Andy Parker, Capita chief executive, said: “The partnership will help to unlock the knowledge, skills and resources that already exist within the DIO, while adding capability to tackle the significant cost-saving targets currently facing the MoD.”

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