This memorandum has been prepared to support the Committee of Public Accounts’ consideration of the Ministry of Defence’s provision of accommodation to its service personnel. It is an update to an earlier memorandum that we published on this subject in June 2016.
Because of the requirement that service personnel are mobile and due to the remote nature of many of the locations in which they serve, all regular service personnel are entitled to subsidised accommodation The Ministry of Defence has previously acknowledged that the service that was being provided to service families through the National Housing Prime contract was not acceptable and has worked with CarillionAmey, the contractor to whom the contract had been awarded, to put in place an improvement plan. CarillionAmey has improved its performance and met its overall performance targets since April 2016, however it has not met its performance targets against all of the underlying indicators. The Ministry of Defence has decided to continue its contract with CarillionAmey primarly on the basis of improved performance and the increased focus on performance management of the contract.
16 January 2017