The Defence Infrastructure Organisation (DIO) is the estate expert for the Ministry of Defence, supporting the armed forces to enable military capability by planning, building, maintaining, and servicing infrastructure. It delivers in excess of £1bn of capital projects each year and manages an estate budget in excess of £3bn per annum.
The Business Need for CPAC
Managing a huge annual spend, DIO necessarily holds a massive volume of cost data for both capital and running costs relating to its estate. However, there is a recognition by the client that this data is not presently leveraged to maximise accurate forecasting of future spend or to deliver strategic insights on the costs of managing the defence estate.
The CPAC Solution
In March 2020, Gleeds was appointed as lead contractor on the Cost & Price Analysis Capability (CPAC) programme. This is integrated with MOD’s wider Asset Management Programme. With PwC as our data analytics and systems sub-consultant, Gleeds is working with DIO to maximise the benefit of their database of historical costs and ongoing infrastructure spend to develop a series of cost modelling and benchmarking tools. These will significantly improve this client’s ability to estimate the cost of future works and provide assurance against estimates and quotations received from third party consultants and contractors.