U.K.’s DIO awarding $645 million in military contracts

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LEICESTER, England, Dec. 13 (UPI) -- The United Kingdom's Defense Infrastructure Organization will award $645 million in contracts in 2013.

The DIO contracts will be awarded under its National Capital Framework.

Ten British firms have been invited to compete. The DIO said the contracts will be awarded before the end of 2013 and run initially until 2017, with a potential extension of up to three years.

British companies invited to participate include: Balfour Beatty, BAM Construction, Carillion Construction, Interserve, Kier, Lend Lease Construction, Miller Construction, Morgan Sindall, Skanska and Wates Construction, the British Ministry of Defense said in a release.

Each contract will include the design and building of construction projects worth up to $80.6 million.

"Changes to U.K. military basing arrangements are expected to generate requirements for new capital works in the years ahead and it is vital these are met flexibly and cost-effectively, enabling us to provide a defense estate which meets military needs and supports our armed forces," Next Generation Estate Contracts program head Steve Rice said.

"Early in the NGEC program our research determined that framework arrangements were the best mechanism to achieve this and I am delighted that we have such a strong field of companies in the competition."