[SAC0015]

 

Written evidence submitted by Amey

 

Defence Sub-Committee call for written evidence on Service Accommodation

About Amey

  1. Amey is a provider of full lifecycle engineering, operations and decarbonisation solutions, for complex facilities and transport infrastructure. Combined with our in-house consulting capabilities we design, manage, and maintain clients’ assets throughout their lifetime. We employ 11,000 colleagues in the UK across all areas of our business.

 

  1. Amey has been proudly delivering Defence services in the UK for more than 100 years. Over a third of all colleagues employed across our military housing contracts are Armed Forces veterans or active reservists, and this is also reflected at senior management level where one in four of our Complex Facilities executive leadership team have come from a military background. As such, we understand the impact that military life can have on individuals and families, and we take our responsibilities to support Service personnel and their families extremely seriously.

Background

  1. In 2021, Amey bid successfully for the Central and Northern Regional Accommodation Maintenance Services (RAMS) contracts as part of the Future Defence Infrastructure Services (FDIS) suite of contracts. Under the two contracts Amey maintains 18,629 homes across Northern Ireland, Scotland, Wales, and the centre and north regions of England. This includes providing statutory and mandatory checks, repair and maintenance services and the preparation of allocated properties for Service families.

 

  1. On 30 December 2022, Amey came under new ownership. At the first Amey Ltd Board meeting under the new ownership in January 2023, the Board prioritised work on resolving the issues being experienced across the RAMS contracts. Through investment, additional resources and other measures outlined in this submission, the focus on the RAMS contracts has resulted in significant improvements in service delivery.

Overview

  1. The Defence Sub-Committee (the Sub-Committee) has launched an inquiry into Service Accommodation. The Sub-Committee has asked for views on several issues including measures put in place to resolve housing maintenance issues, the Ministry of Defence’s (MoD) plans to improve services and what’s being done to help Service personnel integrate into civilian life.

 

  1. Amey welcomes this inquiry and shares the MoD’s commitment to good quality, sustained delivery for Service personnel. We hope that our submission will be useful to the Sub-Committee as it considers current and historic issues relating to Service Family Accommodation (SFA).

 


Our response

What measures have been put in place to resolve the housing maintenance issues, hold service providers to account and ease the cost of living for service families?

  1. We are committed to working in partnership with the Defence Infrastructure Organisation (DIO), all the FDIS suppliers, and our supply chain to deliver excellent outcomes for Service personnel living in SFA. Following an extensive contract mobilisation period, we are now seeing improvements reflected across all service lines in the contracts.

 

  1. We are making renewed and sustained progress to consistently meet and exceed the Acceptable Levels of Performance as contracted and from there push towards the Target Levels of Performance. We have taken a range of measures to achieve this. Most fundamentally, we have invested substantial additional resources, both internally, including increasing Amey staff working on the contract by over 25%, as well as amongst our supply chain partners, increasing engineers and operatives by over 30%.

 

  1. These additional resources have been supported by refinement of processes, maturation of systems including IT, harnessing innovation, such as the use of the TechSee system (see paragraph 14 for more detail) to address heating issues rapidly and remotely, and an increased focus upon the use of data to improve decision-making.

 

  1. The results of this work are evident in our performance as we see improvement across service lines, as well as decreased rates of complaints submitted, and we are also seeing increased rates of complaint resolution.

 

  1. Considerable improvements have also been made consequent to the implementation of the rectification plans agreed with the DIO in September 2022 and we continue to progress towards a position satisfactory for both DIO and Amey. We have invested considerably in additional staff, both internally and within our supply chain, as well as in supporting functions. A key aspect of additional internal resourcing has been in how our frontline service is delivered and supervised. This includes the introduction of 26 additional direct staff responsible for managing void (empty home) preparations and ensuring they are carried out to a high standard. The investment in SFA at this point will reduce subsequent reactive maintenance requirements and intrusion for families. We have also enhanced our supply chain and generated increased resilience by appointing a greater number of qualified engineers and other operatives.

 

  1. As referenced in paragraph 3, our contracts are for repair and maintenance only which is crucial in terms of managing an ageing housing stock. However, Amey’s model of full lifecycle infrastructure services means that we can work in partnership with our clients to optimise the lifespan of their infrastructure assets and we believe that a similar approach could be taken to military housing. In terms of easing the cost of living for Service families, we have been working on a pilot with the DIO and SMEs in our supply chain to retrofit SFA at Catterick Garrison with a range of Net Zero solutions. This includes the installation of external wall rendering and insulation, double glazed windows, increased roof insulation and renewable energy sources, such as air source heat pumps and photovoltaic panels. Once complete, these improvements will not only reduce carbon consumption but will also help reduce energy bills for families while supporting the MoD’s ambition for the Defence estate to be Net Zero by 2030. However, it is worth noting that any decisions about upgrades and investment are made by DIO and we look forward to exploring our model of full lifecycle infrastructure services further with the DIO.

 

Are there examples of good practice in provision of service accommodation, which could be replicated across Defence? What are the lessons and what is the potential impact of the re-negotiation of the Annington Homes contract?

 

  1. Please see paragraph 12 for details of the pilot that Amey has been working on with the DIO. We look forward to developing further similar projects with the DIO. 

 

  1. Within the ambit of the current contracts, we are also innovating by using AI-powered virtual assistance, allowing our engineers to deliver a more effective service when carrying out housing maintenance tasks. TechSee enables families to transmit video and images of technical issues to remote operatives. Often, this allows the issue to be resolved remotely and immediately without the need for an engineer to visit. However, if a visit is necessary, our customer care team can virtually assess the job before attending the property – ensuring that the correct engineer is sent and that they have the right tools and parts necessary to resolve the issue. We have been using TechSee since the beginning of 2023 and are already starting to see significant benefits in service delivery, with over 40% (of approximately 1,000) of heating and hot water issues resolved remotely through this technology over last winter.

 

  1. In addition to the above, we have introduced a targeted approach to damp and mould issues, and since 1 March 2023 we have had 15 rapid response teams operating across our two regions. These teams provide an immediate response to damp and mould tasks, attending the property to make an assessment, carrying out immediate treatment of the mould and assigning appropriate follow-on works. Since we introduced these new measures, we have seen an 80% reduction in open complaints relating to damp and mould.

 

  1. To address the diverse needs of Service families, our Customer and Community Engagement Officers are embedded within each estate. They assess local needs and subsequently deliver tailored social value initiatives that directly address local challenges and barriers. This approach ensures that the support we provide is both relevant and impactful.

 

  1. We are also working in collaboration with all our partners in this complex landscape to enhance our housing surgeries. These sessions now offer not only housing-related assistance but also valuable signposting to the extensive services and resources available to Service families. This expanded approach ensures that those who require specific support can readily access a wealth of resources.

 

  1. The re-negotiation of the Annington Homes contract is a matter for the MoD but we would support any initiative that would take a full lifecycle approach to the housing stock.

 

Is enough money being invested to modernise and future proof military accommodation and how long will it take for all military accommodation to meet an acceptable standard of energy efficiency? Is the MOD being as forward thinking and innovative as it could be in its approach to new housing stock?

 

  1. While it would not be appropriate for Amey to comment on the future requirements for military accommodation, which is a matter for the MoD, we believe that a regime where more is invested now to improve the underlying quality of the housing stock would be significantly more cost effective in the long term while also delivering the levels of service and support appropriate for Service personnel and their families.

 

  1. Amey is a business with a strong track record of managing complex public sector estates. Our model of full lifecycle infrastructure services, combined with our expertise in data-enabled solutions, mean we can guide our clients to more sustainable practices. This increased availability of data enables us to approach the maintenance and support of housing in a way that was not open to us or the DIO even a few years ago.

 

  1. We would welcome the opportunity to develop a stronger partnership style relationship with the DIO where adaptation and innovation could flourish.

 

Is enough being done to help personnel leaving service transition to civilian housing?

 

  1. While we are unable to offer a comprehensive assessment of the broader initiatives aimed at aiding personnel leaving military service in transitioning to civilian housing, we can expand on the robust support framework we have established to facilitate this transition.

 

  1. It is part of Amey’s DNA to actively support military leavers and veterans seeking new employment prospects. Through strategic partnerships with a range of employment stakeholders, we have successfully integrated ex-Service personnel into various levels of our company, including a strong representation on our Complex Facilities Executive Leadership Team.

 

  1. We proudly stand as signatories to the Armed Forces Covenant, recognising the invaluable skills possessed by ex-Service personnel, which seamlessly align with the demands of the infrastructure sector. This recognition forms the bedrock of our Armed Forces Plan, a comprehensive strategy designed to enhance the engagement of veterans and Service family members within our workforce. We wholeheartedly invest in mentorship, development opportunities and unwavering support for those transitioning from military service to civilian life.

 

  1. Over the past two years, our commitment has translated into the successful recruitment of 119 individuals through this programme. We have been awarded a Gold Distinction in the Defence Employee Recognition Scheme, as testament to our efforts in employing and assisting ex-Services personnel, military partners, cadets, reservists and veterans.

 

  1. We recently renewed our partnership with Buildforce, an industry-led initiative which serves as a bridge connecting Veterans and Service leavers with employment avenues within the construction sector. This partnership empowers us to directly engage with Service leavers and Veterans, actively promoting vacancies while also providing indispensable mentorship and work placement opportunities across our UK contracts. Since 2020, our role as a BuildForce Alliance Partner has enabled us to seamlessly integrate ex-Service personnel into key roles such as project managers, site managers, operations personnel, and electricians.

 

  1. As part of our commitment to social value, we are aligned to the UK Government's social value model. This engagement encompasses several key themes, including delivering technical skills workshops to support veterans, service leavers, and their families in becoming industry ready. Through these workshops, we aim to equip them with the necessary skills and knowledge to excel in their chosen fields, facilitating their successful transition into civilian life.

 

  1. We have also established an Armed Forces network within Amey. This network serves as a supportive platform for veterans, spouses, Service leavers, and those connected to the armed forces. It fosters a sense of camaraderie and provides a space to share experiences, advice, and insights. Members of the network tell us that the main benefit it provides is the invaluable peer support it offers. It creates a community of individuals who understand the unique challenges of transitioning from military to civilian life and provides a safe environment to seek guidance and encouragement from those who have walked a similar path. In our ongoing commitment to this mission, we have recently established a partnership with the Forces Transition Group. This strategic collaboration reinforces our proactive approach to supporting veterans and their spouses in securing gainful employment. By tailoring our support to the unique needs of each candidate, we aim to ensure a smooth and successful transition into civilian life.

 

  1. Our association with the Career Transition Partnership is another avenue through which we actively provide employment opportunities to Service leavers. Moreover, our commitment extends to advertising all available roles through Forces Families Jobs, amplifying our reach and accessibility to the military community.

 

  1. Furthermore, Amey was a founding partner of the social enterprise organisation e50K. Established in 2021, e50K provides support and funding for community schemes that work to enhance the physical environment within military communities. We continue to play an active role in the growth of e50k by providing sponsorship and facilitating key community initiatives that make a tangible, positive impact on the communities in which we operate.

 

  1. As we continue this journey of support, we remain dedicated to exploring new avenues and partnerships that align with our vision of facilitating a seamless transition for Service personnel into civilian housing and employment. We look forward to further engagement and collaboration in pursuit of this shared goal.

 

 

Conclusion

  1. Amey recognises there have been challenges in the mobilisation of the new contracts. In the past 12 months Amey has worked with DIO to significantly enhance service delivery, however underlying challenges remain, not least the basic quality of the housing stock in some areas. We feel there is huge potential to maximise the opportunities to take a more strategic and long-term view of the maintenance of military housing stock, which would result in more energy efficient, resilient housing and an improved quality of home for Service personnel and their families.

 

  1. We would welcome the opportunity to develop our model of full lifecycle infrastructure services further with the DIO and would encourage a stronger partnership approach with contractors where private sector expertise and innovation can help inform decision making.

 

  1. We would be happy to expand on any of the points contained in this submission with the Sub-Committee.

 

1 September 2023

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