Estate manager Defence Infrastructure Organisation market tested the idea of bringing in a specialist to help streamline the capital investment programme several months ago.

This is understood to have attracted interest from outsourcing giants Serco, Capita, Babcock, and CH2M Hill.

It has now launched a formal procurement process to test whether a strategic business partner could help it in:

· Managing DIO’s operations and staff, initially as part of DIO’s existing organisation

· Develop and implement a strategic asset management plan to increase the utilisation of the estate, which will lead to rationalisation and commercialisation opportunities

· Further developing and implementing the transformation of DIO

· Managing existing and new suppliers and other third party arrangements

· Develop contracting strategies to drive further efficiencies and deliver better value for money for the MOD across its estate

Andrew Manley, chief executive, DIO, said: “Since DIO was formed last year we have been at the forefront of the wider reform going on across this department.

“During that time we have achieved a significant amount and I believe a strategic business partner could take DIO another step closer to becoming a world-class public sector infrastructure delivery organisation.

“Over the coming months we will be considering whether a strategic business partner can help us continue, and build upon, the transformation programme that we have already made significant progress on, and will enable us to deliver Strategic Defence and Security Review savings.”

The final say on whether to appoint a partner to bring in efficiencies will still rest with the MoD and HM Treasury.

The departments will assess at a later stage whether the move offers best value for money and meets any legislative requirements.