The Defence Infrastructure Organisation (DIO) is entering one of its most transformative periods in recent history. With multiple high value programmes moving into early market activity in 2026/2027. Suppliers who are in water, wastewater and FM sectors should start to prepare for a decade of opportunity.
Across several government updates and market notices, the MoD is reshaping how its estate wide services are procured and delivered. This includes a complete overhaul of the long running Aquatrine water PFIs, major FM successor procurements under the PFI Replacement Programme and substantial enabling works at flagship defence sites. Here’s an overview of the changes:
The Defence Water Services Programme
The Defence Water Services Programme (DWSP) is the centrepiece of the upcoming pipeline. It will replace the three legacy Aquatrine PFI contracts due to expire between 2028 and 2030.
DWSP will transition these services into a single national Managed Service Provider model responsible for end-to-end water and wastewater operations across approximately 2,600 MoD sites.
FDIS successors and the future of FM delivery
Beyond water, DIO is also preparing for major FM successor contracts under the PFI Replacement Programme Phase Three. Currently, the following sites are in scope for successor FM arrangements:
- Northwood Headquarters
- MOD Main Building
- Devonport Naval Base (Armada)
- MOD Corsham
- Defence Academy Shrivenham.
Premarket engagement is expected during 2026, with full competitive tendering anticipated in 2027. These successor programmes will form part of the planned transition away from legacy PFIs toward modern, post FDIS FM models.
These establishments represent some of the most complex and high-profile assets in the defence estate and will require integrated, high capability delivery partners with robust technical, commercial and behavioural capacity.
Conclusion
The next few years represent a rare moment of large-scale opportunity in the defence water and FM markets. With DWSP moving toward a national MSP model, PFI successor FM contracts entering the pipeline and key sites preparing for redevelopment, suppliers will need strong strategy, early engagement and credible delivery capability.
For organisations seeking to position for success, now is the time to shape your partnerships, build evidence and prepare for competitive procurement cycles that will define service delivery for the next decade.
If you want to strengthen your strategy for this pipeline, CloudNine is ready to support you at every step – from work-winning strategy and bid positioning, to building credible social value propositions and partnering approaches that demonstrate collaboration across your supply chain.
Contact us today to find out more: [email protected].
