MoD delays Cyprus contract decision to 'complete analysis of the offers'

The Ministry of Defence (MoD) has delayed the awarding of a £200m contract to support British servicemen in Cyprus as officials take extra time to evaluate the bids.

"Project Wavell", which includes a number of support services such as looking after grounded aircraft, was due to select a preferred bidder on 19 February. However, the decision will now be finalised on 17 March.

Landmarc, a joint venture between Britain's Interserve and America's CSC; Ftse 100 giant Serco; and VT Group, which is currently the subject of a takeover attempt (see above) are in the running for the contract.

An MoD spokesman said: "We are delaying this decision to complete our analysis of the competing offers and ensure the best possible quality of services and value for money."

There have been industry fears that the MoD would decide to keep the contract, which covers the Akrotiri and Dhekelia sovereign bases on the island, in-house.