UK Ministry of Defence Awards £3.2 Billion Contracts

The UK Ministry of Defence has awarded £3.2 billion (USD 5.18bn) of contracts to support the management of the UK’s naval bases.

The contracts will also cover the maintenance and repair of the Royal Navy’s warships and submarines.

Babcock, which manages Her Majesty’s Naval Bases at Devonport and Clyde, has been awarded a £2.6 billion (USD 4.2bn) contract, while BAE Systems, which manages Portsmouth Naval Base, has been awarded a £600 million (USD 971m) contract.

The contract will sustain around 1,500 jobs at Clyde Naval Base and up to 4,000 jobs at Devonport Naval Base for Babcock, and more than 2,000 BAE Systems jobs at Portsmouth.

Defence Secretary Michael Fallon said: ”This huge investment in our naval bases will directly sustain more than 7,500 jobs and skills across the UK, and ensure that the Royal Navy’s fleet of 56 warships and submarines are in the best possible condition and available for operations.

Following the £3.5 billion Scout armoured vehicle contract, this is the second biggest defence contract placed by this government and reflects our commitment to giving our armed forces what they need to keep Britain safe.”

BAE Systems has been delivering services under the Warship Support Modernisation Initiative for the last 12 years, and the Surface Ship Support Programme since 2011.

Portsmouth Naval Base will be developed following significant Government investment in the infrastructure of the site, upgrading and improving facilities and services, and providing a long term future for Portsmouth.

This will provide the basis for integration of services to support ships, and it will provide a vehicle to support future classes including the Queen Elizabeth Class Aircraft Carriers.