£3 million to be saved in new deal to supply the Royal Navy

The Defence Minister has announced a new contract for consumable items which is set to save £3 million in efficiencies and furnish a growing Royal Navy.

Harriett Baldwin has announced a range of new contracts, including one set to save £3 million, and three agreements to support world-leading radar systems used by the UK’s Armed Forces.

Defence Equipment and Support (DE&S), part of the UK Ministry of Defence (MOD), has signed an innovative contract that will supply the Royal Navy with more than 10,000 different types of consumable items, covering everything from fittings and fixtures to pistons and pumps.

The Defence Minister said the award, given to Babcock International Group, will keep the Royal Navy’s current and future warships, including the new Queen Elizabeth Class aircraft carriers, supplied with items essential for day-to-day maintenance and operations.

The new contract is estimated to be worth around £107 million over the next seven years.

The signature secures seven jobs at Babcock International with additional jobs secured at 11 companies across the wider UK supply chain.

The contract is also set to generate savings of around £3 million for the taxpayer by bringing together eight older contracts under a new overarching management arrangement.

Harriett Baldwin, Minister for Defence Procurement, said: “The route is clear for the Navy’s largest and most powerful ship to dock at its home in Portsmouth, but even ships as impressive as our magnificent new aircraft carriers need nuts and bolts to keep them running smoothly. This new contract will provide all the supplies our ships and personnel require to be effective on operations.

“This also brings the previous contract under one deal, delivering improved efficiencies and highlighting how we are being smarter about support. These efficiencies are ensuring that our £178 million Defence equipment plan is going towards the state-of-the-art kit our Armed Forces deserve.”

Whilst speaking in Portsmouth, the Defence Minister also announced that BAE Systems have been awarded contracts worth £72 million to support radar systems on board the Royal Navy’s ships.

Two of the contracts support the Sampson Multi-Function Radar. Operational on board the Type 45 Destroyers, the radar provides surveillance and dedicated tracking in a single system, enabling the ship to defend itself and other ships in its company from attack.

A five-year contract covering technical support was amongst the announcements. That involves on-board maintenance, spares and repairs management at BAE Systems’ Cowes site on the Isle of Wight, supporting 255 jobs. The radar will also have its processing hardware updated as part of the announcements.