01/10/2014

MoD Awards £3.2bn Of Naval Base Contracts

The Ministry of Defence (MoD) has awarded £3.2bn of contracts to support the management of naval bases in the UK.

The contracts will also cover the maintenance and repair of the Royal Navy's warships and submarines, sustaining more than 7,500 jobs.

Babcock, which manages naval bases at Devonport and Clyde, has been awarded a £2.6bn contract, while BAE Systems, which manages Portsmouth Naval Base, has been awarded a £600m contract.

Around 1,500 jobs will be sustained at Clyde Naval base, up to 4,000 jobs at Devonport Naval Base for Babcock, and more than 2,000 jobs at BAE Systems at Portsmouth.

Welcoming the announcement, 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.

"As a former Minister for Portsmouth I know how important naval bases are for the local economies so I am delighted that these contracts have been awarded."

Bernard Gray, MOD's Chief of Defence Materiel, added: "These contracts are another example of how MOD is delivering on its major procurement programmes and finding both the right deal for the armed forces and driving down costs.

"The three naval bases in the UK play a vital role in the defence of this country and in the economic well-being of the regions in which they are located."

The agreement, which brings five existing contracts under one framework, will see more than £350m of savings secured, it is understood.

(JP/CD)

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