Ministry of Defence Awards £1bn Contract to Support Royal Navy

The UK’s Ministry of Defence has awarded three contracts, with a combined value of £1bn, to Serco - a provider of critical government services - to support the Royal Navy with a variety of services including trialling new military technology, and assisting the movement of Royal Navy ships in and out of harbour. 

The three contracts that have been awarded to Serco are as follows: 

• A £850m contract over ten years for the delivery of in-port services for HMNB Devonport in Plymouth, HMNB Portsmouth, and for the Clyde (including HMNB Faslane). The contract includes the procurement of 24 vessels on behalf of the Royal Navy to provide vessel towage, passenger transfer, and barge and tank cleaning services.
   
• A £70m contract over five years for the provision of inshore support to military training and exercises at the British Underwater Test and Evaluation (BUTEC), an underwater military test and evaluation range off the northwest coast of Scotland.
   
• A £110m ten-year contract for the provision of offshore support to military training and exercises.

Commenting on the contracts, Anthony Kirby, Serco Group Chief Executive, said: 

“We are proud to have been awarded these three contracts and to have the privilege of continuing to provide critical operational services to the Royal Navy. These awards further strengthen our position in the defence market, where we provide deep expertise around the world. 

We have been performing these duties to an extremely high standard for the last 28 years, and we now have the opportunity to modernise the fleet of support vessels to ensure that the Navy has the support it requires, day in, day out, to enable it to keep our waters safe”.

These three contracts are the latest in a series of contract wins for Serco, with the company recently securing a £1bn ten-year contract to run a joint recruitment service for all UK military personnel. Serco has also recently secured a contract with the US Army Corps of Engineers to manage the modernisation of the back-up electrical plant at the US Space Force’s Pituffik Space Base in Greenland. 

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