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The contracts will also cover the maintenance and repair of the Royal Navy’s warships and submarines, directly sustaining more than 7,500 jobs across the UK.
Babcock, which manages Her Majesty’s Naval Bases at Devonport and Clyde, has been awarded a £2.6 billion contract, while BAE Systems, which manages Portsmouth Naval Base, has been awarded a £600 million contract.
The deal, which brings 5 existing contracts under one framework, represents excellent value for money for MOD and the UK taxpayer, with over £350 million of savings secured.
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.
The First Sea Lord, Admiral Sir George Zambellas, said:
These significant contracts represent a strategic investment in the Royal Navy’s essential infrastructure.
Without the stalwart and tireless support provided by each of the 3 naval bases ashore, the ships and submarines of the Royal Navy would not be able to deploy as a credible, strategic and global presence at sea.
Bernard Gray, MOD’s Chief of Defence Materiel, said:
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 3 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.