News story

Preferred bidder to run Defence Support Group announced

The MOD has today announced the preferred bidder for the Defence Support Group’s land business as Babcock.

This was published under the 2010 to 2015 Conservative and Liberal Democrat coalition government

A Challenger 2 Tank (library image) [Picture: Ross Fernie RLC, Crown copyright]
A Challenger 2 Tank (library image)

The Strategic Defence & Security Review White Paper published in October 2010 by the Prime Minister announced the government’s intention to sell the Defence Support Group (DSG).

This was in order to reduce MOD’s running costs and focus resources on the front line.

The sale also gives DSG access to the investment required to grow and transform the services it provides to the armed forces.

A buyer will continue to provide the front line with DSG’s capabilities to maintain and repair key military equipment and manage the storage of the land vehicle fleet. And, if necessary, deploy personnel to provide in-theatre support to UK military operations overseas.

A Warrior infantry fighting vehicle
A Warrior infantry fighting vehicle on exercise in Canada (library image) [Picture: Paul Morrison RLC, Crown copyright]

Minister for Defence Equipment, Support and Technology, Philip Dunne, said:

Today’s announcement is a key milestone in the sale process, and we remain on schedule to complete the sale of the Defence Support Group by the end of March next year.

This has been a competitive process which is on track to deliver improved vehicle availability for the British Army at better value to the taxpayer over years to come.

I expect to be in a position to release further details of the winning proposition in the New Year once contract negotiations have concluded.

Published 19 November 2014