Guidance

Doing Business with Defence

Updated 10 April 2024

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This publication is available at https://www.gov.uk/government/publications/mod-procurement-an-overview/doing-business-with-defence

Who we are

We are one of the biggest public procurement organisations in Europe and the single largest customer for UK industry. Over the next decade we are committed to spending over £190 billion on equipment and support. Our customers include both the armed forces and national security agencies, and we have a diverse range of requirements, including:

  • military fighting vehicles
  • education services
  • nuclear submarines
  • facilities management

Our aim is to ensure that our customers are provided with the best capabilities to enable them to protect the UK’s security and advance national interests, both now and in the long term. We encourage innovation and wider small and medium-sized enterprise (SME) participation throughout our supply chain. We continue to pursue policies and practices that make it easier for new and smaller businesses to identify, compete for and win opportunities with the MOD. This helps us to deliver our vision of a vibrant, sustainable, and competitive UK industrial base, while obtaining the best possible value for money for the taxpayer.

How we procure

As a public sector organisation we procure in a different way to industry, using competition where appropriate. We set objective tender selection criteria; we are fair and transparent, and we will be held accountable for procurement decisions in a way the private sector is not. We do not operate preferred supplier lists.

Our principles include:

  • non-discrimination
  • equal treatment
  • transparency (act in fair and non-discriminatory manner)
  • mutual recognition (of equivalent documents and standard)

The areas we work in

Defence Digital (DD)

DD is responsible for making sure that effective digital and information technology (D&IT) is put into the hands of the military and business front line. They lead on defensive cyber strategy, capability development and policy, whilst also supplying IT to 200,000 users across more than 2,000 defence sites in the UK and globally.

Defence Equipment and Support (DE&S)

DE&S manage a range of complex projects to buy, support and supply vital equipment and services that the Royal Navy, British Army and Royal Air Force need to operate effectively. Their programme of work ranges from jets and warships to armoured vehicles and field kitchens.

Defence Infrastructure Organisation (DIO)

DIO is the estate expert for defence, supporting the armed forces to enable military capability by planning, building, maintaining, and servicing infrastructure.

Submarine Delivery Agency (SDA)

SDA is an executive agency who manage the procurement, in-service support and disposal of UK nuclear submarines, which are some of the most complex equipment in the world. SDA deliver capabilities to the Royal Navy that are essential to the Continuous At Sea Deterrent (CASD), which is imperative for our national security.

Team Leidos

Leidos provide essential services such as storage and distribution for the MOD’s materiel, including a global freight service, procurement and inventory management of food, packed fuels, clothing, medical materiel and general supplies.

Defence Science and Technology Laboratory

The Defence Science and Technology Laboratory (Dstl) ensures that innovative science and technology contribute to the defence and security of the UK. Dstl supply sensitive and specialist science and technology services for the MOD and wider government.

The size and complexity of many of our projects means that we need to work closely with [our major suppliers] to ensure delivery of the defence programme.  Opportunities therefore exist for suppliers of all sizes, from large established defence contractors through to innovative smaller businesses, to get involved in our procurement activity both as a prime supplier and as a sub-contractor.

Opportunities for business

There are exciting opportunities for new, non-traditional and adjacent sectors to do business directly with the MOD, and indirectly with our major suppliers at sub-contract level. The programmes we support are detailed in the defence equipment plan, which includes equipment, infrastructure and the defence estate.

Defence Sourcing Portal

The Defence Sourcing Portal (DSP) is an e-sourcing platform for contract opportunities, tendering, and information on doing business with the MOD.

We advertise tender and contract opportunities valued over £10,000 on the DSP. Access and registration to bid for MOD opportunities on the DSP is free of charge, and suppliers are also able to publish their sub-contracting opportunities on the portal. DSP also hosts important announcements for industry. Suppliers will be sent alerts via email with opportunities that are relevant to their industry, as well as emails informing them of market engagement events, webinars and MOD announcements that may be of interest.

Contracts Finder

We also advertise on the government’s Contracts Finder portal. Here, central government departments and other public bodies advertise tender and contract opportunities valued at £10,000 and above. Access to Contracts Finder is free of charge.

Find a Tender service

Information on public sector contract opportunities in the UK is published on the Find a Tender service (FTS): 

  • FTS is free to use and replaces the role of Tenders Electronic Daily (TED): the Official Journal of the EU (OJEU), for procurements in the UK

  • FTS works alongside existing procurement portals such as Contracts Finder and DSP, which can be used to access a wide range of opportunities to supply the public sector 

Requirements with a value of less than £10,000 are not normally advertised; MOD procurement teams undertake a market survey and select suppliers based on the best value for money.

Crown Commercial Service

We buy common goods and services via the Crown Commercial Service (CCS) wesbite. CCS are the biggest public procurement organisation in the UK, and they provide a wide range of common goods and services across the public sector.

CCS commercial agreements include frameworks that comprise common public sector requirements, a list of suppliers who have been evaluated as capable of delivering the requirements and standard contract terms. Frameworks can be divided into ‘lots’ by product or service type. You can supply to one or more lots, or an entire framework.

SME action plan

SMEs are at the heart of the UK defence industry. However, we acknowledge that SMEs face unique barriers preventing them from fulfilling their potential of delivering both defence capability and contributing to UK prosperity. To improve engagement with SMEs, the MOD published its second SME Action Plan on 27 January 2022.

In the plan, we set out how we will collectively improve the engagement we have with SMEs. We want to encourage acquisition teams to make it easier for SMEs to do business with defence, and to ensure that commercial strategies enable SMEs to be appropriately considered at every stage of the acquisition process.

Hellios SME Portal

The Hellios SME Portal has been created in collaboration with the joint supply chain accreditation register (JOSCAR). In response to the SME action plan, it aims to improve visibility of SMEs to buyers across defence, aerospace and security sectors.

The portal is a free platform for SME suppliers to register their products and services for buyers, allowing them to showcase their capabilities to JOSCAR prime contractors and defence HQ.

Framework library

The MOD has published an MOD framework library, which provides information on key purchasing agreements to raise awareness about opportunities. These help to improve access and overcome barriers when doing business with defence. This aligns with our SME action plan, in which we commit to helping to improve the way defence works with smaller businesses.

Procurement pipelines

Procurement pipelines are published where available to inform existing and potential suppliers of plans to purchase, and enabling the supply chain to better plan their activities and offer reassurance of future work packages.

The MOD acquisition pipeline is published on GOV.UK, and under ‘MOD Acquisition Pipeline’ on the DSP. This is a chance for industry to see where the MOD are planning to spend their money in the next 12 to 18 months, and will allow companies to prepare, and be able to bid for contracts as soon as they go live.

DIO

DIO updated their DIO procurement pipeline in October 2022, informing existing and potential suppliers of what DIO plans to buy on behalf of its customers. The publication of the pipeline supports DIO’s commercial principles of being easier to do business with, while building a broader and more diverse supplier base, including SMEs. The pipeline is updated quarterly.

Leidos

Leidos publish their Leidos procurement pipeline with separate tabs; one for opportunities in the next 6 months, and another for those in more than 6 months.

Innovation in the defence supply chain

We want to encourage innovation in our business and attract new and non-traditional suppliers to the defence supply base, both directly with the MOD and with our major suppliers. Our customers have put innovation high on their agenda, and we expect this to be reflected in their future requirements. Technology is creating both threats to, and opportunities for the UK’s security and prosperity. Innovation is vital to maintaining our military advantage.

We have set up a new innovation fund (£800 million over 10 years, beginning September 2016) to encourage better collaboration with industry, academia and allies. It targets new providers to boost the competitive advantage of UK defence, and find answers to our most pressing national security questions from across sectors at pace. There are a number of organisations which support innovative ideas from suppliers, and these include the following.

Defence and Security Accelerator

The Defence and Security Accelerator (DASA), co-located with the Dstl, focuses on innovations which can provide advantage to defence and national security to protect the UK from its adversaries. It funds the development of suppliers’ innovative ideas, and provides support through to potential application. The accelerator will also fund innovations for defence and security which support economic growth and prosperity in the UK.

DASA funds innovation through two main mechanisms: ‘open call’ offers suppliers the opportunity to submit ideas to defence and security stakeholders; while ‘themed competitions’ mean suppliers can submit proposals around specific government areas of interest.

More information can be found on the DASA apply for funding page.

Ideas marketplace

DASA have launched the ideas marketplace, an online networking platform where UK innovators can discuss, collaborate and share ideas with like-minded users to overcome defence and security challenges, and help deliver the next generation of defence and security tools and services.

The ideas marketplace is designed to enable innovative UK organisations to easily engage with the best people in defence and security. It encourages collaboration between organisations of all shapes and sizes, to foster new and dynamic relationships and make innovations a success.

Defence Technology Exploitation Programme

The Defence Technology Exploitation Programme (DTEP) is a £16 million programme designed to boost the defence innovation of SMEs. It brings together the innovation of SMEs, the resources of big suppliers and initial funding from government to allow pioneering projects to flourish.

Dstl

Dstl is one of the principal government organisations dedicated to science and technology in the defence and security field. Dstl supplies specialist services to the MOD and wider government, working collaboratively with external partners in industry and academia worldwide to provide expert research, specialist advice and invaluable operational support. One of Dstl’s responsibilities is to provide expert advice, analysis and assurance on defence procurement.

SME Searchlight

Dstl is committed to working with a wider range of innovative SMEs. This is underpinned by SME Searchlight to attract SMEs and non-traditional defence suppliers. Some of their initiatives include:

R-Cloud

Dstl have set up R-Cloud, a dynamic purchasing system that suppliers of science and technology can sign up to and access opportunities from across the MOD. Companies can join at any time during the R-Cloud term, and receive targeted invitations to bid for opportunities tailored to key capabilities and skills.

The Future Capability Group

The Future Capability Group (FCG) aims to provide front line commands (FLC) and DE&S with an improved and expanded delivery capability for innovation projects and new technologies.

Futures Lab

Futures Lab is a DE&S-FCG-sponsored service, created to inform and accelerate future capability decisions through the provision of impartial insights and knowledge from leading experts across industry and academia. Futures Lab commercially enables early engagement with SMEs, academia, and industry as they provide solutions to complex MOD challenges. If you are interested, there is a Futures Lab introduction session every Monday.

The Defence Growth Partnership

The Defence Growth Partnership (DGP) is a unique collaboration between UK government and leading companies from the UK defence industry. It has been formed to meet the challenges of increased international competition for defence business, and has created a collaborative environment to enable the UK to offer the best solutions to defence customers tailored to meet global customer needs, including the MOD.

UK Defence Solutions Centre

The UK Defence Solutions Centre (UKDSC) has been created as part of the implementation plan for the DGP, and jointly funded by government and industry. The UKDSC works closely with the MOD; the Department for Business, Energy & Industrial Strategy (BEIS); the Department for International Trade – UK Defence & Security Exports (DIT DSE), the UK defence industry and academia.

Innovate UK

Innovate UK is part of UK Research and Innovation, a non-departmental public body funded by a grant-in-aid from the UK government. They drive growth by working with companies to de-risk, enable and support innovation. They connect businesses to the partners, customers and investors that can help them turn ideas into commercially successful products, services and business growth. They also fund business and research collaborations to accelerate innovation and drive business investment into research and development. Support is available to businesses across all economic sectors, value chains and UK regions.

Knowledge in Defence

Knowledge in Defence (KiD) defines how we conduct, govern, and control our defence acquisition process. It is the primary bearer of all policy and guidance governing defence’s project delivery and commercial functions. We’re making public sector procurement simpler and more transparent, e.g. through acquisition reform, and introducing simplified plain English short-form contracts for use in low value, less complex procurements. KiD provides the information, guidance and instruction that set out how the MOD conducts acquisition business.

Selling to government guide for SMEs

The Cabinet Office has released a selling to government guide for SMEs. The guide supports SMEs that want to bid for government contracts, including opportunities in the defence sector, either directly or in the supply chain. It also offers top tips on bidding, where to look for contract opportunities, and signposts to further information.

Social value

Social value is the consideration of the social, economic and environmental impact of our projects and programmes. It has a lasting impact on individuals, communities and the environment. The government has significant opportunity and responsibility to maximise social value benefits effectively and comprehensively through its commercial activity.

In September 2020, the Cabinet Office published the Procurement Policy Note (PPN) 06/20, requiring additional social value benefits to be explicitly evaluated in all central government procurement (where the requirements are relevant and proportionate) rather than just ‘considered’ as previously required. The ‘Social Value Model’ set out in the PPN requires a minimum of 10% of the total tender evaluation weighting to be allocated to specific social value criteria.

Further information can be found on the Procurement Policy Note (PPN) 06/20 page, with links to:

  • Procurement Policy Note (PPN) 06/20

  • the ‘Social Value Model’

  • a guide to using the ‘Social Value Model’

  • ‘Social Value Model’ quick reference table

Other useful information

UK Defence and Security Exports

UK Defence and Security Exports (UKDSE) is part of the Department for International Trade. UKDSE provide specialist export advice and practical assistance, working closely with industry and government departments including the MOD, the Home Office and the Export Control Joint Unit.

The UK Defence and Security Exports SME support team provide and support a wide range of events and activities designed to help UK SMEs win overseas defence and security business.

Cyber Security

The National Cyber Security Centre (NCSC) has brought together expertise from Communications Electronics Security Group (CESG) (the information assurance arm of Government Communications Headquarters (GCHQ); the Centre for Cyber Assessment, Community Emergency Response Team (CERT-UK), and the Centre for Protection of National Infrastructure. The NCSC provides a single point of contact for SMEs, larger organisations, government agencies and departments, and the general public. We also work collaboratively with other law enforcement, defence, the UK’s intelligence and security agencies, and international partners.

The Defence Cyber Protection Partnership (DCPP) is a collaboration between the MOD, industry, and other government departments. The Cyber Security Model (CSM) is a risk-based proportionate approach to protecting MOD data in the supply chain. It will also help to protect companies against data theft and ransomware. Since 2017, It has been mandated across all MOD contracts.

Security policy

Accreditation

Facility security clearance (formerly List X)

Cyber security model

Security clearances

Links to the following documents can be found on the Industry Security Notice (ISN) GOV.UK page:

  • MOD ICT security accreditation and the defence assurance risk tool (DART)

  • Procedure for UK contractors without a Facility Security Clearance (FSC)

  • Cyber Security Model – Interim Process in support of DEFCON 658

Our major suppliers

Services

Strategic supplier management, doing business with defence team:

Spruce 3b, 1301
MOD Abbey Wood
Bristol
BS34 8JH

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