£3 million to be saved as part of new Royal Navy deal
Defence Minister Harriett Baldwin has announced a range of new contracts, including one for consumable items, which is set to save £3 million in efficiencies and furnish a growing Royal Navy.
Defence Equipment and Support (DE&S) signed a contract with Babcock International Group, which will supply the Royal Navy with more than 10,000 different types of consumable items that will cover everything from fittings and fixtures to pistons and pumps.
The new contract is estimated to be worth around £107 million over the next seven years, during which time it is expected to deliver around a million individual items to all current and future Royal Navy vessels.
The deal will see around £3 million worth of savings generated for by bringing together eight older contracts under a new overarching management arrangement.
Minister for Defence Procurement Harriett Baldwin said: “The route is clear for the Navy’s largest and most powerful ship to dock at its home in Portsmouth, but even ships as impressive as our magnificent new aircraft carriers need nuts and bolts to keep them running smoothly. This new contract will provide all the supplies our ships and personnel require to be effective on operations.
“This also brings the previous contract under one deal, delivering improved efficiencies and highlighting how we are being smarter about support. These efficiencies are ensuring that our £178 million Defence equipment plan is going towards the state-of-the-art kit our Armed Forces deserve.”
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