The UK Ministry of Defence accounts for over 40% of all central government spend with industry. The Department has a diverse range of requirements, including everything from military fighting vehicles to facilities management. MOD customers include our Armed Forces and national security agencies.
The MOD buys a wide variety of goods, services and solutions, ranging from clothing and food to satellite communication systems; from construction of buildings to provision of staff; and from musical instruments to medical products and services.
MOD contracts are not just awarded to large global defence suppliers like BAE Systems or Lockheed Martin. For a considerable number of MOD contracts, there is a wider network of businesses involved in the provision or delivery of the contract – this is called the defence supply chain. MOD contracts are typically awarded to Prime Contractors who will sub-contract to other suppliers, particularly SMEs. In fact, MOD Prime Contractor obligations state that sub-contractors must be paid within 30 days, so winning contracts with MOD Prime Contractors is equally lucrative and secure.
In recent years, the MOD has implemented changes in its procurement strategy to access new technologies and broaden the supplier base with both SMEs and non-traditional defence suppliers.
With the introduction of its SME Action Plan, the Department is currently spending £835 million per annum directly with small and medium-sized businesses, a figure which does not include the many opportunities which lie indirectly within the supply chain.
Jim Carter, Commercial Director Supply Chain at the Ministry of Defence, has engaged with the MOD’s major suppliers and “asked them to report SME spend through their supply chain.” This is something the MOD will continue to do on an annual basis.
With new opportunities continuing to open up to SMEs in the defence marketplace, learn more about how your business can win more MOD contracts with defence intelligence.Free DCI Trial
The latest figures from NATO show that the UK is one of only seven nations currently hitting the organisation’s 2% GDP spend guideline for defence.
The Ministry of Defence is the single largest industry buyer in the UK. With an annual current procurement spend in excess of £20 billion, there are projections that this spend is set to increase. Over the next ten years, the MOD is committed to spending at least 20% of its budget on defence equipment and support.
This strong commitment to building defence and security makes the UK a lucrative marketplace for suppliers from all over the world.
Benefits of working with the MOD
The MOD is the largest procurement organisation in central government, managing some of the most complex and technologically advanced requirements in the world.
For suppliers, the MOD offers a route to market and guaranteed payment with secure trading conditions.
The UK MOD operates on a global footing, and with DCI we can help potential suppliers realise opportunities in the defence sector through our suite of intelligent services tailored to the market.
Is your business already working with defence buyers and seeking to win more MOD contracts?
Our defence intelligence service streamlines the search for MOD contracts, saving suppliers within this marketplace time, resource and money and thereby facilitating maximum return on investment.
Early engagement is crucial to winning MOD contracts – knowledge is power. DCI supplies users with a wide range of data and insight from market news through to spend data and advanced notice of framework renewals.
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