The UK’s defence procurement system has long faced criticism for being too slow, complex, and costly—often described as “broken” by parliamentary committees. Major equipment programmes regularly run over budget and behind schedule, creating capability gaps and delaying delivery to the armed forces.
The Strategic Defence Review (SDR) 2025 seeks to change this. Initiated by the Labour government after taking office in July 2024, it marks the first such review by a Labour administration since 2003. The review is being led by Lord Robertson, former Defence Secretary and Secretary General of NATO, providing expert leadership and oversight. This contrasts with the previous review commissioned by the Conservative government, highlighting a significant political shift that is shaping the current defence strategy. As part of a wider reset of national defence policy, the SDR proposes fundamental reforms to accelerate the acquisition lifecycle—from initial concept through to contract award. Combined with the Procurement Act 2023, which establishes a simpler and more flexible legal framework, these reforms aim to deliver new capabilities “in months, not years”.
This article explores how SDR 2025 could transform UK defence procurement, the stages of the acquisition lifecycle it targets, and what these changes mean for suppliers. It also outlines how DCI Contracts helps businesses stay ahead of reform-driven opportunities—from concept to contract. Want to stay ahead of SDR 2025 reforms? Discover how DCI Contracts can give you a competitive edge.
What Is the Strategic Defence Review—and Why It Matters for Procurement
The Strategic Defence Review (SDR) is the UK Government’s periodic assessment of national defence strategy, priorities, and capabilities. SDR 2025 – “Making Britain Safer: Secure at Home, Strong Abroad” represents the most significant reset in more than a decade, designed to ensure Britain’s Armed Forces remain agile in an era of technological disruption and global instability. The SDR is subject to parliamentary oversight and approval, with parliament playing a key role in shaping defence policy and ensuring that strategic decisions align with national interests.
A central theme of the SDR is modernising defence procurement. The review calls for a “new partnership with industry” to equip the armed forces faster, boost UK industrial capability, and strengthen economic growth. It recognises that security and economic resilience are interdependent—and that speeding up procurement can achieve both.
The Government has also committed to increasing defence spending to 2.5% of GDP by 2027, underpinned by the new Procurement Act 2023. The Prime Minister and Defence Secretary have announced a plan to raise the defence budget as part of the current parliament’s agenda, with further targets for defence expenditure set for the next parliament. Together, these initiatives aim to streamline acquisition processes, cut bureaucracy, and create a unified system that allows defence programmes to move from proposal to delivery at pace.
For suppliers, the SDR provides clear direction: future procurement will prioritise speed, innovation, and partnership. Understanding these priorities will help industry align its strategies with emerging MoD requirements.
Mapping the Defence Acquisition Lifecycle
To engage effectively, suppliers must understand how the defence acquisition lifecycle operates. The Ministry of Defence (MoD) traditionally manages programmes using the CADMID model—an acronym for Concept, Assessment, Demonstration, Manufacture, In-Service, and Disposal.
“From concept to contract” covers the early stages of this cycle:
- Concept: The MoD works to identify the capabilities needed and potential solutions.
- Assessment: Feasibility and cost options are examined, leading to a “Main Gate” investment decision.
- Contract Award: Once approved, the project moves to development and manufacture, including the procurement of new equipment and defence equipment to meet operational requirements.
However, these early stages are where the biggest delays and cost overruns typically occur. Lengthy requirement definitions, excessive approval layers, and risk-averse cultures often stretch timelines from years to decades. Programmes such as the AJAX armoured vehicle have become cautionary tales—costing billions while delivering late or not at all.
The SDR aims to break this cycle by redesigning how defence programmes move from concept to contract. For suppliers, understanding each lifecycle phase and where bottlenecks arise enables better timing for engagement and bid preparation.
How SDR 2025 Could Reform the Procurement Process
SDR 2025 introduces a range of reforms to make procurement faster, more transparent, and outcome-driven. The reforms will also improve the management of procurement activities, ensuring better coordination and oversight across all stages of the process. These include:
1. The Integrated Procurement Model
Introduced in 2024, this model commits to delivering major equipment within five years of project start—and digital programmes in as little as three. By leveraging technology, the Integrated Procurement Model enables faster and more flexible procurement, supporting innovation and the adoption of advanced capabilities. It promotes spiral development, where minimum viable capabilities are deployed quickly and improved iteratively, instead of waiting for a “perfect” system.
2. Segmented Procurement by Complexity and Urgency
The MoD will categorise projects based on size and urgency:
- Major platforms – target contracting within two years
- Modular upgrades – within one year
- Rapid commercial or off-the-shelf solutions and essential services – within three months
This tailored approach ensures smaller, tech-driven procurements and critical services aren’t trapped in the same lengthy processes as large-scale shipbuilding programmes.
3. Early Industry Engagement
The SDR directs the MoD to engage suppliers early, focusing on desired outcomes rather than prescriptive specifications. This shift encourages collaboration, innovation, and more realistic project design—while reducing administrative burdens that have historically deterred SMEs. Early engagement also increases suppliers’ visibility of upcoming contract opportunities.
4. “One Defence” Governance
A new National Armaments Director will oversee all acquisition activity and industrial strategy, supported by a Military Strategic Headquarters that unifies service-level decision-making. This “One Defence” approach is intended to eliminate duplication, align priorities, and accelerate approvals across the Army, Navy, and Air Force.
5. The Procurement Act 2023
Taking effect in February 2025, the Act replaces multiple previous regimes with a single UK procurement framework. It introduces simpler, faster procedures, new transparency obligations, and enhanced flexibility for defence and security contracts. For suppliers, this means fewer barriers to entry, quicker competitions, and greater visibility of upcoming opportunities. The new framework will also simplify the process for awarding defence contracts, making it easier for suppliers to compete.
Together, these measures form a cohesive blueprint for a faster, more agile acquisition system. The MoD’s ambition is clear: projects that once took years to contract should, in future, be agreed within months.
From Strategy to Action: Turning Defence Concepts into Opportunities
Defence strategies such as SDR 2025 don’t just shape national security—they define where future procurement will focus. SDR 2025 marks a new era for the UK’s armed forces and the defence industry, driven by investments in emerging technologies and artificial intelligence to enhance warfighting readiness. Understanding how strategic objectives become actionable projects is vital for suppliers seeking to anticipate opportunities.
For example, SDR 2025 prioritises AI, cyber resilience, uncrewed systems, and munitions stockpiles. New investment in these areas is critical for maintaining operational advantage. Each priority begins as a strategic concept and evolves into tangible tenders—such as requests for autonomous vehicle trials or digital defence platforms.
The defence industry plays a crucial role in supporting the UK’s armed forces by adopting emerging technologies that strengthen national security. Suppliers who track this evolution can position themselves early, contributing to concept notes, market soundings, or industry engagement days. By aligning proposals with the language and intent of government strategy, companies demonstrate relevance and insight—traits highly valued by procurement teams.
Strategic alignment also extends to collaboration. With initiatives like AUKUS and the Global Combat Air Programme (GCAP), the UK is embedding multinational cooperation into procurement. Suppliers able to meet NATO standards or partner internationally will find increasing opportunity in this new environment.
DCI’s Defence Intelligence service helps suppliers stay alert to these signals, monitoring strategy updates and early-stage acquisition plans so businesses can act before competitors.
The Power of Supplier Engagement
Effective supplier engagement is central to SDR 2025’s vision of faster, smarter procurement. It is also a direct response to the government’s call for improved procurement processes, ensuring that stakeholder feedback and policy initiatives are addressed efficiently.
Early Engagement for Competitive Advantage
Involving industry from the outset helps the MoD clarify requirements and spot innovative solutions. For suppliers, it offers a chance to influence specifications, highlight feasibility constraints, and build credibility before tenders are released.
Companies that engage early can position their technologies as reference points—helping shape requirements that play to their strengths. This proactive involvement shortens later tender cycles and reduces misunderstandings that often cause delays.
Building a Stronger Supplier Network
Trust and communication underpin successful procurement relationships. SDR 2025 encourages a more collaborative culture between the MoD, primes, and SMEs. Suppliers can strengthen their standing by being transparent, reliable, and solutions-focused.
Engaging across the supply chain—through joint ventures, SME partnerships, or trade association events—also enhances visibility and resilience. DCI supports this by alerting users to market engagement events, pre-market consultations, and early-stage notices published by the MoD and key primes.
Navigating Tender Acquisition and the Contract Award Process
Once a project enters formal tender, precision and compliance become critical. Tendering is a crucial phase in the procurement process, involving the invitation and evaluation of bids to ensure competitive and compliant contract awards. The standard steps include:
- Requirement Publication: Review all documentation carefully, including annexes and scoring criteria.
- Pre-Qualification: Demonstrate financial stability, past performance, and relevant certifications such as Cyber Essentials Plus or ISO standards.
- Invitation to Tender (ITT): Align responses tightly to evaluation criteria, addressing value for money and social value as required.
- Clarification Period: Use Q&A windows to resolve ambiguities—this demonstrates diligence and prevents non-compliance.
- Evaluation and Award: Maintain transparency and accuracy. Winning bids combine technical capability with realistic delivery schedules and strong governance.
Under the Procurement Act 2023, the process should become simpler and more flexible, with more opportunity for dialogue and negotiation. For suppliers, agility and preparedness will be key to success. For tailored support in identifying and responding to live MoD opportunities, Schedule a demo today!
Strategic Procurement Under the Spotlight
SDR 2025 elevates procurement from a procedural task to a strategic capability. The MoD now expects procurement decisions to deliver not only operational outcomes but also industrial growth and regional investment. The UK’s strategic procurement decisions are increasingly shaped by its role in an unpredictable and complex world, where global dynamics and international threats require a comprehensive approach.
New governance reforms—particularly the National Armaments Director role—will ensure strategic priorities directly shape acquisition pipelines. Programmes like GCAP and domestic shipbuilding exemplify this integration of strategy, industry, and capability delivery.
For suppliers, the message is clear: those that demonstrate how their solutions advance the UK’s strategic objectives—through innovation, export potential, or economic benefit—will stand out in the reformed procurement environment.
Overcoming Key Challenges Ahead
Despite the ambition of SDR 2025, several enduring challenges remain:
- Cultural resistance: Reforming entrenched bureaucratic practices requires sustained leadership and accountability.
- Funding pressures: Economic conditions could test the pledge to increase spending to 2.5% of GDP.
- Technological complexity: As systems become more digital and software-driven, procurement models must adapt to iterative development.
- Transition risk: Moving to new legislation and procedures may create short-term uncertainty for both buyers and suppliers.
- Trust and transparency: The MoD must rebuild confidence through open communication and consistent delivery.
Suppliers that stay informed, agile, and collaborative will be best placed to navigate these shifts. DCI’s intelligence tools help businesses anticipate change—tracking procurement reforms, budget updates, and policy announcements so you can adapt your strategy accordingly.
How DCI Contracts Helps You Go from Concept to Contract
Navigating the evolving defence procurement landscape can be complex. DCI Contracts helps you move seamlessly from early insight to contract success through:
- Defence Intelligence: Continuous monitoring of MoD announcements, SDR-related programmes, and global defence news.
- Tender Alerts: Daily notifications of new and upcoming opportunities tailored to your business profile.
- Market Engagement Intelligence: Access to early-stage engagement notices, webinars, and partnership opportunities.
- Bid Support Resources: Award data, buyer analysis, and templates to help you build compliant, high-scoring proposals.
- Compliance Updates: Guidance on adapting to the Procurement Act 2023 and other regulatory changes.
By combining actionable intelligence with practical support, DCI ensures you are always one step ahead—ready to engage early, bid smartly, and win confidently.
Ready to strengthen your foothold in the UK defence market? Schedule your free demo
