Member Article

BAE Systems secures £46m submarine contract

British defence firm BAE Systems, has secured a major contract with the Ministry of Defence (MOD).

The deal will see the £46m development of a “submarine combat system”, whereby BAE’s maritime unit will be responsible for the support, design and maintenance of MOD’s submarine fleet for the next 10 years.

Within the Design Services Arrangement (DSA) laid out between the firm and MOD, BAE Systems will also be required to provide a Common Combat System mechanism across all Royal Navy submarines.

BAE’s deal with the government department will replace a series of combat system contracts, and MOD hopes this single deal will allow for more flexibility to “meet evolving priorities within the Fleet.”

The contract announced last week will bring down the price of training for the MOD, and will also have cost benefits for maintenance and updates to its vessels.

For BAE Systems Maritime, the stability involved in the MOD contract will allow it to invest in its people and maintain resources, while consolidating its role as a leader in submarine combat system design.

Combat Systems Director Ian Hawkes said: “The Design Services Contract provides Maritime – Submarines with a great opportunity to collaborate with the MOD to sustain the design, development and support for current and future combat systems.

“A 10 year contract provides the longevity to innovate and provide cost effective solutions to maintain the fight capability of Royal Navy submarines.”

Minister for Defence Equipment, Support and Technology Philip Dunne said: “The UK’s submarine fleet is second to none and plays a key role in protecting our waters and interests both at home and abroad.

“This latest commitment to maintain and develop this vital technology throughout the fleet will ensure that we can continue delivering first class capability for many years to come.”

BAE Systems said its bases in Ash Vale, Surrey and Weymouth in Dorset will especially benefit from the transaction, as the company’s teams will have a secure role, while DSA will also support a small Farnborough-based team.

This was posted in Bdaily's Members' News section by Miranda Dobson .