Thousands of jobs have been secured with today’s announcement that the MoD has awarded contracts worth £3.2bn to manage naval bases and maintain warships.
Babcock, which manages the naval bases at Faslane and Devonport, has been awarded a £2.6bn contract, while BAE Systems, which manages the Portsmouth base, has been awarded an £600m contract.
The deal, which brings five existing contracts under one framework, was described as ‘excellent value for money’ in an MoD statement which said it represented £350m of savings but would sustain around 1,500 jobs at HMNB Clyde.
Argyll and Bute MP Alan Reid welcomed the news, saying: “This is great news securing 1,500 jobs at Faslane and shows the benefits of staying in the UK.
“If Scotland had voted to leave the UK, these 1,500 jobs would no longer be at Faslane”.
And Commodore Keith Beckett, Naval Base Commander HMNB Clyde, said: “Over the remainder of this decade, the contract with Babcock Marine will support the growth in activity at the site as we transition to the single integrated submarine operating base, and will continue to support the other base ported units such as 43 Commando Royal Marine and the seven Sandown Class Mine Countermeasures Vessels.”
The Babcock contract is for five and a half years, running from today until March 31 2020.
The BAES MSDF framework contract is for four and a half years running from 1 October 2014, with an additional optional year which can be placed at the MoD’s sole discretion.
The £350m savings, of which £250m will be from Babcock, are over the life of the contracts.