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BAE Systems secures £1.3bn maritime support contract
BAE Systems will retain its key role supporting the Royal Navy at Portsmouth Naval Base, with the company securing two contracts as part of the MOD’s Future Maritime Support Programme (FMSP) competition. The contracts, worth up to £1.3bn over five years, will commence on 1 October 2021 following a transition period.
BAE Systems will continue to deliver ship asset management, repair and maintenance for the entire Portsmouth flotilla under a £900m contract. It will also establish a joint venture with KBR to deliver technology-led and data-driven facilities management and dockside services at the base, under a £365m contract. The joint venture – to be called KBS Maritime – will combine the expertise of KBR as a global leader in the infrastructure asset management and services market, with BAE Systems’ experience and capability within Portsmouth Naval Base.
David Mitchard, managing director of BAE Systems’ Maritime Services business, said: “These new contracts will enable us to continue our vital role in supporting the Royal Navy, at home and abroad, building on our long history of delivery, investment and collaboration at Portsmouth Naval Base.
“Working with our customer, we’re proud of the improvements we’ve made at the base, delivering significant infrastructure improvements and reducing carbon emissions by 65%. We’re excited by the opportunity to continue delivering transformation alongside KBR and other new service providers to support the Royal Navy at Portsmouth, mitigating environmental impact of operations, whilst maintaining critical military outputs.”
The first of the FMSP contracts secured by BAE Systems (ship engineering delivery and management) covers class output management (strategy), design services (technical planning and design) and ship engineering (maintenance, repair and upgrade).
The second contract (hard facilities management & alongside services) covers strategic estate management, infrastructure programme development and delivery and provision of operations, maintenance and alongside services. KBS Maritime will further develop the Portsmouth base infrastructure, securing investment in the local community and ensuring fit-for-purpose, world-leading naval fleet support for the Royal Navy and the UK.
BAE Systems and its legacy companies have supported the Royal Navy at Portsmouth Naval Base for more than 20 years, with the last seven years successfully delivering the Maritime Support Delivery Framework (MSDF) as part of Team Portsmouth. Under this contract, BAE Systems has managed the entire Portsmouth Naval Base estate and supported the Portsmouth-based flotilla.
As well as improving ship delivery, and through a successful partnership with the MOD, BAE Systems has helped deliver a number of major improvements to the base under MSDF, including a new centre of specialisation for aircraft carriers. It has also helped reduce carbon emissions from approximately 100,000 tonnes to 35,000 tonnes per year over the last 15 years, supported by the creation of a state-of-the-art combined heat and power (CHP) plant and the introduction of electric vehicles to the base.