BAE Systems secures Future Maritime Support Programme contracts worth over £1 billion

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 Ministry of Defence’s (MOD) Future Maritime Support Programme (FMSP) competition. The contracts, worth up to £1.3 billion 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 £900 million 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 £365 million 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 a proud heritage of supporting 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. These include a Centre of Specialisation for Aircraft Carriers, major improvements to 14 and 15 dock and creation of a new D lock. The Company 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 to supply power to the Aircraft Carriers and the introduction of electric vehicles to the base. The Company has also helped the customer to develop its carbon profile and roadmap for Portsmouth Naval Base, and will support the implementation of the roadmap to achieve the MOD’s net zero goals by 2050.

he results of the FMSP competition (as it relates to Portsmouth Naval Base and its surface flotilla) are as follows:

  • Ship Engineering Delivery and Management Portsmouth: Covering ship maintenance, ship repair and ship upgrade. BAE Systems will continue to deliver all aspects of Ship Delivery for the Queen Elizabeth Class Aircraft Carriers, Type 45 Destroyers, Type 23 Frigates, patrol and mine countermeasure vessels, and others.
  • Hard Facilities Management & Alongside Services: Including strategic estates management, development and delivery of the infrastructure programme and provision of maintenance and dockside services. BAE Systems successfully bid for this this contract jointly with KBR.
  • Warehousing & Distribution: BAE Systems did not compete for this contract, which has been awarded to Kuehne & Nagel.
  • Soft Facilities Management: This contract covers services such as catering, cleaning and transport. BAE Systems did not compete for this contract which has been awarded to Sodexo.

From 1 October 2021 the MSDF contract will be superseded by FMSP – the new framework under which the Portsmouth, Clyde, and Devonport Royal Navy bases, and the surface flotilla at home and abroad, will be managed and supported. Through FMSP, the MOD is seeking to drive safety, cost savings, improved performance, and improved retention of Suitably Qualified & Experienced Personnel (SQEP). The MOD divided management of Portsmouth Naval Base and its flotilla into a number of ‘Lots’ which it put to tender in 2019. During the next six months of transition to FMSP, BAE Systems will work with the new providers in Portsmouth Naval Base to ensure a smooth transfer of employees to their businesses.

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