BAE Systems Lands Over £1 Billion in Contracts for Next-Gen Maritime Support Program

BAE Systems will maintain its crucial role in supporting the Royal Navy at Portsmouth Naval Base, with the Company securing two agreements as part of the Ministry of Defence’s (MOD) Future Maritime Support Programme (FMSP) competition. The agreements, valued at up to £1.3 billion over five years, are set to commence on 1 October 2021 following a transitional phase.

BAE Systems will persist in offering ship asset management, repair, and maintenance for the entire Portsmouth fleet under a £900 million contract. Additionally, it will form a Joint Venture with KBR to deliver technology-driven and data-centric facilities management and dockside services at the base, under a £365 million contract. The joint venture, named KBS Maritime, will merge KBR’s expertise as a global frontrunner in infrastructure asset management with BAE Systems’ proficiency and resources within Portsmouth Naval Base.

David Mitchard, Managing Director of BAE Systems’ Maritime Services division, stated: “These fresh contracts will empower us to continue our essential role in supporting the Royal Navy, both domestically and internationally, enhancing our long-standing tradition of delivery, investment, and collaboration at Portsmouth Naval Base.

“In collaboration with our client, we’re proud of the advancements we’ve achieved at the base, implementing significant infrastructure upgrades and reducing carbon emissions by 65%. We’re thrilled about the chance to keep delivering transformation alongside KBR and other new service providers to support the Royal Navy at Portsmouth, alleviating the environmental impact of operations while maintaining critical military outputs.”

The first of the FMSP contracts acquired by BAE Systems (Ship Engineering Delivery and Management) encompasses 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) pertains to strategic estate management, development and implementation of infrastructure programs, along with the provision of operations, maintenance, and dockside services. KBS Maritime will further enhance the infrastructure at Portsmouth base, securing investment in the local community and ensuring world-class naval fleet support for the Royal Navy and the UK.

BAE Systems and its predecessor companies have a notable legacy of assisting the Royal Navy at Portsmouth Naval Base for over 20 years, having proficiently delivered the Maritime Support Delivery Framework (MSDF) as part of Team Portsmouth over the last seven years. Under this agreement, BAE Systems has managed the entire Portsmouth Naval Base estate, supporting the local flotilla.

In addition to enhancing ship delivery, and through a fruitful partnership with the MOD, BAE Systems has contributed to numerous major advancements at the base under MSDF. These improvements include a Centre of Specialisation for Aircraft Carriers, significant upgrades to docks 14 and 15, and the creation of a new D lock. The company has also helped decrease carbon emissions from about 100,000 tonnes to 35,000 tonnes annually over the last 15 years, facilitated by the establishment of a cutting-edge Combined Heat and Power (CHP) plant to supply energy to the Aircraft Carriers and the introduction of electric vehicles at the base. Moreover, the company has aided the customer in developing its carbon profile and roadmap for Portsmouth Naval Base and will assist in implementing the roadmap to achieve MOD’s net-zero ambitions by 2050.

The outcomes of the FMSP competition (regarding Portsmouth Naval Base and its surface flotilla) are as follows:

• Ship Engineering Delivery and Management Portsmouth: Encompasses ship maintenance, repair, and upgrade. BAE Systems will persist in delivering all aspects of Ship Delivery for the Queen Elizabeth Class Aircraft Carriers, Type 45 Destroyers, Type 23 Frigates, patrol and mine countermeasure vessels, among others.
• Hard Facilities Management & Alongside Services: Incorporates strategic estate management, development, and execution of the infrastructure program, alongside maintenance and dockside services. BAE Systems successfully competed for this contract in partnership with KBR.
• Warehousing & Distribution: BAE Systems did not bid for this contract, which has been awarded to Kuehne & Nagel.
• Soft Facilities Management: This contract covers services including catering, cleaning, and transportation. BAE Systems did not compete for this contract, which has been awarded to Sodexo.

Beginning 1 October 2021, the MSDF contract will be replaced by FMSP – the new framework under which the Portsmouth, Clyde, and Devonport Royal Navy bases, along with the surface flotilla both domestically and internationally, will be managed and supported. Through FMSP, the MOD aims to enhance safety, achieve cost efficiencies, elevate performance, and improve the retention of Suitably Qualified & Experienced Personnel (SQEP). The MOD segmented the management of Portsmouth Naval Base and its flotilla into several ‘Lots’ that were tendered in 2019. Over the next six months of the transition to FMSP, BAE Systems will collaborate with the new providers at Portsmouth Naval Base to ensure a seamless transfer of employees to their organizations.