Re Contract

RNS Number : 4301Q

Babcock International Group PLC

09 April 2009

 



9 April 2009                                 

Babcock International Group PLC

£155 million Submarine Engineered Support Contract (SESC)

Babcock International Group PLC, the Royal Navy's leading submarine support partner, has been awarded a £155 million contract to provide in-service engineering support to the UK's submarine flotilla over the next ten years. 

Babcock will lead the industry team, the Submarine Support Management Group (SSMG), to deliver the SESC contract. This builds on the strong relationships established during the previous eleven years of successful support provided by SSMG.  

SSMG will be responsible for providing a wide range of design and technical support services and will work as a joint team with the Ministry of Defence. The new contract is performance based against shared goals with greater emphasis placed on managing through-life issues rather than specific tasks. This will enable the SSMG to drive cost-reduction and efficiencies across the totality of the support enterprise.  

In addition, one of the key objectives of this joint support arrangement is to create a greater pool of Suitably Qualified and Experienced Personnel (SQEP) to provide sustainable submarine support in the future.

Babcock Chief Executive Peter Rogers commented:

'I am delighted we have been awarded this contract and look forward to building on the strong partnership we have established with the Ministry of Defence. Through the specialist knowledge and experience within our business, we will seek to transform the provision of through-life submarine support.'

Ends

Babcock International Group PLC                    020 7355 5300

Peter Rogers

Bill Tame

Terri Wright

Financial Dynamics                                               020 7269 7121

Sophie Kernon

Charlotte Whitley 

  Notes to Editors 

Babcock International Group PLC

1.    Babcock is an engineering support services company with a market capitalisation of
       around £1billion 

2.    In the financial year ended 31 March 2008 Babcock reported revenues of £1.56 billion and
       underlying profit before tax of £95.5 million

3.    Babcock's key strengths are 

a.    a highly technical engineering skill base

b.    a complex project management capability

c.    an ability to work in partnership with its customers to deliver the highest standards
       of customer satisfaction

d.    a thorough understanding of and ability to manage customers' operationally critical
       assets

4.    Babcock operates through six divisions based extensively in the UK with operations in
       southern Africa and North America.  

5.    Through its Marine division Babcock is the UK's leading naval support business and is the
        largest support provider to the Royal Navy. Babcock is the sole provider of through-life
        support to the Royal Navy's submarine fleet and owns the only facilities in the UK where
        nuclear submarines can undergo refuelling and deep refit work. Babcock also manages,
        on behalf of the Royal Navy, the Clyde naval base at which the majority of submarines are
        based and where in-service maintenance is carried out. 

6.    Recent marine contracts awarded to Babcock include 

a.    HMS Vigilant Long Overhaul Period and Refuel (LOP(R)) contract March 2009 -
       three and a half year contract worth in excess of £300

b.    £560 million Warship Support Modernisation Initiative (WSMI) contract for HMNB
       Devonport

Submarine Support Management Group (SSMG)

1.    Other members include BMT Defence Services and Systems Evaluation and Assessment
       (SEA).

 

END

 

 

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