Source · Select Committees · Scottish Affairs Committee
Recommendation 4
4
Accepted
Paragraph: 24
The decision to award the Fleet Solid Support (FSS) ships to the international consortium Team...
Conclusion
The decision to award the Fleet Solid Support (FSS) ships to the international consortium Team Resolute is an example of a shift in the UK Government’s approach to warship procurement. We note that the UK Government chose the Team Resolute bid over a Team UK bid that would reportedly have supported more jobs in the UK, and Scotland in particular. The UK Government’s decision appears to prioritise short-term savings over longer term economic gains for Scotland and the rest of the UK. Witnesses told us that the FSS decision would be a test of the new National Shipbuilding Strategy.
Government Response Summary
The MOD states that the decision to award the Fleet Solid Support ship contract to Team Resolute did not prioritise short-term savings and that the decision was the result of a fair and open competition, supporting the objectives of the National Shipbuilding Strategy.
Paragraph Reference:
24
Government Response
Accepted
HM Government
Accepted
4, 5 & 6: The decision to award the Fleet Solid Support ship contract to Team Resolute did not prioritise short-term savings over the economic interests of any part of the United Kingdom. Scottish shipyards are presently building the Type 26 and Type 31 frigates, and this work will continue until the mid-2030s and around 2028 respectively. Both Harland & Wolff and BMT, who along with Navantia UK make up the Team Resolute consortium, have sites in Northern Ireland, Scotland and England. As a matter of long-standing policy, the MOD does not disclose details of the losing bids in commercial competitions as to do so would be prejudicial to the commercial interests of the bidders concerned. For this reason, it is not possible to provide further detail as to why the Team UK bid was non-compliant. The decision to award the Fleet Solid Support ship contract to Team Resolute was as a result of a fair and open competition. The outcome supports the objectives of the National Shipbuilding Strategy (NSbS) Refresh through significant capital investment in the UK. Of the bids received by the MOD, the Team Resolute bid is the best outcome for Defence and the UK shipbuilding industry. The FSS contract will deliver capable solid support to the aircraft carriers and the investment it brings will leverage the UK’s position in the global market for both shipbuilding and equipment and systems, improving competitiveness and the UK’s supply chain access to the international market.