Source · Select Committees · Scottish Affairs Committee
Recommendation 5
5
Not Addressed
Paragraph: 25
The UK Government should set out its reasoning for selecting Team Resolute as the preferred...
Recommendation
The UK Government should set out its reasoning for selecting Team Resolute as the preferred bidder for building the new order of Fleet Solid Support ships. Specifically, it should confirm whether the bid from Team Resolute offered the lowest price to the UK Government of the bids submitted.
Government Response Summary
The government stated that the decision to award the Fleet Solid Support ship contract to Team Resolute did not prioritise short-term savings, that Scottish shipyards are building Type 26 and Type 31 frigates, and that both Harland & Wolff and BMT have sites in Northern Ireland, Scotland and England. It does not confirm whether Team Resolute offered the lowest price, citing commercial interests.
Paragraph Reference:
25
Government Response
Not Addressed
HM Government
Not Addressed
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.