Source · Select Committees · Scottish Affairs Committee
Recommendation 60
60
Not Addressed
As discussed in Chapter 2, in November 2022 the MOD took the decision to select...
Conclusion
As discussed in Chapter 2, in November 2022 the MOD took the decision to select Team Resolute as the preferred bidder for the Fleet Solid Support ships contract. The MOD did not select a bid from Team UK, a consortium which included BAE Systems and Babcock.
Government Response Summary
The government defends its decision to award the Fleet Solid Support ship contract to Team Resolute, citing ongoing work in Scottish shipyards, investment in the UK, and adherence to the National Shipbuilding Strategy.
Government Response
Not Addressed
HM Government
Not Addressed
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.