Fourth Report - Defence in Scotland: military shipbuilding

The Government stated they seek to account for the wider benefits from shipbuilding procurement programmes through the application of the Social Value model. The National Shipbuilding Office (NSO) and the MOD have undertaken a series of regional assessments to better understand the economic footprint of the UK shipbuilding industry.

The NSO is gathering the required data to monitor and assure the delivery of the Refresh and is suitably empowered to provide strategic oversight of all Government activity across the shipbuilding enterprise and is committed to demonstrating accountability and value publicly where possible.

The Department stated that they have already signed a lease for a base in Queen Elizabeth House in Edinburgh, which will be used by the NSO to host its staff and support visits. The NSO is advertising jobs based in Edinburgh.

The MOD referenced its SME Action Plan and engagement with the Scottish Supplier Development Programme as actions already in place to support shipbuilding clusters and address barriers to Scottish SMEs.

The MOD stated that they had a target of 25% SME procurement spend by the end of 2022, with Scottish SMEs playing a significant role, and that figures are being gathered and will be published. They also stated that regional statistics for FY21/22 have been published and confirm £67M went directly to Scottish SMEs, representing 7% of direct SME spend.

The MOD uses the Cabinet Office Social Value Model, measures delivery through standard reporting metrics, contract-specific metrics, and a Social Value Key Performance Indicator, and manages performance through reporting obligations, performance management terms, and a formal framework for managing relationships with its largest suppliers.

The government states that the UK Shipbuilding Skills Taskforce (UKSST) is already addressing this challenge and includes representatives from Skills Development Scotland and Scottish industry.

The government states that the NSO is gathering the required data to monitor and assure the delivery of the Refresh, and reports to the Secretary of State for Defence who has the ability to hold other Ministers to account. They believe the NSO is suitably empowered to provide strategic oversight and is committed to demonstrating accountability and value publicly, including the publication of the NSO Corporate Plan (2022–25).

The NSO has signed a lease for a base in Queen Elizabeth House in Edinburgh to host its staff and support engagement. The NSO advertises all its job vacancies to be based from either its Edinburgh or London offices.

The government confirms the Royal Navy intends to procure more frigates and destroyers, states the T32 program is in the concept phase, and the suspension of the National Flagship has not created a gap in the pipeline as the MROS ships are being brought forward.

The MOD uses the Cabinet Office Social Value Model as the framework, measures social value delivery using standard metrics, contract-specific metrics, and a Social Value Key Performance Indicator, and manages performance like any other contractual obligation with appropriate reporting and performance management terms.

The MOD states it already has initiatives to improve understanding of supply chains, including a Supply Chain Resilience Programme and a new Defence Condition (DEFCON) requiring supply chain maps.

The UK Shipbuilding Skills Taskforce (UKSST) is collaborating across Government, the Devolved Administrations, industry and training providers to develop and implement a future-focussed skills strategy and intends to publish a report of recommended actions in autumn 2023.

The Government seeks to account for the wider benefits from shipbuilding procurement programmes through the application of the Social Value model and regional assessments. The NSO also works with MOD procurement teams to ensure economic benefits are considered.

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.

The MOD published the SME Action Plan in 2022 which outlines the commitments being made to increasing and supporting opportunities for Small and Medium Enterprises (SMEs). The Department for Transport is the lead Government Department for the Regional Maritime Cluster Development Programme.

The NSO and the MOD are committed to ensuring that social value commitments through Government shipbuilding procurements and investments are delivered. Under the Cabinet Office Social Value Model, the contracting authority is also mandated to assess the supplier’s performance.

The MOD recognizes the importance of maintaining a regular drumbeat of orders across the Shipbuilding industry and the NSbS aims to provide a more sustainable demand signal from Government through a 30-year cross-Government Shipbuilding Pipeline. The NSO has committed to updating the shipbuilding pipeline at each multi-year Spending Review.

The MOD recognizes the importance of maintaining a regular drumbeat of orders across the Shipbuilding industry and the NSbS aims to provide a more sustainable demand signal from Government through a 30-year cross-Government Shipbuilding Pipeline. The NSO has committed to updating the shipbuilding pipeline at each multi-year Spending Review. The Type 32 Frigate programme remains a key part of the future fleet and will be UK-built, but the procurement route has yet to be determined.

The MOD published the SME Action Plan in 2022, outlining commitments to increasing opportunities for SMEs and supporting the defence supply chain through initiatives such as the Defence Suppliers Portal and digital outreach.

The MOD had a target of 25% of procurement spend going to SMEs by the end of 2022 and expects Scottish SMEs played a significant role in this. Figures for FY21/22 show £67M went directly to Scottish SMEs, representing 7% of total direct SME spend.

The MOD outlines the SME Action Plan and initiatives to support SMEs, including the Defence Suppliers Portal, SME champions, and digital outreach. They also note the Department for Transport is the lead for the Regional Maritime Cluster Development Programme.

The MOD published the SME Action Plan in 2022 which outlines the commitments being made to increasing and supporting opportunities for Small and Medium Enterprises (SMEs), including easier procurement models, recognition of the role of the MOD and its suppliers in supporting the supply chain, and support for innovation and exports. The MOD also supports the Defence Suppliers Portal and digital outreach, and aims to achieve 25% of Defence spend with SMEs this year. The Department for Transport is the lead for the Regional Maritime Cluster Development Programme.

The NSO and the MOD are committed to ensuring that social value commitments through Government shipbuilding procurements and investments are delivered. Under the Cabinet Office Social Value Model, the contracting authority is also mandated to assess the supplier’s performance.

The NSO and the MOD are committed to ensuring that social value commitments through Government shipbuilding procurements and investments are delivered. Under the Cabinet Office Social Value Model, the contracting authority is also mandated to assess the supplier’s performance.

The MOD operates initiatives to improve understanding of supply chains, including the Supply Chain Resilience Programme and a new Defence Condition (DEFCON) requiring contractors to provide supply chain maps.

The MOD operates a series of initiatives to improve understanding of supply chains and address vulnerabilities, including a Supply Chain Resilience Programme and the introduction of a new Defence Condition (DEFCON) in contracts to map supply chains.

The MOD states that it already operates several initiatives to improve the understanding of supply chains, including a Supply Chain Resilience Programme and a new Defence Condition (DEFCON) in contracts.

The UK Shipbuilding Skills Taskforce (UKSST) seeks to address this challenge by collaborating across Government, the Devolved Administrations, industry and training providers to develop and implement a future-focussed skills strategy, with a report of recommended actions expected in autumn 2023.

The UK Shipbuilding Skills Taskforce (UKSST) seeks to address this challenge by collaborating across Government, the Devolved Administrations, industry and training providers to develop and implement a future-focussed skills strategy, with a report of recommended actions expected in autumn 2023.

The UK Shipbuilding Skills Taskforce (UKSST) is collaborating across Government, the Devolved Administrations, industry and training providers to develop and implement a future-focussed skills strategy and intends to publish a report of recommended actions in autumn 2023.

The UK Shipbuilding Skills Taskforce (UKSST) seeks to address the challenge of retaining existing staff by developing and implementing a future-focussed skills strategy. The UKSST includes representatives from Skills Development Scotland and Scottish industry and intends to publish a report of recommended actions in autumn 2023.

The government is addressing this challenge through the UK Shipbuilding Skills Taskforce (UKSST), which aims to develop and implement a future-focused skills strategy and publish a report of recommended actions in autumn 2023.

The UK Shipbuilding Skills Taskforce (UKSST) is collaborating across Government, the Devolved Administrations, industry and training providers to develop and implement a future-focussed skills strategy and intends to publish a report of recommended actions in autumn 2023.

The government is addressing this challenge through the UK Shipbuilding Skills Taskforce (UKSST), which aims to develop and implement a future-focused skills strategy and publish a report of recommended actions in autumn 2023.

The scope of the UKSST aligns with the NSbS Refresh and it will therefore consider the skills requirements and know-how for the entirety of the shipbuilding enterprise, including the warship, commercial, workboat and leisure market sectors, both in the short and long term.