Source · Select Committees · Defence Committee
Recommendation 26
26
Paragraph: 177
We are not reassured by the Department’s evasiveness around whether the Fleet Solid Support ships...
Conclusion
We are not reassured by the Department’s evasiveness around whether the Fleet Solid Support ships will be built in the UK. The Department must ensure the Fleet Solid Support ship contract is built in a UK yard, reflecting its designation as a warship, whilst outlining the Department’s ambition and confidence in UK delivery. In its response to this report, the Department should confirm how it will restrict the 78 “We’re going to need a bigger Navy” competition to a national build without further delaying the procurement process. It should also confirm whether the programme will follow the other recommendations in Sir John Parker’s review, notably pace, grip and designing for export. As the Navy’s only current solid support ship is scheduled to retire in 2028, the new vessels must be delivered as quickly as possible to ensure the Navy can deliver the sovereign core capability it aims for.
Paragraph Reference:
177
Government Response
Acknowledged
HM Government
Acknowledged
Response: The Department has been clear on the UK requirements for FSS and the competitive approach, which uses the successful Type 31 route of allowing both UK and International participation. The final contract for the manufacture of the FSS ships will be awarded to a UK business, either solely or as part of a consortium. We have been clear that a significant proportion of the build work will be carried out in the UK. In tendering for the design and build of the FSS ships, bidders must ensure that all three ships are integrated in UK shipyards. Bidders are also incentivised to maximise the social value offering in terms of the contribution shipbuilding can make in the UK, including encouraging investment in domestic shipyards. The Secretary of State for Defence has stated that the ships will be considered as warships, which confirms that the programme is exempt from requiring international competition. The decision to consider these ships as warships has been made for reasons of national security and reflects a changed requirement, based on a clearer understanding of how these warships will support the RN’s CSG. The competition is proceeding at pace in line with best practice set by Type 31, but also incorporating important lessons. FSS is a bespoke capability for carrier strike but also values adaptability in design which may be attractive to export customers. The new competition is aligned to the 2021 DSIS, which allows for the procurement approach to be developed on a case-by-case basis. The imperative for FSS is to balance value for money for the provision of our requirements with the wider strategic goals of improving UK shipbuilding, leaving a legacy of increased capability and capacity for the future. The blended competitive approach of UK and international participation has been communicated to industry, including the UK content and social value requirements. In line with the Secretary of State’s decision, the competition is clear that integration of the ships will be in the UK and the competition incentivises inward investment in UK shipyard facilities, skills and work to generate sustainable improvement to competitiveness and productivity. The Contract Notice advertised the requirement for all three ships to be delivered by 2032, but the competition evaluation criteria values and rewards bids that deliver to the earliest schedule, to meet the out of service date of RFA FORT VICTORIA (currently 2028) balanced against value for money and affordability.