BAE Systems awarded £1.3B FMSP contracts

British multinational arms, security, and aerospace company BAE Systems will retain its key role supporting the Royal Navy at Portsmouth Naval Base as it secured two contracts as part of the Ministry of Defence’s (MOD) Future Maritime Support Programme (FMSP) competition.

The contracts, worth up to £1.3 billion ($1.8 million) over five years, will commence on 1 October 2021 following a transition period.

As informed, BAE Systems will continue to deliver ship asset management, repair and maintenance for the entire Portsmouth flotilla under a £900 million contract.

It will also establish a joint venture with KBR to deliver technology-led and data-driven facilities management and dockside services at the base, under a £365 million contract. The joint venture – to be called KBS Maritime – will combine the expertise of KBR which is active in the infrastructure asset management and services market, with BAE Systems’ experience and capability within Portsmouth Naval Base.

“These new contracts will enable us to continue our vital role in supporting the Royal Navy, at home and abroad, building on our long history of delivery, investment and collaboration at Portsmouth Naval Base,” David Mitchard, Managing Director of BAE Systems’ Maritime Services business, commented.

“We’re proud of the improvements we’ve made at the base, delivering significant infrastructure improvements and reducing carbon emissions by 65%. We’re excited by the opportunity to continue delivering transformation alongside KBR and other new service providers to support the Royal Navy at Portsmouth, mitigating environmental impact of operations, whilst maintaining critical military outputs.”

The first of the FMSP contracts secured by BAE Systems covers Class Output Management (strategy), Design Services (technical planning and design) and Ship Engineering (maintenance, repair and upgrade).

The second contract covers strategic estate management, infrastructure programme development and delivery and provision of operations, maintenance and alongside services.

KBS Maritime will further develop the Portsmouth base infrastructure, securing investment in the local community and ensuring fit-for-purpose naval fleet support for the Royal Navy and the UK.

BAE Systems and its legacy companies have supported the Royal Navy at Portsmouth Naval Base for more than 20 years, with the last seven years successfully delivering the Maritime Support Delivery Framework (MSDF) as part of Team Portsmouth. Under this contract, BAE Systems has managed the entire Portsmouth Naval Base estate and supported the Portsmouth-based flotilla.

The company has also helped reduce carbon emissions from approximately 100,000 tonnes to 35,000 tonnes per year over the last 15 years, supported by the creation of a combined heat and power (CHP) plant to supply power to the aircraft carriers and the introduction of electric vehicles to the base.

BAE Systems also helped the navy develop its carbon profile and roadmap for Portsmouth Naval Base, and will support the implementation of the roadmap to achieve the MOD’s net zero goals by 2050.