£250 million upgrade to naval communications will support more than 100 high-skilled UK jobs, delivering on the Government's Plan for Change.
More than 100 high-skilled jobs will be secured in the UK thanks to a new £250 million contract to upgrade the communications systems of the Royal Navy's warship and submarine fleet.
Jobs at Thales sites in Portsmouth, Plymouth, Crawley, Reading and Bristol will be supported after the company was awarded the largest-ever contract for the provision of naval communication capabilities.
This large-scale investment helps to support the objectives of the upcoming Defence Industrial Strategy - to drive investment to UK-based businesses and boost defence jobs in every nation and region of the country.
The 10-year long contract for Maritime Communications Capability Support (MCCS), awarded by Defence Equipment & Support, will upgrade the Royal Navy's internal and external fleet communications, strengthening the UK's continuous at sea deterrent and supporting global operations.
Contracts like this one are a key part of the UK Government's Plan for Change, safeguarding national security whilst raising living standards across the UK with good, skilled, productive jobs.
It is estimated the new contract will also save the Royal Navy up to £30 million in costs over the next decade.
Minister for Defence Procurement and Industry, Maria Eagle MP, said:
This new contract is a vital step in ensuring our forces remain secure at home and strong abroad. By enhancing the capabilities of our naval operations, we are reinforcing the UK's ability to respond to threats wherever they arise.
In an increasingly volatile world, robust communication is the backbone of operational success. In the face of global threats, the upcoming Defence Industrial Strategy will ensure defence is an engine for growth, boosting British jobs, and strengthening national security.
Communication systems on Royal Navy Units are a critical component of a platform's ability to operate and fight. To meet and sustain global commitments requires resilient and enduring support contracts to maintain mission-critical equipment at the highest levels of operational capability and availability.
The MCCS arrangement replaces the previous Fleetwide Communications contract which Thales UK has overseen for the past seven years. Thales UK will also provide "waterfront" office services, recovery for ageing equipment and inventory management, ensuring spare part availability and ongoing defect repairs as required.
A key element to the contract is fostering closer collaboration between DE&S, the Royal Navy, and Thales UK, effectively delivering a 'one defence' team which reduces bureaucracy while boosting efficiency.
Commodore Phil Game, Director of Sense, Decide & Communicate at DE&S, said:
First and foremost, this announcement ensures the Royal Navy continues to have effective and secure communications equipment with continuous support from Thales, which has Europe's largest team of marine communications engineers, supporting its vital work keeping the UK and our allies safe.
Crucially, we have looked at outcomes from other successful defence programmes and applied the lessons learned from those, in particular cutting unnecessary red tape and bureaucracy allowing Thales much more freedom to get the job done.
We estimate that the scope of this contract will save between £25 million and £30 million in through life costs to the Royal Navy over the 10-year support period by working in a much more collaborative way with Thales UK, underlining our 'one defence' philosophy.
This investment demonstrates the government's commitment to national security and follows the launch of the consultation for the Defence Industrial Strategy - which will place deterrence at the heart of a new approach and ensures the defence sector is an engine for growth in every region and nation of the UK.
Phil Siveter, CEO Thales in the UK, said:
At Thales we are delighted to continue supporting the Royal Navy in its vital mission to protect our nation. This long-term fleetwide support framework reflects our unwavering commitment to ensuring the Royal Navy remains combat-ready and equipped with world-class communications capabilities, today and into the future.
Building on seven years of trusted partnership, we are proud to provide the technical excellence and on-the-ground support that keeps ships, submarines and installations operational and mission-ready. By working as 'one team' across the Naval Enterprise, we are driving innovation and systems integration to place the Royal Navy at the cutting edge of defence technology for the next decade.
