Back to news

November 9, 2018 | International, Aerospace, Naval, Land, C4ISR, Security

UK - MOD sets out vision to diversify supply base

The Ministry of Defence has today announced plans for modernising its estate and establishing a broader and more diverse supply base.

The Defence Infrastructure Organisation's (DIO) new procurement plan outlines a programme of major projects and contacts for the next five financial years.

This includes work to construct new buildings, such as housing and accommodation, the refurbishment of current facilities; as well as services such as catering, waste management and cleaning.

The plan also sets out ambitions to establish a broader and more diverse supply base, including doing more business with small and medium size enterprises (SMEs).

Currently, around 75% of spending on maintenance at defence sites goes directly or indirectly to SMEs, and further diversifying the supply base will help build resilience into projects and provide more opportunities for smaller companies to work on key defence projects.

By listing all the major projects and contracts, the procurement plan will make it easier for existing and potential suppliers to plan ahead, by offering advice on bidding for this work and greater transparency on working with the MOD. These measures will help in particular small businesses, who don't always have the skills and prior experience of working with the MOD in such areas.

Minister for Defence People and Veterans Tobias Ellwood said:

The defence estate is where our brave armed forces live, work and train and so it's crucial we give them the best supplies and facilities possible.

Working with industry is critical to delivering this, and our new Procurement Plan ensures the private sector has a head start in bidding for this crucial work.

Opportunities outlined in the Procurement Plan include the £4billion Defence Estate Optimisation Programme, the Future Defence Infrastructure Services contracts - which will provide facilities management across the UK's military bases- and the £1.3bn Clyde Infrastructure Programme.

The plan also details several prominent works that demonstrate DIO's key role in supporting defence throughout the UK. These include essential maintenance work worth £568 million to support nuclear infrastructure capability at HMNB Clyde, as well as a £58m investment in a modern submarine training facility at the base.

Alongside this, there are plans for an £8m investment in Bovington Camp to support the AJAX armoured vehicles which will enter service in 2020.

Jacqui Rock, DIO Commercial Director, said:

As DIO we recognise that our current and future suppliers are key to our success. We have worked with industry to produce the Procurement Plan and we are committed to building a broader, more diverse supplier base.

We believe in being as transparent as possible in our procurements and through this new approach we are encouraging new entrants, including small and medium sized enterprises, to consider the benefits and opportunities that working with DIO can deliver.

The Procurement Plan will help achieve the goals set out in our first ever Commercial Strategy. This set out our vision for how we do business and how we will work effectively with our suppliers.

The Procurement Plan also sets out how DIO can deliver social and economic benefits throughout its supply chain by working to contribute to the government's aim of recruiting 20,000 apprentices through construction procurement and promoting sustainability through its supply chain.

By 2020, DIO has committed to a reduction of greenhouse gas emissions by 30%, a 30% reduction in domestic business flights, a 50% reduction in paper usage and reducing waste going to the landfill to less than 10%.

The full DIO Procurement Plan can be found here

The DIO Commercial Strategy sets the direction for future DIO Procurement Plans. The full DIO Commercial Strategy can be found here

https://www.gov.uk/government/news/mod-sets-out-vision-to-diversify-supply-base--2

On the same subject

  • L3Harris Technologies awarded third LRIP order on US Army’s HMS Manpack IDIQ contract

    April 29, 2020 | International, C4ISR

    L3Harris Technologies awarded third LRIP order on US Army’s HMS Manpack IDIQ contract

    Rochester, N.Y. Apr 28, 2020 - L3Harris Technologies (NYSE:LHX) has received a third low-rate initial production (LRIP) order valued at $95 million by the U.S. Army under the HMS (Handheld, Manpack & Small Form-Fit) IDIQ contract to bring AN/PRC-158 multi-channel radios to the battlefield. This LRIP will be followed by an Operational Test that will inform a Full Rate Production decision for the AN/PRC-158 and other HMS products. The IDIQ contract includes a five-year base and an additional five-year option with a ceiling of $12.7 billion. The Army expects to purchase approximately 65,000 HMS Manpack radios under the IDIQ. The L3Harris AN/PRC-158 radio features a two-channel, software-defined architecture with integrated cross-banding between waveforms, including Single Channel Ground and Airborne Radio System (SINCGARS), Mobile User Objective System (MUOS), Demand Assigned Multiple Access/Integrated Waveform (DAMA/IW) and ready for the Warrior Robust Enhanced Network (WREN) waveform, providing advanced capabilities while maintaining backward interoperability with legacy systems. The software-defined architecture enables flexibility to respond to new and emerging requirements and allows easy porting of new waveforms. The radio is capable of simultaneously handling classified and unclassified data. “L3Harris is proud to deliver the most critical part of the U.S. Army's Integrated Tactical Network, enabling secure multi-mission capability in the most challenging and contested environments,” said Dana Mehnert, President, Communication Systems, L3Harris. “The AN/PRC-158 will equip soldiers with cutting-edge waveforms, providing resilient SATCOM and advanced wideband networking at the tactical edge.” About L3Harris Technologies L3Harris Technologies is an agile global aerospace and defense technology innovator, delivering end-to-end solutions that meet customers' mission-critical needs. The company provides advanced defense and commercial technologies across air, land, sea, space and cyber domains. L3Harris has approximately $18 billion in annual revenue and 50,000 employees, with customers in 130 countries. L3Harris.com. Forward-Looking Statements This press release contains forward-looking statements that reflect management's current expectations, assumptions and estimates of future performance and economic conditions. Such statements are made in reliance upon the safe harbor provisions of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. The company cautions investors that any forward-looking statements are subject to risks and uncertainties that may cause actual results and future trends to differ materially from those matters expressed in or implied by such forward-looking statements. Statements about the value or expected value of orders, contracts or programs and about our system capabilities are forward-looking and involve risks and uncertainties. L3Harris disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. CONTACTS Natalie Ciao Communication Systems +1 585 242 4312 Natalie.Ciao@L3Harris.com Sara Banda Media Relations +1 321 674 4498 Sara.Banda@L3Harris.com View source version on L3Harris Technologies: https://www.l3harris.com/newsroom/press-release/2020/04/89746/l3harris-technologies-awarded-third-lrip-order-on-us-armys-hms-manpack-idiq-contract?utm_source=twitter&utm_medium=social&utm_campaign=cs-tcom-pr-158-lrip

  • Pentagon eyes commercial solution to supply chain problems

    September 12, 2022 | International, Aerospace, Naval, Land, C4ISR, Security

    Pentagon eyes commercial solution to supply chain problems

    The Defense Innovation Unit is seeking commercial software to support new supply chain pathways and manage risk across the industrial base.

  • Boeing, Raytheon missile sales to Saudi Arabia paused by Biden administration

    February 8, 2021 | International, Aerospace, Land

    Boeing, Raytheon missile sales to Saudi Arabia paused by Biden administration

    By: Joe Gould and Aaron Mehta Updated 2/5/2021 at 11:50 am EST to clarify status of the two arms sales WASHINGTON —The Biden administration has paused indefinitely two precision guided munition sales to Saudi Arabia, worth as much as $760 million, as part of a new policy aimed at curtailing violence in Yemen, Defense News has learned. However, that policy, announced Thursday by President Joe Biden, left open the possibility for future sales that are considered vital for Saudi Arabia's national defense, a fine line that would mean some munitions sales will continue. “We are ending all American support for offensive operations in the war in Yemen, including relevant arms sales,” Biden said during a speech at the State Department. “At the same time, Saudi Arabia faces missile attacks, UAV strikes, and other threats from Iranian-supplied forces in multiple countries. We're going to continue to support and help Saudi Arabia defend its sovereignty and its territorial integrity and its people. " The two deals include a foreign military sales case for 3,000 Boeing-made GBU-39 small diameter bombs, which was cleared by the State Department in late December with an estimated price tag of $290 million, according to two sources familiar with the matter. The second is a direct commercial sale for Raytheon Technologies munitions, likely the reported $478 million sale of 7,000 Paveway IV smart bombs. Raytheon CEO Greg Hayes foreshadowed the move in a Jan. 26 investor call, when he said the company was backing off the sale of an “offensive weapon system” to an unnamed middle eastern customer because it did not believe a license would be granted by the new administration. Boeing did not immediately respond to a request for comment. It is possible that further Saudi weapon sales may be paused or outright cancelled in the future, as the Biden administration has announced a wide-ranging review of weapon sales cleared by the Trump administration. According to a White House spokesperson, arms sales to Saudi Arabia will go back to the traditional arms sale oversight process, after the Trump administration pushed multiple weapon sales through over objections by Congress. “All arms sales to Saudi Arabia will return to standard procedures and orders including with appropriate legal reviews at the State Department,” the spokesperson said. “We have reestablished an interagency process for working through the details of individual cases, led by the White House and with all relevant agencies at the table, bringing expertise, discipline, and inclusivity back to our policymaking on these issues.” Added an administration official, speaking on background, “we are ending all American support for offensive operations in Yemen, including relevant arms sales. Importantly, this does not apply to offensive operations against either ISIS or AQAP. “It does include both materiel and terminating our intelligence sharing arrangement with Saudi Arabia regarding the war in Yemen. You've seen that we have already paused two arms sales with Saudi Arabia to ensure while we examine whether they meet our objectives and policies.” Since 2015, the Arab Sunni nations of Saudi Arabia and the United Arab Emirates have led a coalition of states in Yemen against rebel Houthi forces, which are backed by the Shia government of Iran. Aligned with former Yemeni President Ali Abdullah Saleh, the Houthis took over Yemen's capital, Sanaa, in September 2014. The armed conflict in Yemen has resulted in the largest humanitarian crisis in the world, according to Human Rights Watch. Citing the Yemen Data Project, HRW says that during the Saudi-led air war in Yemen, more than 17,500 civilians have been killed and injured since 2015, and a quarter of all civilians killed in air raids were women and children. More than 20 million people in Yemen are experiencing food insecurity; 10 million of them are at risk of famine. Howard Altman with Military Times contributed to this report. https://www.defensenews.com/global/mideast-africa/2021/02/05/boeing-raytheon-missile-sales-to-saudi-arabia-canceled-by-biden-administration

All news