£2.4 billion ammunition deal secures thousands of UK jobs
Category: Events
Publish date: 01/02/2021
The Next Generation Munitions Solution (NGMS) will see BAE Systems manufacture 39 different munitions for the Royal Navy, Army, Royal Air Force and Strategic Command to use on the front line, including: small arms ammunition, mortars, medium calibre gun rounds and large calibre artillery and tank shells. An estimated 1,260 people will work on NGMS in engineering, operations and supporting roles across five BAE Systems UK sites, while a further 1,500 roles will be supported along the supply chain alongside 1,300 jobs as a result of consumer spending in local economies. This contract award follows the substantial £16.5 billion settlement for defence over four years that will modernise the Armed Forces and bring jobs and prosperity to every part of the UK.
Ed Cutts, DE&S Director Weapons, said:
“This new, improved contract with BAE Systems secures the supply of cutting-edge key munitions for the front line while delivering even greater value for money for the taxpayer. We look forward to continuing our collaboration with BAE Systems to deliver on the opportunities this partnership and agreement present.”
Replacing the current MASS (Munitions Acquisition, the Supply Solution) single-source contract from January 2023, the NGMS will deliver about 50 per cent, by value, of the MoD’s total general munitions (GM) portfolio and will maximise military capability while reducing cost. The new contract will offer better value for money as it includes incentives for BAE Systems to make savings over the life of the contract. In its bid, BAE Systems identified about £400 million of savings and efficiency opportunities to be pursued up to 2038 in order to meet this challenge. The contract also includes flexibility to vary the volume of orders and allow GM products to be added or removed, depending on front line requirements.
Defence Minister Jeremy Quin said,
“This vital multi-billion-pound contract will provide our Service men and women with fire power on the front line for years to come whilst investing in the British industry, British jobs and British infrastructure. Defence underpins hundreds of thousands of jobs across all four corners of the nation, and ongoing investment is crucial as we work together to bounce back better and stronger from the COVID-19 pandemic.”
As it delivers the munitions, BAE Systems forecasts it will spend £350 million with UK-based companies on raw materials and machine components. It pledges to invest more than £70 million refurbishing and upgrading manufacturing lines, including £32 million at Glascoed, £27 million at Washington and £12 million at Radway Green. The company will also invest in the next generation by recruiting over 200 apprentices and graduates during the course of the contract.
Charles Woodburn, Chief Executive, BAE Systems, said:
“This contract secures the future of a highly technical and critical industry which supports thousands of manufacturing jobs in several areas throughout the UK. By investing in new technology and skills to further develop our expertise, we can continue to deliver essential sovereign capability to the armed forces at competitive prices.”
DE&S are extremely proud to have a long-standing relationship with the Career Transition Partnership (CTP); with whom we continually work to provide Service leavers with excellent employment opportunities.
If you think you’d be the right fit for DE&S, and all of the above excites you, please head over to the CTP’s online job board, RightJob to find our latest vacancies.