Serco scores £1 billion in contracts for Royal Navy maritime services

International provider of government services Serco was awarded three contracts, with a combined value of over £1 billion, by the UK Ministry of Defense, to provide maritime services for the Royal Navy.

Serco has been providing critical services supporting military training exercises, trialing new maritime technology, and assisting the movements of Royal Navy ships in and out of harbor for nearly 30 years.

Among the three awarded contracts, the company scored a deal valued at c.£850 million over ten years for the delivery of in-port services for HMNB Devonport in Plymouth, HMNB Portsmouth and the Clyde, including HMNB Faslane.

This includes the procurement of 24 new vessels on behalf of the Royal Navy, which will be brought into service over the next decade to modernize the fleet and replace the older vessels currently operated.

Services will include vessel towage, passenger transfer, and barge and tank cleaning services at Portsmouth and Devonport.

The second contract, valued at c. £70 million, with a duration of over five years, is for the provision of inshore support to military training and exercises at the British underwater test and evaluation (BUTEC), an underwater military test and evaluation range off the northwest coast of Scotland, and for diver training support. In addition, the contract includes new work for range safety and aircrew training, which we will deliver in partnership with Briggs Marine.

The company also received a ten-year contract valued at c. £110 million for the provision of offshore support to military training and exercises. This service includes two specialist ocean-going vessels for regional and worldwide support.

“We are proud to have been awarded these three contracts and to have the privilege of continuing to provide critical operational services to the Royal Navy. These awards further strengthen our position in the defence market, where we provide deep expertise around the world,” Anthony Kirby, Serco Group Chief Executive, said.

“We have been performing these duties to an extremely high standard for the last 28 years and we now have the opportunity to modernise the fleet of support vessels to ensure that the Navy has the support it requires, day in, day out, to enable it to keep our waters safe.”

Last year, Serco was awarded a contract extension to continue to provide engineering and airfield support services to the Royal Navy.