The five-year contract extension with British defence firm Babcock will cover vital military assets including Challenger 2 tanks, 105mm artillery guns and Trojan armoured vehicles, ensuring they remain combat-ready to meet emerging threats.

The Service Provision and Transformation Contract (SPTC), which was initially secured in 2015 for a 10-year-period, will also sustain 1,600 highly skilled jobs in locations across the UK, including over 400 in Telford and over 250 in Dorset.

Maintenance services will cover preventative maintenance, emergency repairs and spare parts management. It will also include digital transformation to improve fleet management efficiency, keeping more vehicles and equipment primed for soldiers to use – boosting national security whilst also contributing to the economic growth in the UK.

MOD Director Land Environment, Major General Lizzie Faithfull-Davies CBE said:   

“It has taken a lot of hard work to collaboratively deliver this SPTC Reframe contract amendment. I am delighted to renew our relationship with Babcock. With this amended contract, DE&S, the Army, and Babcock will now provide even better support to the in-Service platforms of our Armed forces; ensuring that the vehicles the Army will fight from are repaired, maintained, and ready whenever the Army need them.”

The deal will also support approximately 6,000 UK businesses throughout the wider supply chain, as well as 200 apprentices. These apprenticeships will offer valuable training and development opportunities in fields such as HGV maintenance and automotive refinishing, providing career paths in the defence sector for the next generation of skilled workers.

Babcock’s Chief Executive Officer, David Lockwood said:

“In a period of increased global instability, more is being expected of our armed forces. This contract extension ensures that Babcock continues to provide the British Army with the tools to do its job, when and wherever they are needed. Our know-how, application of technology and extensive experience in the land domain help ensure that the British Army is ready to fight and win wars.”

The work comes ahead of the Defence Industrial Strategy, which will bolster UK industry and provide more opportunities for defence to be an engine for economic growth. It follows a recent commitment from the UK Government to launch a new hub to provide small and medium enterprises (SMEs) with better access to the defence supply chain, and a commitment to set direct SME spending targets for the Ministry of Defence by June this year.

DE&S Director Commercial, Paul Bell said: 

“The SPTC Reframe contract amendment has secured the optimum deal for both Army and Industry and represents a step change of improvement in delivering support to the Army’s vehicles. This continues the long and successful relationship with Babcock, providing a transformative platform as we head towards the future Land Integrated Operating Services ( LIOS) approach to support.”