BAE Systems has been awarded a 15-year contract worth £2.4bn for the supply of munitions to the UK Ministry of Defence (MOD).
This new agreement, which will supersede the current contract due to conclude at the end of 2022, will guarantee the delivery of munitions products and engineering support to the UK Armed Forces.
The contract, called the ‘Next Generation Munitions Solution’ (NGMS), is due to commence in January 2023 and will succeed the current ‘Munitions Acquisition, the Supply Solution’ (MASS) contract, which commenced in 2008.
The agreement enables BAE Systems to invest £70 million on the refurbishment and upgrade of manufacturing lines, with 75% of this value being invested by 2026. The Company will also spend up to £350m with UK-based companies on raw materials and machine components.
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.”
The Next Generation Munitions Solution (NGMS) will see BAE Systems manufacture 39 different munitions for the Royal Navy, Army, 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, a UK MoD release said.
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 and reduce cost.