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"PA has delivered important short-term savings and encouraged wider engagement which should lead to further savings in excess of £100m."

Henry Warren, Finance Director, Devonport Management Ltd

Devonport Naval Base - Generating savings of £60M over 5 years

PA Consulting Group worked with Devonport Management Limited (DML – now Babcock Marine) and the UK Ministry of Defence (MOD) at Devonport as the Independent Partnering Advisor to help address long-term partnering challenges, develop a contract framework to incentivise improved performance and deliver a sustainable cost reduction programme generating immediate savings of £12M per annum.

DML was a private company supporting the Royal Navy’s operations in Devonport Naval Base, refitting nuclear-powered submarines – a technically demanding job that can take three years and is pivotal to the nation’s defence.

The relationship between DML and the MOD had become increasingly strained over recent years as pressure on the national defence budget forced the MOD to push for reduced costs in submarine support. As a first step towards a better partnership between the MOD and DML at Devonport, PA worked with both parties on a long-standing source of conflict and misunderstanding – the cost of providing nuclear facilities.

As a result of PA’s work, the cost of nuclear facilities fell by around 30% – a saving of £60 million over five years – and the relationship between the organisations has been transformed. The assignment has spurred the MOD and DML to progress towards a true partnering relationship and further efficiency gains, which should save a further £100 million over the next five years.

To find out more about our defence expertise, including cost reduction, performance improvement and partnering, please contact us now.

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