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''[PA's work] led to a step change in the relationship between the MOD and DML...we now have a joint commitment to performance improvement and cost reduction...and the shared techniques and confidence to do it.''

Commodore simon lister obe, Former naval base commander (devonport)

Devonport Management Ltd - Reducing cost and improving the partnering relationship

Devonport Management Ltd (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 UK’s defence. The relationship between DML and the UK Ministry of Defence (MOD) had become increasingly strained as pressure on the national defence budget forced the MOD to push for reduced costs in submarine support.

PA worked with DML and the MOD 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.

As a result, the cost of nuclear facilities was reduced by around 30 percent – a saving of £60 million over five years – and the relationship between the organisations was transformed. This spurred the MOD and DML to progress towards a true partnering relationship and identify further efficiency gains of up to £100 million over five years.

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

* DML was acquired by Babcock Marine in 2007.

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