Ministry of Defence
Saving over £110 million on a new submarine for the Royal Navy
In one of the most complex equipment programmes they have ever run, the Ministry of Defence (MOD) is building seven Astute-class, nuclear-powered submarines to maintain the UK’s naval defences.
With the manufacture of the sixth submarine underway, the prime contractor had submitted their final proposal to the MOD, who asked us to help with the final negotiations and get the best value for money for UK taxpayers. The MOD also wanted help with moving the contract through the complex approvals process much faster than usual. The standard approvals process for a contract like this typically takes 115 days, but there were only 30 days to go before the contract had to be signed.
We looked closely at the build programme and associated costs to see where savings could be made and to develop evidence to support negotiations on the final deal. We also developed a robust plan for securing ministerial sign-off for the final contract which detailed the key activities that needed to take place. This included engaging with more than 65 stakeholders across Government and creating a strong evidence base to help them make prompt decisions.Throughout, we had to make sure the contract was scrutinised properly despite the shorter timescale.
We helped secure approvals within 30 days – cutting the time it normally takes by 85 days. This allowed the final contract to be signed within the challenging timeline. In addition, our support in negotiating the final deal enabled the MOD to secure savings of £110 million on the £1.4 billion contract.