UK MOD awards £800 million submarine propulsion contract

Computer Graphics of Astute Class Sub

The UK MOD has awarded an £800 million contract to Rolls-Royce to deliver and maintain the UK's nuclear propulsion capability for submarines.
Under the 10-year contract, which will help sustain around 2,000 jobs across the UK, Rolls-Royce will deliver and maintain the nuclear power source for the Royal Navy’s Astute Class and future Successor deterrent submarines.
Part of the Submarine enterprise performance programme (SEPP), this contract will also help the company to transform its operations to carry out its work at best value for the taxpayer. By consolidating costs into one agreement, MOD and Rolls-Royce expect to make savings of around £200 million over the next decade.
This contract goes a long way towards meeting the government’s commitment to SEPP, as announced in the 2010 Strategic defence and security review, to make at least £900 million of savings by restructuring the UK’s nuclear submarine industry.
Productive negotiations between MOD and Rolls-Royce mean the savings secured by this contract will not lead to any reduction in the required level of output for the submarine programme, which includes the production of the propulsion systems for the Astute and next-generation Successor classes of submarines.