The in-service support we provide to the ships and submarines of the Royal Navy is vital in ensuring that the Fleet remains one of the world’s most powerful maritime forces, able to operate with sovereign independence and protect the UK’s interests around the world.

This is the first opportunity I have had to announce that on 10 September 2009 we awarded a contract, worth £309 million, to BVT Surface Fleet Ltd to provide in-service support for the Royal Navy’s new Type 45 Destroyers. The class of six Type 45s is one of a number of new capabilities being developed for the Royal Navy and will provide the UK’s future anti-air warfare capability, as well as being capable of contributing to a wide range of other military tasks.

The contract will provide support for a period of up to seven years commencing from 1 January 2010, in preparation of HMS Daring’s planned in-service date in February 2010.

This support contract uses an “availability based contracting” approach where industry are contracted to manage equipment availability to agreed targets, incentivising them to minimise the cost of support by improving equipment reliability. Type 45 is the first major warship to adopt this approach.

Separate negotiations are under way to provide an in-service support solution for the Sea Viper missile system fitted to Type 45. These are expected to conclude early in 2010.