I informed the House on 31 March that the Ministry of Defence (MOD) was launching the sale of the Defence Support Group’s land business. Following a strong competition, I am pleased to announce that Babcock Land Ltd has been selected as the preferred bidder. I will make a further statement to the House with final details of the transaction in the new year, after a contract has been signed.
I also informed the House in March that the MOD would be retaining the Defence Support Group’s air business, the Electronics and Components Business Unit (ECBU). I am pleased to announce that ECBU will become the Defence Electronics and Components Agency (DECA), a new MOD Trading Agency, from 1 April 2015.
DECA will continue to provide support to a diverse range of electronic, avionic and mechanical equipment for both fixed wing and rotary platforms. This will include the provision of a specialist avionics obsolescence management capability. DECA’s Trading Agency model, based on an executive agency, will allow it to continue trading with the MOD and industry customers in a similar way to how the ECBU currently operates within the Defence Support Group.