British defense contractor Babcock International said it has secured a five-year contract extension from the U.K. Ministry of Defence worth about $1.3 billion to support the British Army’s operational readiness. The contract extension will directly support London’s Defence Industrial Strategy and contribute significantly to the U.K.’s economic growth, the company said Wednesday.
The Defence Support Group, a former MoD agency that Babcock acquired in 2014, is in charge of the original 10-year Service Provision and Transformation Contract and its subsequent extension.
Army Combat Readiness
Babcock CEO David Lockwood said the extended contract ensures the sustained delivery of tools whenever and wherever the British Army needs them. “Our know-how, application of technology and extensive experience in the land domain help ensure that the British Army is ready to fight and win wars,” he added.
According to an MoD announcement, the military assets covered in the contract extension include the maintenance of Challenger 2 tanks, 105 mm artillery guns and Trojan armored vehicles to ensure their combat readiness against emerging threats. The Babcock contract directly benefits 1,600 defense jobs and supports an additional 6,000 positions in the business supply chain, the ministry said.
Economic Growth Engine
Defence Secretary John Healey noted that tanks and armored vehicles are the British Army’s backbone requiring government action to ensure readiness against global threats.
“Supported by largest sustained increase in defense spending since the Cold War, this substantial investment with Babcock demonstrates how defense is an engine for growth: supporting businesses of all sizes and sustaining more than 1,600 good, well-paid jobs across Britain,” Healey stressed.
In addition to the DSG contract, Babcock also received a $709.9 million MoD award in March 2024 for maintenance and life extension support of the Royal Navy’s HMS Victorious submarine.