Babcock secures £60m MOD contract to overhaul UK defence fleet operations

Babcock has won a five-year contract to manage the UK Ministry of Defence's white fleet of non-combat vehicles. The deal, named Phoenix 3, is worth approximately £60 million and includes options for further extensions. The company will take over sourcing, maintenance, and fleet operations for the MOD's support vehicles.

Under the agreement, Babcock will handle vehicle procurement, servicing, repairs, and accident management. The contract also covers the development of a custom Fleet Management Information System (FMIS). This system will track and coordinate the MOD's white fleet across both UK and overseas locations.

The new contract aims to improve efficiency through centralised management and cost savings. The MOD's white fleet supports day-to-day and operational activities, though exact vehicle numbers and deployment details remain undisclosed. Around 60 jobs at Babcock are expected to be sustained as a result of the deal.

The Phoenix 3 contract marks a significant step in streamlining the MOD's non-combat vehicle operations. Babcock's role will include digital fleet tracking alongside traditional maintenance services. The agreement could extend for up to five more years, depending on future decisions.