Thursday 18 Dec 2014 @ 11:15
Ministry of Defence
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Defence Support Group sold for £140 million

The Ministry of Defence has signed a contract for £140 million with Babcock International for the sale of Defence Support Group.

The Defence Support Group (DSG) maintains and repairs key military equipment and manages the storage of the land vehicle fleet.

The deal includes a 10-year contract with Babcock for the maintenance, repair, overhaul and storage of current military vehicles and light weapons.

The contract award follows the announcement of the preferred bidder last month, and will see Babcock continue the services DSG currently provides.

As well as the £140 million that the sale will generate upfront, the Army will also benefit from considerable savings over the next 10 years, seeing a transformation in the way its vehicles such as Challengers and Warriors are maintained.

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Channel website: https://www.gov.uk/government/organisations/ministry-of-defence

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