The contract covers support of nuclear power plant systems on board the current fleet of 13 Swiftsure, Trafalgar and Vanguard class submarines. The contract will also include the new Astute class submarines when they enter service.
According to a statement, Rolls-Royce and MoD will form a joint team to set agreed service levels, and the company will be paid for meeting those targets rather than through individual contracts.
Rolls-Royce will also receive additional incentive payments for improvements which create savings for the Ministry when the submarines are in service. Both parties will also share any savings made through improved business efficiency and effectiveness.
The new working arrangements respond to the Ministry’s requirement for closer co-operation from its contractor base to better manage costs, as outlined in the Defence Industrial Strategy White Paper.
Minister of State for Defence Equipment and Support, Lord Drayson, said ‘This landmark partnering contract ensures the