Babcock secures £60m MOD deal to overhaul UK defence vehicle fleet

Babcock has won a five-year contract to manage the UK Ministry of Defence's (MOD) white fleet of non-combat vehicles. The deal, named Phoenix 3, is worth approximately £60 million and includes options for further extensions. Officials have praised the collaboration behind the agreement, which aims to improve efficiency across the fleet.

The contract covers a wide range of services for the MOD's white fleet, including vehicle sourcing, maintenance, and accident management. Babcock will also introduce a custom Fleet Management Information System (FMIS) to streamline operations. The white fleet supports both routine and operational activities, and the new centralised approach is expected to cut costs through economies of scale.

Around 60 jobs will be sustained across Babcock's operations as a result of the deal. Kate Robinson, Managing Director of Through Life Equipment Support at Babcock, highlighted the company's commitment to maintaining the fleet's capability under the new agreement. Rear Admiral Paul Murphy, Director Major Programmes at Defence Support, also commended the teamwork that led to the contract award.

The exact number of vehicles in the fleet and their locations remain undisclosed. However, the white fleet typically consists of civilian support vehicles, such as logistics trucks, used by the MOD.

The Phoenix 3 contract will run for five years, with potential extensions adding up to five more. Babcock's role in managing the fleet is set to enhance operational efficiency while securing jobs. The MOD expects the centralised system to deliver long-term savings and improved fleet performance.