SMEs take leading role in multi-million-pound UK naval support deals

Several UK SMEs will play a central role in maintaining and supporting nearly 3,000 military vessels across the UK Armed Forces.  According to the announcement from the Ministry of Defence (MoD) on 25 March, five suppliers have been awarded contracts, three of which are SMEs: Golden Arrow Marine, UK Docks, and Griffon Marine Ltd.  

Additional contracts were awarded to Babcock and Serco.  

Together, the companies will provide support to a wide range of smaller vessels, including training boats, high-speed craft and the Royal Navy’s P2000 patrol vessels.  

The agreements run until 2033 and are expected to channel more than GBP250 million exclusively into UK-based businesses. 

The three SMEs are expected to play a significant role in delivering the work, supporting regional shipyards, providing specialist marine services and offering skilled employment across the country.  

It will also contribute to reopening docks, reinforcing local industrial capacity. 

The contract awarded to UK Docks, one of the SME contractors, illustrates the scale of opportunity created by the framework. The Teesside-based company has secured three contracts worth GBP84 million over seven years, beginning on 1 April. 

For the SME, the longevity of the contract is seen as particularly important. “It’s a big contract and it’s a long-term contract for seven years,” Ben Mason, Business Development Director at UK Docks, told DSEI Gateway at the DPRTE event in Farnborough.  

The company will carry out repair and maintenance work across several vessel categories, including Royal Navy and Royal Fleet Auxiliary boats, police vessels at Portsmouth, Plymouth and Faslane, and Vahana-class workboats operating in the UK.  

UK Docks employs around 240 people across five entities and has built its defence business over 25 years, following its first major MoD contract in 2018. The company operates both defence and commercial ship repair activities, including work for the oil and gas sector. 

The combined fleet of vessels supported under the framework plays a key role in day-to-day operations, including training, patrol and security tasks that underpin the protection of UK waters. 

The contracts form part of a broader government push to use defence spending to strengthen domestic industry, with SMEs positioned as key delivery partners. For companies such as UK Docks, the agreements also provide a platform for future growth. 

“We’d like to win more MoD work, it provides a really good bedrock of sustainable work over a prolonged period, allows us to invest, and allows us to grow,” Mason added.