Asked by: Lord Beamish (Labour - Life peer)
Question to the Ministry of Defence:
To ask His Majesty's Government what discussions they had with Serco prior to awarding the Defence Marine Services Next Generation Contracts about the ability of UK shipyards to build the vessels required under the contract.
Answered by Lord Coaker - Minister of State (Ministry of Defence)
Prior to awarding the Defence Marine Services Next Generation In-Port Services contract in April 2025, the Ministry of Defence (MOD) conducted several rounds of market engagement activities to encourage participation from across the UK shipbuilding sector, including Small and Medium-sized Enterprises. The intention was to maximise domestic involvement.
Despite these efforts, only a single compliant bid was received, necessitating a single-source approach to maintain programme momentum and ensure continuity of essential services. Serco was free to select its subcontractors, and the MOD was not permitted to require Serco to discriminate on grounds of nationality. The selection of Damen was based on Serco’s assessment of programme requirements and was consistent with all applicable procurement regulations. Damen Shipyards Group was selected by Serco.
The Procurement Act, which came into force in February 2025, offers greater flexibility to prioritise British companies in strategically important sectors such as shipbuilding.
Asked by: Lord Beamish (Labour - Life peer)
Question to the Ministry of Defence:
To ask His Majesty's Government which minister in the Ministry of Defence has responsibility for the National Shipbuilding Office, and how many times they have met in the past six months.
Answered by Lord Coaker - Minister of State (Ministry of Defence)
The Minister for Defence Readiness and Industry oversees the work of the National Shipbuilding Office (NSO) in the Ministry of Defence. The NSO also works closely with Ministers and their officials in all Departments with interests in shipbuilding.
The National Shipbuilding Office's senior leadership has attended several meetings in the past six months with either the current Minister for Defence Readiness and Industry or his predecessor as Minister for Defence Procurement and Industry. The team continues to engage with the Minister formally and informally on an ongoing basis, including through his chairing of the Small Ministerial Group on Shipbuilding.
Asked by: Lord Beamish (Labour - Life peer)
Question to the Ministry of Defence:
To ask His Majesty's Government what discussions they had with the National Shipbuilding Office about the requirements of the vessels needed as part of the Defence Marine Services Next Generation Contracts.
Answered by Lord Coaker - Minister of State (Ministry of Defence)
The Defence Marine Services Next Generation (DMS-NG) programme did engage with the National Shipbuilding Office (NSO) on the requirements of the vessels. The NSO’s recommendations were considered by the Ministry of Defence alongside other criteria. The Government is committed to supporting British industry in the future and programme teams will continue to engage the NSO.
Asked by: Lord Beamish (Labour - Life peer)
Question to the Ministry of Defence:
To ask His Majesty's Government what contracts they have made with Serco under the heading “Defence Marine Services - Next Generation”, and what is the value of each of those contracts.
Answered by Lord Coaker - Minister of State (Ministry of Defence)
The following contracts were awarded to Serco under the Defence Marine Services - Next Generation (DMS – NG) programme. All have start dates of 1 October 2025. Each contract was advertised and sourced via competitive tender, although Serco was the only tenderer for the In-Port Marine Services contract (inclusive of the Vessel Replacement Programme):
In-Port Marine Services and the Delivery of a Vessel Replacement Programme (10 years) | £878 million |
Inshore Support to Military Training, Testing and Evaluation (5 years) | £62 million |
Offshore Support to Military Training and Exercises (10 years) | £94 million |
Note: These are contract costs at time of award and do not include Authority Costs and Risk.
Asked by: Lord Beamish (Labour - Life peer)
Question to the Ministry of Defence:
To ask His Majesty's Government what assessment they have made of the impact of the decision to award the Defence Marine Services Next Generation Contracts to Serco on UK shipbuilding jobs.
Answered by Lord Coaker - Minister of State (Ministry of Defence)
The Ministry of Defence (MOD) recognises the importance of supporting UK shipbuilding and undertook market engagement to encourage bids from UK shipyards for the Defence Marine Services Next Generation (DMS-NG) contracts. Despite these efforts, only one compliant bid was received, and Serco, as the prime contractor, was free to select its subcontractors.
The Government remains committed to supporting UK shipbuilding, and recent reforms to public procurement, including the Procurement Act 2023, which came into force in February 2025, provide greater flexibility to prioritise British companies in strategically important sectors. The MOD continues to work with the National Shipbuilding Office to maximise opportunities for UK suppliers in future procurements.
The operational necessity of the DMS-NG contracts and the need to maintain critical maritime capabilities were key considerations in the procurement process, as was programme affordability at the time. However, some £200 million will still be spent through DMS-NG at British boatyards for the maintenance of the new vessels, which will bring benefits to the UK ship repair sector.
Asked by: Lord Beamish (Labour - Life peer)
Question to the Ministry of Defence:
To ask His Majesty's Government how many contracts the Ministry of Defence has with Damen either directly or through contracts with third parties, and what is the value of those contracts.
Answered by Lord Coaker - Minister of State (Ministry of Defence)
The Ministry of Defence has no direct contracts with Damen. We have identified one contract through a third party, Serco, for the Defence Marine Services Next Generation In Port Services Contract which encompasses the Vessel Replacement Programme. Damen Shipyards is a subcontractor for this programme with the value of this subcontract representing approximately £200 million, 22% of the total In-Port Services contract value. The decision to award the contract to Damen Shipyards Group was made by Serco.
Asked by: Lord Beamish (Labour - Life peer)
Question to the Ministry of Defence:
To ask His Majesty's Government what assessment they have made of the ability of Damen to deliver as a subcontractor under the Defence Marine Services Next Generation Contracts following Damen's receipt of an emergency loan from the Dutch Government.
Answered by Lord Coaker - Minister of State (Ministry of Defence)
The Defence Marine Services Next Generation procurement was carried out in accordance with the Defence and Security Public Contracts Regulations 2011 (DSPCR), under which Serco, as prime contractor, was free to select its own supply chain. The Procurement Act, which came into force in February 2025, offers greater flexibility to prioritise British companies in strategically important areas.
The Ministry Of Defence (MOD) is aware of ongoing legal proceedings against Damen in the Netherlands, it continues to monitor proceedings and will take appropriate action should a conviction occur.
The MOD is aware of the loan provided by the Dutch Government to Damen. Serco, as prime contractor, has undertaken its own analysis of Damen’s financial position and has advised that there is no immediate risk to delivery of the Vessel Replacement Programme. Both the MOD and Serco will continue to monitor the situation as part of routine contract management.
Asked by: Lord Beamish (Labour - Life peer)
Question to the Ministry of Defence:
To ask His Majesty's Government what investigation they have undertaken into the award to Damen under the Defence Marine Services Next Generation Contracts following the prosecution of Damen in the Netherlands for bribery.
Answered by Lord Coaker - Minister of State (Ministry of Defence)
The Defence Marine Services Next Generation procurement was carried out in accordance with the Defence and Security Public Contracts Regulations 2011 (DSPCR), under which Serco, as prime contractor, was free to select its own supply chain. The Procurement Act, which came into force in February 2025, offers greater flexibility to prioritise British companies in strategically important areas.
The Ministry Of Defence (MOD) is aware of ongoing legal proceedings against Damen in the Netherlands, it continues to monitor proceedings and will take appropriate action should a conviction occur.
The MOD is aware of the loan provided by the Dutch Government to Damen. Serco, as prime contractor, has undertaken its own analysis of Damen’s financial position and has advised that there is no immediate risk to delivery of the Vessel Replacement Programme. Both the MOD and Serco will continue to monitor the situation as part of routine contract management.
Asked by: Lord Beamish (Labour - Life peer)
Question to the Ministry of Defence:
To ask His Majesty's Government what discussions they have had with Serco about the delivery of the Defence Marine Services Next Generation Contracts and the ability of Damen to deliver as a subcontractor.
Answered by Lord Coaker - Minister of State (Ministry of Defence)
The Ministry of Defence holds regular and detailed discussions with Serco, the prime contractor for the Defence Marine Services Next Generation In-Port Services contract, regarding the delivery of the contract.
Asked by: Lord Beamish (Labour - Life peer)
Question to the Ministry of Defence:
To ask His Majesty's Government what discussions they have had with local authorities, combined authorities and industry representatives in the North East regarding the potential of an "always on" munitions factory in the region.
Answered by Lord Coaker - Minister of State (Ministry of Defence)
It is vital we invest our defence spending across UK whenever possible to grow our economy and industrial base. As set out in our recent publication UK Defence Footprint, MoD spent £178 million in the North East in 2024 to 2025. To support economic growth, our industrial base and defence capacity, we have committed £1.5 billion in the Strategic Defence Review to move munitions production to “always on” and build six new munitions and energetics factories, taking our total munitions spend this parliament to £6 billion. The MOD is carefully considering arrangements for those factories, including their potential locations, and more detail will be set out in due course.