Atomic Weapons Establishment Contract

Michael Fallon Excerpts

Thursday 21st April 2016 Written Statements

[The Secretary of State for Defence (Michael Fallon)]

I am announcing the successful completion of a review of the Department’s contract with one of its key suppliers, AWE Management Ltd (AWEML), a joint venture between Lockheed Martin Inc., Jacobs Inc. and Serco. The contract is for the management and operation of the AWE sites at Aldermaston, Burghfield and Blacknest.

As with all major commercial programmes, this contract is kept under regular review to ensure it continues to meet the Ministry of Defence’s requirements in terms of performance, affordability and value for money. As a result of the review, the contract with AWEML has been improved. It provides the opportunity for higher performance incentives, as well as reductions if targets are not met. The duration of the contract is unchanged, running through to 2025. It will also now be a qualifying defence contract under the terms of the Defence Reform Act 2014 and single source procurement framework.

The core commitment in the AWE management and operation contract remains extant—to provide and maintain the nuclear warhead stockpile for the UK’s nuclear deterrent, efficiently and effectively without compromising safety or security, for as long as the Government require.

[HCWS689]