Question to the Ministry of Defence:

To ask Her Majesty’s Government when the last two Warship Support Modernisation Initiative contracts were awarded for (1) HMNB Clyde, (2) HMNB Devonport, (3) HMNB Portsmouth; what cost-saving targets were set for each of those contracts; and whether those targets were achieved in each case.

The Warship Support Modernisation Initiative (WSMI) contracts awarded for Her Majesty’s Naval Bases at Clyde, Devonport and Portsmouth did not include specific savings targets. The three WSMI contracts were placed under Target Cost Incentive Fee (TCIF) arrangements, through which the companies were incentivised (via gain-share arrangements) to deliver the agreed contractual outputs within or below the agreed Target Cost for each contract.

The three contracts all delivered gain-share benefits.