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.

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.