British company BAE Systems has secured two contracts from the UK Ministry of Defence (MoD) under the Future Maritime Support Programme (FMSP).
The two contracts are worth up to $1.8bn (£1.3bn) and stretch over a period of five years.
BAE said that the two contracts will commence in October this year following a transition period.
The contract will see BAE Systems continue delivering ship asset management, repair and maintenance for the Portsmouth naval flotilla under a $1.24bn (£900m) contract.
Furthermore, BAE will establish a joint venture (JV) with KBR to deliver ‘technology-led and data-driven’ facilities management and base dockside services as part of a $ 503.6m (£365m) contract.
Dubbed ‘KBS Maritime’, the JV will combine KBR’s expertise in the infrastructure asset management and services market, with BAE’s capability within Portsmouth Naval Base.
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BAE Systems Maritime Services business managing director David Mitchard said: “These new contracts will enable us to continue our vital role in supporting the Royal Navy, at home and abroad, building on our long history of delivery, investment and collaboration at Portsmouth Naval Base.
“Working with our customer, we’re proud of the improvements we’ve made at the base, delivering significant infrastructure improvements and reducing carbon emissions by 65%.
“We’re excited by the opportunity to continue delivering transformation alongside KBR and other new service providers to support the Royal Navy at Portsmouth, mitigating environmental impact of operations, whilst maintaining critical military outputs.”
The first FMSP contract covers class output management (strategy), design services (technical planning and design) and ship engineering (maintenance, repair and upgrade).
The second covers strategic estate management, infrastructure programme development as well as delivery and provision of operations, maintenance and alongside services.
KBS Maritime will further develop the Portsmouth base infrastructure.
KBR will also secure investment in the local community and ensure naval fleet support for the Royal Navy and the UK.