House of Lords written question – answered on 29th July 2014.

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Photo of Lord Moonie Lord Moonie Labour

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.

Photo of Lord Astor of Hever Lord Astor of Hever The Parliamentary Under-Secretary of State for Defence

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.

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