MoD's £4bn spend with BAE

Posted: 12/02/2010
Defence Management Journal Online
Rate this Article: 
Be the first!
The Ministry of Defence spent over £3.98bn with BAE Systems or its subsidiaries in the financial year 2009/10, newly released data has revealed.
A list of the ministry's top 100 suppliers, obtained under the Freedom of Information act by IT news website Kable, has shown that out of the ministry's £24.8bn spend with its top 100 suppliers, BAE and its subsidiaries received the most overall.
Over £1.1bn was paid to BAE Systems (Operations), and more than £821m to BAE Systems Surface Ships. Over £455m was spent with BAE Systems Electronics, and £348m was paid to MBDA UK.
Including subsidiary companies, Babcock was paid the second highest amount, over £1.1bn, with service company Serco third on the combined list with £1.05bn.
The figures also showed that over £329m was paid to the US government and Treasury and almost £49m was paid to the Canadian government.
The biggest individual recipient of MoD money was the NATO EF2000 & Tornado Development, Production and Logistics Agency, which received over £1.77bn.
IT company HP Enterprise Services, the ministry's prime contractor for IT, received £806m in 2009/10.
A Ministry of Defence spokesman said: "The MoD is committed to providing our armed forces with the equipment they need to carry out their jobs. Contracts are awarded, in accordance with EU regulations, to companies who offer the best value for money to meet our requirements and fulfil our sovereign capability needs."