The UK Ministry of Defence is set to launch a £22 billion procurement programme, featuring nearly £14 billion worth of new contracts, as part of a strategic push to modernise capabilities and boost defence industry innovation.
The UK Ministry of Defence (MOD) is poised to embark on an extensive procurement programme totaling over £22 billion, signalling a major investment in the future capabilities and sustainment of the nation’s defence forces. Defence Equipment &...
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amp; Support (DE&S), the MOD’s procurement arm, has laid out a comprehensive schedule of new tenders, re-procurements, and contract extensions spanning the remainder of the decade, highlighting an intense period of activity from late 2025 through 2031.
At the heart of this procurement horizon lies the forthcoming release of 29 new requirement contracts valued collectively at nearly £14 billion. Foremost among these is the Defence Test & Evaluation Services (Future) contract, scheduled for publication in January 2026, which alone commands a staggering £4.5 billion over 15 years. This contract is critical to ensuring that UK armed forces equipment is rigorously tested and evaluated to meet evolving operational demands, reflecting continuing commitments to maintaining cutting-edge military readiness.
The pipeline’s phased schedule sees eight major tenders anticipated by the end of 2025 worth just under £800 million, followed by a significant surge in contract opportunities in 2026 with nine tenders valued at nearly £4.7 billion. The subsequent five years from 2027 to 2031 project smaller but strategic contracts, indicating a sustained focus on capability refreshment and technology integration.
Alongside new acquisitions, DE&S plans extensive re-procurement activity to maintain existing capabilities, with 21 contracts valued at over £8.3 billion. Particularly notable is the Naval Support Integrated Global Network (NSIGN) Ships and Naval Bases contract, expected in September 2026, which alone is worth nearly £7.9 billion over ten years. This vital support package underpins the operational readiness and infrastructure of the Royal Navy, underscoring the strategic priority of naval power projection and maritime security.
While large-scale contracts dominate the headline figures, the MOD has reaffirmed its commitment to engaging Small and Medium Enterprises (SMEs), setting aside around £225 million across 10 new tenders to foster innovation and competitive supply chains beyond the traditional prime contractors. This aligns with broader government strategies to diversify defence procurement, encourage regional economic growth, and nurture burgeoning defence technologies.
Recent UK government announcements provide additional context and detail to the MOD’s strategic objectives. For instance, major contract extensions with British defence firms have highlighted sustained efforts to retain critical skills and bolster military readiness. A £1.6 billion, five-year extension with Babcock, supporting 1,600 jobs, safeguards maintenance and spare parts supply for armoured vehicles and tanks. Similarly, a £1.5 billion contract extension with QinetiQ for test and evaluation services supports 1,200 jobs and an extensive supply chain involving hundreds of SMEs, directly linking to the long-term test and evaluation contract featured prominently in the DE&S pipeline.
The Defence Infrastructure Organisation (DIO) has also published its procurement pipeline, detailing future spending on infrastructure projects valued at around £3 billion annually to maintain and upgrade facilities supporting UK forces both at home and overseas. This infrastructure focus complements equipment acquisition and support contracts, emphasising the integrated nature of defence readiness that spans hardware, ecosystems, and services.
Meanwhile, the UK government is boosting overall sector competitiveness and innovation through a £2 billion expansion of UK Export Finance lending capacity to unlock allied orders and a £5 billion investment programme targeting next-generation defence technologies. This investment prioritises autonomous systems and Directed Energy Weapons, including the DragonFire high-power laser system, to ensure Britain remains at the forefront of defence innovation.
Taken together, these initiatives portray a robust and forward-leaning defence procurement strategy designed to sustain operational readiness, modernise capabilities, and foster a vibrant defence industrial base that includes a diverse range of suppliers. The clustering of major contract releases and re-procurements in the period from late 2025 through 2026 signals a critical window for industry engagement, with implications for UK defence jobs, technology development, and strategic military advantage well into the 2030s.
Source: Noah Wire Services
