UK MoD renews nuclear deterrent contract

3 April 2016 (Last Updated April 3rd, 2016 18:30)

The UK Ministry of Defence (MoD) has awarded a contract to AWE Management, a joint venture between Lockheed Martin, Jacobs and Serco, to continue managing the country's nuclear deterrent.

The UK Ministry of Defence (MoD) has awarded a contract to AWE Management, a joint venture between Lockheed Martin, Jacobs and Serco, to continue managing the country's nuclear deterrent.

Under the terms of the agreement, the company will manage and operate atomic weapons establishment sites at Aldermaston, Burghfield and Blacknest.

UK Defence Secretary Michael Fallon said: "This contract supports the weapons for our nuclear deterrent that keeps us safe while delivering better value for money."

The company will work towards maintaining the nuclear warhead stockpile while ensuring full safety and security on behalf of the MoD.

"This contract supports the weapons for our nuclear deterrent that keeps us safe while delivering better value for money."

The contract will provide the MoD with greater flexibility to vary activity with changes in funding and other programme demands.

Serco Group CEO Rupert Soames said: I am delighted that the UK Government has chosen to secure the operation and management of the Atomic Weapons Establishment through AWE ML, and that Serco will continue to play a central role in supporting a vital component of our national security and scientific expertise."

The contract will offer performance incentives and impose penalties for unmet targets.

Subject to regular pricing reviews, the contract will run until 2025.