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The Defence Budget

2008 £38.1bn* 2009 £41.9bn* 2010 £43.5bn* 2011 £41.8bn* *UKPUBLICSPENDING.CO.UK

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The Defence Budget

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  1. 2008 £38.1bn* 2009 £41.9bn* 2010 £43.5bn* 2011 £41.8bn* *UKPUBLICSPENDING.CO.UK Each year the UK MoD spends around £16 billion on a wide range of goods and services to equip and support the Armed Forces and to meet defence estate management requirements. The MOD is British industry’s single largest customer, with 32,000 suppliers at present. The Defence Budget

  2. According to the latest figures (2009/SIPRI), the UK is the fourth highest spender (in cash terms) on Defence in the world behind only the USA, China and France

  3. The MoD currently has around 250,000 Service personnel stationed throughout the world. In addition to state-of-the-art equipment and support services they also need: Clothing, feeding, housing and related facilities and services (eg their homes need furnishing, their windows need cleaning and their bins need emptying). They also require sports facilities and equipment for their leisure time. The MoD's medical, dental, fire and police services require equipment to enable them to function effectively and efficiently. Its large fleet of vehicles require fuel, spares and refurbishment; and its bands require musical instruments.

  4. If a company can provide a product or a service there is a reasonable likelihood that the MoD may have a requirement for it either directly or indirectly at some stage in the future.

  5. There are significant sub-contract opportunities created as a result of the many new Prime Contracts awarded annually, involving a wide variety of goods and services. Over the last few years this has increasingly been the main way for smaller companies to become involved in the defence market as part of the supply chain. Sub-contracts

  6. The Prime Contractor is responsible for his supply chain and ensures that the MoD's policy of competitive tendering, fair treatment of companies at sub-contract level and long-term value for money is carried out. Sub-contracts

  7. The Directory of Prime Contractors contains brief details of the MoD’s Prime Contractors which were paid £5 million or more by the MoD. These Prime Contractors have current contracts with the MoD covering a wide variety of products and services, and the MoD recognises its tier one Prime Contractors will have existing supply chains. The MoD wants to help companies, particularly SMEs, to identify opportunities that will emerge across the defence supply chains. Find the Prime Contractors…...

  8. Over £500 million (7 Organisations) £250 - £500 million (11 Organisations) £100 - £250 million (29 Organisations) £50 - £100 million (38 Organisations) £25 - £50 million (51 Organisations) £10 - £25 million (95 Organisations) £5 - £10 million (139 Organisations) Source: DASA (Defence Expenditure Analysis) MoD Prime Contractors List

  9. Over 370 Prime Contractors named….. http://www.dasa.mod.uk DASA is responsible for publishing all of the National Statistics on Defence

  10. MoD Defence Contracts Bulletin (MoD DCB) is the only official publisher of UK MoD contracts. http://www.contracts.mod.uk Access to the market

  11. PUBLISHERS OF MOD DEFENCE CONTRACTS BULLETIN: BiP Solutions Medius, 60 Pacific Quay, GLASGOW G51 1DZ T: 0141 332 8247 F: 0141 331 2652 E: enquiries@bipcorporate.com

  12. FOR FIRMS WISHING ANY FURTHER ADVICE OR GUIDANCE ON SELLING TO THE MOD: Defence Suppliers Service, Supplier Relations Team, Abbey Wood South, Larch 2a, #2211, BRISTOL BS34 8JH Help desk: T: 0117 913 2844

  13. Peter King Partnership for Profit Improvement Promotes working in clusters Complementary businesses benefit if they work together Good Advice……

  14. Defence Systems and Equipment International exhibition “The world’s largest fully integrated defence and security exhibition, bringing together senior international trade and military experts from across the entire supply chain” Exhibitions

  15. If you’re a manufacturer ISO 9001:2008 MJ Allen also working towards ISO 14001(Environment) ISO 18001(H&S) Get Qualified…..

  16. Our links with the MoD have changed over the years Had to evolve, as the MoD and it’s purchasing policies changed, going from a direct contractor with the MOD, under the AQAP 4 approval (originally Def Stan 05/24) to being a supplier to MOD Prime Contractors under our BSEN ISO9001: 2008 approval We supply Aluminium, Copper Based Alloys, Grey and S.G. Iron Castings to a wide spectrum of Defence Contractors in the UK Defence work

  17. THE DS25 & DS30 SERIES GUN MOUNT Highly acclaimed, the MSI naval weapon system fulfils a multi role requirement and is fitted to all classes of vessel as a primary armament on patrol craft and Mine Countermeasure vessels and as secondary armament for frigates and larger vessels. Known as the DS25/30 series, it is gyro stabilised, electrically operated and self contained gun mounting featuring a choice of cannon, control mode and sights. It has low magnetic, radar and IR signatures and excellent ergonomic availability, reliability and maintainability (ARM). The DS25/30 naval gun has already been accepted for supply to seven countries

  18. SeaGnat The Seagnat Control System is a decoy system used on many NATO warships to safeguard against incoming missiles. Each unit consists of six launchers that can be loaded with different rounds, depending on the threat. The rounds (eg chaff) are launched as decoys to trick incoming missiles into missing the ship or to prematurely detonating.

  19. In addition to the aforementioned we supply via Prime Contractors into the National Health such as Varian Medical Systems

  20. Good for your reputation….. You may also find that trading successfully with the public sector can give added credibility with private sector customers. Why sell to the Government?

  21. Small companies are often successful in public sector contracting because they can offer: Expertise unavailable in larger companies A better understanding of their products A better understanding of client requirements A willingness to work closely with clients in partnership Better value for (our) money Why sell to the Government?

  22. Why to sell to the Government? Public-sector organisations are good customers They have to be fair, honest and professional in the way they choose suppliers and in any dealings with them Public Sector organisations are less likely to be subject to fluctuations in the market

  23. You will get paid…. Public-sector organisations have to pay accounts within 30 days (or any other agreed credit period) of receiving a valid bill or invoice. Why sell to the Government?

  24. Prompt Payment “BIS aims to reduce invoice payment times to 10 working days and all valid goods and services invoices received are paid as soon as they have been authorised by the BIS officials responsible for the contract. We are applying this policy to all suppliers of goods and services but will not be changing our existing contractual terms and conditions.”

  25. The on-line public procurement course "Winning the Contract" is now a FREE, nationally available online training resource which all businesses can access. Helpline on 0800 101 901

  26. This course will help you to be able to: Identify the advantages and disadvantages of dealing with public bodies Understand how different types of contract are defined, advertised and dealt with Understand approved supplier lists and framework agreements Search for and find public sector opportunities Identify the key stages in the tendering process.

  27. The work is out there They need you Get qualified Get on the approved lists Access the websites with contracts Find out who has the big contracts Be persistent Don’t be intimidated….Size isn’t everything……. Finally…

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