Doing Business with Defence
Opportunities and Innovation
in the Defence Supply Chain
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November ororshort
2023
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contexttotodocument
document
Doing Business with Defence
Services
A Helpdesk facility:
[email protected] – First contact
[email protected] - If you have spoken to us before
Attendance at trade exhibitions across the UK including delivering presentations on
doing business with defence (e.g. DPRTE, DSEI, SDSC & Procurex)
Hosting of webinars on how to access MOD opportunities, advertised on Defence
Sourcing Portal (DSP). Previous recordings are available on the Procurement Hub.
Provision of useful information for suppliers via DSP, GOV.UK Procurement Hub, and
LinkedIn Defence Procurement
Strategic Supplier Management | Doing Business with Defence Team
Spruce 3b, #1301, MOD Abbey Wood, Bristol, BS34 8JH
Page 1 of 15 Defence Procurement
Doing Business with Defence
Contents
Who we are ............................................................................................. 3
How we procure ................................................................................................. 3
The areas we work in ......................................................................................... 4
Defence Sourcing Portal .................................................................................... 5
Contracts Finder................................................................................................. 6
Find a Tender Service ........................................................................................ 6
Crown Commercial Service ................................................................................ 6
Procurement Pipelines ....................................................................................... 7
SME Action Plan ................................................................................................ 8
Innovation in the Defence Supply Chain ................................................. 9
Guidance.......................................................................................................... 11
Other Useful Information .................................................................................. 13
Annex – Major Suppliers ................................................................................ 14
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Doing Business with Defence
Who we are
We are one of the biggest public procurement organisations in Europe, and the single largest
customer for UK industry. Over the next decade we are committed to spending over £190 Bn on
equipment and support. We have a diverse range of requirements, including everything from
military fighting vehicles to education services, nuclear submarines to facilities management. Our
customers include our Armed Forces and national security agencies.
Our aim is to ensure that our customers are provided with the best capabilities to enable them to
protect the UK’s security and to advance the UK’s interests, both now and in the long term. We
encourage innovation and wider SME participation throughout our supply chain. We continue to
pursue policies and practices that make it easier for new and smaller businesses to identify,
compete for and win opportunities with the MOD. This helps us to deliver our vision of a vibrant,
sustainable, and competitive UK industrial base, while obtaining the best possible value for money
for the taxpayer.
How we procure
As a public sector organisation, we procure in a different way to industry, using competition where
appropriate. We set objective tender selection criteria, we are fair and transparent and will be held
accountable for procurement decisions in a way the private sector is not. We do not operate
preferred supplier lists. Our principles include non-discrimination, equal treatment, transparency
(act in fair and non-discriminatory manner), mutual recognition (of equivalent documents and
standard).
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Doing Business Opportunities and Innovation
with Defence in the Defence Supply Chain
The areas we work in
Technology: cloud and Equipment & Support: ships, Infrastructure: Construction,
digital, network services, submarines, aircraft, hard and soft facilities
software and technology vehicles, weapons, missiles, management, and property
products and services equipment maintenance and consultancy
repair
❖ Defence Digital (DD) is responsible for making ❖ Submarine Delivery Agency (SDA) is an
sure that effective digital and information Executive Agency who manage the procurement,
technology (D&IT) is put into the hands of the in-service support and disposal of UK nuclear
military and business front line. They lead on submarines, which are some of the most complex
defensive cyber strategy, capability development equipment in the world. SDA deliver capabilities to
and policy, whilst also supplying IT to 200,000 the Royal Navy that are essential to the
users across over 2000 defence sites across UK Continuous at Sea Deterrent (CASD), which is the
and globally.
cornerstone of our national security.
❖ Defence Equipment and Support (DE&S) DE&S
❖ Team Leidos provide essential services such as
manage a vast range of complex projects to buy,
storage and distribution for the MOD’s materiel,
support and supply vital equipment and services
including a global freight service and procurement
that the Royal Navy, British Army and Royal Air
Force need to operate effectively. The programme and inventory management of food, packed fuels,
of work ranges from jets and warships through to clothing, medical materiel and general supplies.
armoured vehicles and field kitchens.
❖ Defence Science and Technology Laboratory
❖ Defence Infrastructure Organisation (DIO) is (Dstl) ensures that innovative science and
the estate expert for defence, supporting the technology contribute to the defence and security
armed forces to enable military capability by of the UK. DSTL supply sensitive and specialist
planning, building, maintaining, and servicing science and technology services for MOD and
infrastructure. wider government.
The size and complexity of many of our projects means that we need to work closely with our major suppliers
(see annex) to ensure delivery of the defence programme. Opportunities therefore exist for suppliers of all
sizes, from large established defence contractors through to innovative smaller businesses, to get involved
in our procurement activity both as a prime supplier and as a sub-contractor.
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Doing Business with Defence
Opportunities for Business
Defence Sourcing Portal
There are exciting opportunities for new, non-traditional and adjacent sectors to do business
directly with the Ministry of Defence and indirectly with our major suppliers at sub-contract level.
The programmes we support are detailed in the Defence Equipment Plan these include
equipment/infrastructure and the defence estate.
The Defence Sourcing Portal (DSP) is an e-sourcing platform and one-stop-shop for contract
opportunities, tendering and information on doing business with the Ministry of Defence.
We advertise tender and contract opportunities valued over £10,000 on the DSP. Access and
registration to bid for MOD opportunities on the DSP is free of charge and suppliers are also
able to publish their sub-contracting opportunities on the portal. If you are interested in
advertising opportunities on the portal, click here. DSP also hosts important announcements for
industry. Suppliers will be sent alerts via email with opportunities that are relevant to their
industry, as well as emails informing them of market engagement events/webinars and MOD
announcements that may be of interest.
Help, Advice, and Information
Supplier Registration and
Opportunities
Defence Sourcing Portal Supplier Guide (CPV codes/PQQs etc)
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Doing Business with Defence
Contracts Finder
We also advertise on the Government’s Contracts Finder portal. Here central Government
Departments and other public bodies advertise tender and contract opportunities valued at
£10,000 and above. Access to Contracts Finder is free of charge.
Find a Tender Service
Information on public sector contract opportunities in the UK is published on the Find a Tender
Service (FTS):
• FTS is free to use and replaces the role of Tenders Electronic Daily, the Official Journal of the
EU (OJEU/TED) for procurements in the UK.
• FTS works alongside existing procurement portals such as Contracts Finder and Defence
Sourcing Portal (DSP), which can be used to access a wide range of opportunities to supply the
public sector.
Requirements with a value of less than £10,000 are not normally advertised; MOD procurement
teams undertake a market survey and select suppliers based on the best value for money.
Crown Commercial Service
We buy common goods and services via the Crown Commercial Service website. CCS are the
biggest public procurement organisation in the UK, they provide a wide range of common goods
and services across the public sector.
CCS commercial agreements include frameworks, which comprise common public sector
requirements, a list of suppliers who have been evaluated as capable of delivering the
requirements, and standard contract terms.
Frameworks can be divided into lots by product or service type. You can supply to one or more
lots or an entire framework.
Frameworks Library
MOD has published a Framework library which provides information on key purchasing
agreements to raise awareness about opportunities. These help to improve access and
overcome barriers when doing business with defence, which aligns with our SME Action plan, in
which we have committed to help improve the way Defence works with smaller businesses.
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Doing Business with Defence
Procurement Pipelines
Procurement pipelines are published, where available, to inform existing and potential suppliers
of plans to purchase, enabling the supply chain to better plan their activities and offer
reassurance of future work packages.
The MOD Acquisition pipeline is published on the GOV.UK website. There is
also a link in the top bar under ‘Acquisition Pipeline’ on the DSP. This is a
chance for industry to see where the MOD are planning to spend their money
in the next 12-18 months. This can allow companies to prepare for what is
coming up and be able to bid for contracts as soon as they go live.
The Defence Infrastructure Organisation (DIO) updated their procurement
pipeline: https://www.gov.uk/government/publications/dio-procurement-
pipeline in October 2022 and it informs existing and potential suppliers of
what DIO plans to buy on behalf of its customers. The publication of the
pipeline supports DIO’s commercial principles of being easier to do business
with, whilst building a broader and more diverse supplier base, including
small and medium-sized enterprises. (SMEs) The pipeline is updated
quarterly.
Leidos also publish their procurement pipeline: with separate tabs for
opportunities in the next six months, and another for opportunities further
than 6 months.
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SME Action Plan
We recognise that Small and Medium-sized Enterprises
(SMEs) are at the heart of the vibrant and flexible UK
defence industry. However, we acknowledge that SMEs
face unique challenges and barriers preventing them
from fulfilling their potential of delivering both defence
capability and contributing to UK prosperity. To improve
engagement with SMEs, the MOD published its second
SME Action Plan on 27th January 2022.
In the action plan, we set out how we will collectively
improve the engagement we have with SMEs. We want
to encourage acquisition teams to make it easier for
SMEs to do business with defence, and to ensure that
commercial strategies enable SMEs to be appropriately
considered at every stage of the acquisition process.
Opportunity and Innovation: The Defence Small and Medium-sized Enterprise Action Plan -
GOV.UK (www.gov.uk)
Hellios SME Portal
The Hellios SME Portal has been created in
collaboration with JOSCAR. In response to
the SME Action Plan it aims to improve
visibility of SMEs to buyers across defence,
aerospace and security sectors.
The portal is a free platform for SME
suppliers to register their product and
services for buyers, allowing them to
showcase their capabilities to JOSCAR
Prime Contractors and Defence HQ.
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Doing Business with Defence
Innovation in the Defence Supply Chain
We want to encourage Innovation in our business and attract new and non-traditional suppliers
to the defence supply base both directly with MOD and with our major suppliers. Our customers
have put Innovation high on their agenda and we expect this to be reflected in their future
requirements. Technology is creating both threats to, and opportunities for the UK’s security and
prosperity. Innovation is vital to maintaining our military advantage.
We have setup a new Innovation Fund (£800M over 10 years, beginning September 2016) to
encourage better collaboration with industry, academia and allies. It targets new providers to
boost the competitive advantage of UK defence, and find answers to our most pressing national
security questions from across sectors at pace. There are number of organisations which
support innovative ideas from suppliers, and these include:
DASA (Defence and Security Accelerator)
The Defence and Security Accelerator, which are co-located with Defence Science and
Technology Laboratory (Dstl), focuses on innovations which can provide advantage to defence
and national security to protect the UK from its adversaries. It funds the development of
suppliers’ innovative ideas and provides support through to potential application. The
Accelerator will also fund innovations for defence and security which support economic growth
and prosperity in the UK.
DASA funds innovation through two main mechanisms, Open Call offers suppliers the
opportunity to submit ideas to defence and security stakeholders, while Themed Competitions
offers suppliers the opportunity to submit proposals around specific government areas of
interest. More information on the Apply for funding page.
Ideas Marketplace
The Defence and Security Accelerator (DASA) have launched the Ideas Marketplace. The Ideas
Marketplace is an online networking Collaboration Platform where UK innovators can discuss,
collaborate and share ideas with like-minded users to overcome defence and security
challenges and help deliver the next generation of defence and security tools and services.
The Ideas Marketplace is designed to enable innovative UK organisations to engage with the
best people in defence and security, easily. It encourages collaboration between organisations
of all shapes and sizes, to foster new and dynamic relationships to make innovations a success.
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Doing Business with Defence
Defence Technology Exploitation Programme (DTEP)
The Defence Technology Exploitation Programme (DTEP) is a £16M programme to boost small
and medium-sized enterprise (SME) defence innovation. With the innovation of SMEs, the
resources of big suppliers and initial funding from government, the Defence Technology
Exploitation Programme (DTEP) is designed to bring the key components together to allow
pioneering projects to flourish.
DSTL (Defence Science and Technology Laboratory)
DSTL is one of the principal government organisations dedicated to science and technology in
the defence and security field. Dstl supplies specialist services to MOD and wider government,
working collaboratively with external partners in industry and academia worldwide, providing
expert research, specialist advice and invaluable operational support. One of DSTL’s
responsibilities include providing and facilitating expert advice, analysis and assurance on
defence procurement.
SME Searchlight
The Defence Science and Technology Laboratory is committed to working with a wider range of
innovative SMEs. This is underpinned by the SME Searchlight set up to attract SMEs and non-
traditional defence suppliers.
R-Cloud
DSTL have set up R-Cloud. Suppliers of Science and Technology can sign up to the dynamic
purchasing system to access opportunities from across the MOD. Companies can join at any
time during the R-Cloud term and receive targeted invitations to bid for opportunities tailored to
key capabilities and skills.
The Future Capability Group
The Future Capability Group (FCG) aims to provide Front Line Commands (FLC) and Defence
Equipment & Support (DE&S) with an improved and expanded delivery capability for innovation
projects and novel or cross cutting technologies. Futures Lab is a DE&S Future Capability Group
(FCG) sponsored service created to inform and accelerate future capability decisions through the
provision of impartial insights and knowledge from leading experts across industry and academia.
Futures Lab commercially enables early engagement with SMEs, academia, and industry at pace
as they provide solutions to complex MOD challenges. If you are interested in Future’s Lab, they
run an Introduction session every Monday, express your interest here.
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The Defence Growth Partnership
The Defence Growth Partnership is a unique collaboration between UK Government and
leading companies from the UK defence industry. It has been formed to meet the challenges of
increased international competition for defence business, and has created a collaborative
environment to enable the UK to offer the very best solutions to defence customers, tailored to
meet global customer needs, including the MOD.
UK Defence Solutions Centre
UK Defence Solutions Centre (UKDSC) has been created as part of the implementation plan for
the Defence Growth Partnership (DGP) and jointly funded by government and industry, the
UKDSC works closely with the UK’s MOD, BEIS and Department for International Trade – UK
Defence & Security Exports (DIT DSE), the UK defence industry and academia.
Innovate UK
Innovate UK is part of UK Research and Innovation, a non-departmental public body funded by a
grant-in-aid from the UK government. They drive growth by working with companies to de-risk,
enable and support innovation. They connect businesses to the partners, customers and
investors that can help them turn ideas into commercially successful products and services and
business growth. They also fund business and research collaborations to accelerate innovation
and drive business investment into research and development. Support is available to businesses
across all economic sectors, value chains and UK regions.
Guidance
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Knowledge in Defence
Knowledge in Defence (KiD) defines how we conduct, govern, and control our defence
acquisition process and is the primary bearer of all policy and guidance governing defence’s
project delivery and commercial functions. We’re making public sector procurement simpler and
more transparent, e.g. through acquisition reform and introducing simplified plain English short
form contracts for use in low value, less complex procurements. KiD provides the information,
guidance and instruction that set out how the MOD conducts acquisition business.
Selling to Government Guide for SMEs
The Cabinet Office has released a Selling to Government Guide for SMEs Selling to Government
Guide for SMEs. The guide supports SMEs who are wanting to bid for government contracts,
including opportunities in the defence sector, either directly, or in the supply chain. It also offers
top tips on bidding, where to look for contract opportunities and signposts to further information.
Social Value
Social Value is the consideration of the social, economic and environmental impact of our
projects and programmes. It has a lasting impact on individuals, communities and the
environment. The Government has significant opportunity and responsibility to maximise Social
Value benefits effectively and comprehensively through its commercial activity.
In September 2020, the Cabinet Office published Procurement Policy Note (PPN) 06/20
requiring additional social value benefits to be explicitly evaluated in all central government
procurement (where the requirements are relevant and proportionate) rather than just
'considered' as previously required. The Social Value Model set out in the PPN requires a
minimum of 10% of the total tender evaluation weighting to be allocated to specific social value
criteria.
Further information can be accessed on the gov.uk website including links to:
• Procurement Policy Note (PPN) 06/20
• The Social Value Model
• Guide to using the Social Value Model
• Social Value Model quick reference table
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Other Useful Information
UK Defence and Security Exports
UK Defence and Security Exports (UKDSE) is part of the Department for International Trade. UKDSE
provide specialist export advice and practical assistance, working closely with industry and government
departments including MOD, the Home Office and the Export Control Joint Unit (ECJU).
The UK Defence and Security Exports SME Support Team provides and supports a wide range of
events and activities designed to help UK small and medium-sized enterprises win overseas defence
and security business.
Cyber Security
The National Cyber Security Centre (NCSC) has brought together expertise from CESG (the information
assurance arm of GCHQ), the Centre for Cyber Assessment, CERT-UK, and the Centre for Protection of
National Infrastructure. The NCSC provides a single point of contact for SMEs, larger organisations,
government agencies, the general public and departments. We also work collaboratively with other law
enforcement, defence, the UK’s intelligence and security agencies and international partners.
The Defence Cyber Protection Partnership (DCPP) is a collaboration between Ministry of Defence
(MOD), Industry, and other Government departments. The Cyber Security Model (CSM) is a risk-based
proportionate approach to protecting MOD data in the supply chain. It will also help to protect companies
against data theft and ransomware. Since 2017, It has been mandated across all MOD contracts.
Useful links
• Security Policy
Government Functional Standard GovS 007: Security (publishing.service.gov.uk)
• Accreditation
CyDR defence industry ICT accreditation and risk balance case processes - GOV.UK (www.gov.uk)
MOD ICT security accreditation and the defence assurance risk tool (DART) (publishing.service.gov.uk)
• Facility Security Clearance (Formerly List X)
Security requirements for List X contractors - GOV.UK (www.gov.uk)
20180919_GovernmentSecurityRolesAndResponsibilities.pdf (publishing.service.gov.uk)
Defence Equipment and Support Principal Security Advisor - GOV.UK (www.gov.uk)
Procedure for UK contractors without a Facility Security Clearance (FSC) (publishing.service.gov.uk)
International Classified Changes
• Cyber Security Model
Cyber Security Model – Interim Process in support of DEFCON 658 - GOV.UK (www.gov.uk)
Cyber Industry Buyer and Supplier Guide (publishing.service.gov.uk)
Defence condition 658: cyber (flow-down) - GOV.UK (www.gov.uk)
Cyber Security Model: cyber risk profiles’ requirements - GOV.UK (www.gov.uk)
Def Stan 05-138 Issue 3 (publishing.service.gov.uk)
• Security Clearances
IPSA_Policy_May_2021.pdf (publishing.service.gov.uk)
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Annex – Major Suppliers
https://www.airbus.com/en/be-an-airbus-supplier
https://www.babcockinternational.com/who-we-
are/suppliers/becoming-a-supplier
https://www.baesystems.com/en/home
https://www.boeing.co.uk/boeing-defence-uk
(T&Cs, Supplier Code of Conduct etc.)
https://www.boeingsuppliers.com/
https://www.capita.com/
https://dxc.com/us/en
https://generaldynamics.uk.com/contact
https://kbrsupplier.com/Supplier/Supplier_Faq.aspx
www.leidos-supply.uk
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https://www.leonardo.com/en/suppliers/becoming-
a-supplier
https://www.lockheedmartin.com/en-
gb/suppliers.html
https://www.mbda-systems.com/suppliers/small-
medium-sized-entreprise/
www.qinetiq.com/campaigns/sme-hub
https://www.raytheon.co.uk/who-we-are/our-
partners
https://www.rolls-
royce.com/sustainability/customers-and-
suppliers.aspx#/
https://www.serco.com/suppliers
www.thalesgroup.com/en/europe/united-
kingdom/uk-suppliers
https://www.ultra-ice.com/index.php
https://www.ultra-ice.com/index.php
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Doing Business with Defence
Doing Business
with Defence
Opportunities and Innovation
in the Defence Supply Chain
November 2023
Page 16 of 15 Defence Procurement
