Babcock secures £60M UK defence contract for fleet management innovation
Babcock has won a major five-year contract from the UK Ministry of Defence to manage its non-combat vehicle fleet. The deal, worth around £60 million, will cover servicing, maintenance, and fleet management for cars, vans, trucks, and specialist vehicles. Around 60 jobs are expected to be secured as a result of the agreement.
The contract, named Phoenix 3, was awarded in March 2026 and includes options for an additional five years. Under the terms, Babcock will handle vehicle sourcing, procurement, repairs, and accident management for the MOD's entire white fleet. This fleet supports both UK-based and overseas operations, including routine business, mobility tasks, and specialist missions.
As part of the agreement, Babcock will also introduce a tailored Fleet Management Information System (FMIS) to streamline operations. The new system aims to improve efficiency through centralised management and economies of scale. The MOD's white fleet plays a key role in maintaining operational readiness for both day-to-day and contingency missions. The vehicles covered by the contract include a mix of cars, vans, trucks, and non-combat specialist units. While the exact number of vehicles has not been disclosed, the fleet is essential for defence logistics and support functions. Babcock's role will ensure the fleet remains reliable and cost-effective for the MOD's needs.
The £60 million deal will support around 60 jobs within Babcock's operations. The contract's focus on centralised management and digital tools is designed to enhance efficiency across the MOD's vehicle fleet. Extensions could see the partnership continue for up to a decade.
