Babcock Regulatory News (BAB)

1 August 2014

Babcock International Group PLC (Babcock)

Defence College of Technical Training Electro-Mechanical Training Contract (DCTT EMTC) - Notification of Contract Award

Babcock, the UK's leading engineering support services organisation, today announces that it has been awarded a new contract to supply and support training to the Armed Forces. The contract will be in support of training at the Defence College of Technical Training and be located at their following Schools:

· The Defence School of Marine Engineering at HMS SULTAN in Gosport

· The Royal Navy Aeronautical Engineering and Survival School at HMS SULTAN

· The Nuclear Department based at HMS SULTAN (part of the Defence Academy)

· The Defence School of Electronic and Mechanical Engineering at Arborfield and Bordon

· The School of Army Aeronautical Engineering (Arborfield)

· The Royal Electrical and Mechanical Engineers (REME) Arms School at Arborfield

The total contract value over the five year contract period including relocation and options to extend for two single year periods is expected to be up to £180 million. Service commencement will be at the beginning of November 2014.

The contract is part of the first tranche of the Defence Technical Training Change Programme, which aims to co-locate technical training for the Armed Forces within expanded facilities on the old RAF station at MOD Lyneham, Wiltshire.

Babcock will be primarily responsible for the delivery, design and scheduling of training on each of the sites and will also provide support to equipment used in training as well as a number of other functions including asset management, administrative support and medical support.

Training will cease at Arborfield and Bordon in September 2015 and will relocate to MOD Lyneham. Following staff relocation, Babcock will begin the delivery of the Army's REME training at MOD Lyneham by November 2015, with a full operating capability in place by February 2016.

Babcock currently delivers the training under three separate contracts but sees significant opportunity through the consolidation of management structures and colocation of Arborfield and Bordon training onto a single site at MOD Lyneham.