UK Defence News Round-up: Week 2 (2025)

Avon Protection Renews Contract with Thales UK

Avon Protection has announced the renewal of a significant multi-million-pound contract with Thales UK, aimed at supporting a critical defence program for the UK Armed Forces. This contract marks a continuation of a successful partnership that has lasted over a decade, solidifying Avon’s role in enhancing national security.

Under the terms of this new multi-year renewal, valued at up to £10 million, Avon Protection will supply essential capabilities to the UK defence sector over the next six years. This agreement not only underscores the importance of their longstanding relationship with Thales but also bolsters Avon’s commitments for the upcoming fiscal year.

Steve Elwell, President of Avon Protection, highlighted the strategic importance of the contract, stating it reflects the company’s contribution to maintaining a robust and resilient UK defence industrial base. He expressed eagerness to continue providing world-class capabilities from their facility in Melksham while pursuing innovative technologies to safeguard the nation.

Jos Sclater, Chief Executive Officer of Avon Protection, emphasized the collaborative efforts with Thales and other small and medium-sized enterprises (SMEs) in delivering the vital capabilities needed for national defence. He stated, “We are proud of the contribution we make to the national security of the UK.”

This contract renewal not only reinforces Avon Protection’s commitment to serving the UK military but also reflects the ongoing investment in maintaining and advancing defence capabilities during uncertain global times.

As the UK faces evolving defence challenges, partnerships like this one are crucial for ensuring the armed forces are equipped with the technology and systems necessary for effective national security.

Credit: BAE SYSTEMS

BAE Systems Secures $347M NERVE Contract

The US National Geospatial-Intelligence Agency (NGA) has awarded BAE Systems a significant five-year indefinite-delivery, indefinite-quantity (IDIQ) contract valued at $347 million for the National System for Geospatial-Intelligence (NSG) Enterprise Repository and Virtual Environment (NERVE) program. This contract represents a major step in modernizing the agency’s geospatial intelligence capabilities.

The NERVE initiative aims to transform the NSG Consolidated Library (NCL) by migrating its operations from a physical data centre to a more sophisticated cloud-based data service architecture. The consolidation of geospatial intelligence (GEOINT) resources into a modern framework will facilitate quicker access and analysis of vast amounts of information for NGA analysts, regardless of their location.

Meg Redlin, BAE Systems’ product line director for Mission Systems, noted the upgrade’s significance for the Intelligence Community and the Department of Defence. “NERVE allows critical data to flow rapidly through the NSG workflow, supporting predictive analytics and mission readiness,” she stated, highlighting the importance of timely access to information.

Work on the NERVE program will be conducted at various BAE Systems facilities in San Diego, Rome, New York, and Reston, Virginia, as well as at NGA sites in St. Louis and Washington, D.C. The project includes substantial ongoing cloud deployments, which are set to extend throughout the contract period.

This contract underscores BAE Systems’ commitment to enhancing national security through advanced technology, ensuring that geospatial intelligence is delivered efficiently and effectively to meet the growing demands of defence operations in an ever-evolving landscape.

Credit: ELAC

ELAC Secures €16.4M Italian Navy Contract

British defence group Cohort has announced that its German subsidiary, ELAC Sonar GmbH (ELAC), has successfully obtained a €16.4 million contract amendment to provide an additional sonar system for the Italian Navy. This amendment comes as part of the Italian Navy’s new-build submarine program and follows the activation of a contractual option.

Under this agreement, ELAC will deliver the sonar system for an extra submarine, complementing the systems currently under production. The amended contract raises the total value of the original agreement, awarded in 2021, to over €100 million, now covering sonar systems for four submarines.

Andy Thomis, Chief Executive of Cohort, emphasized the order’s significance, stating that it reflects ELAC’s capability to meet the Italian Navy’s rigorous specifications. He highlighted ELAC’s Sphere digital hydroacoustic technology, which represents a significant advancement in underwater performance.

The Sphere sonar technology is recognized as one of the most sophisticated systems globally, enhancing the Navy’s ability to detect, classify, and track underwater threats. This aligns seamlessly with the high-performance demands of the Italian Navy.

Thomis noted that this contract, along with other recent achievements for ELAC and Cohort, enhances the group’s visibility in future revenues. The ongoing provision of advanced sonar solutions cements ELAC’s reputation as a leader in underwater acoustic technology and its critical role within Cohort’s portfolio.

Credit: Thales

Thales Secures £245M MoD Maritime Deal

The UK Ministry of Defence (MoD) has awarded a Single Source Qualifying Defence Contract valued at £245,434,247 to Thales UK Ltd for the ongoing support of key maritime communications systems within the Royal Navy (RN). The contract, titled the Maritime Communications Capability Support (MCCS), encompasses maintenance, obsolescence management, and upgrades for both internal and external communication systems across various current and future warships.

Under the MCCS, Thales will provide technical and logistical support for several critical RN communication platforms. These include Integrated Communications Systems (ICS) for secure voice and data communications, KRS Systems for cryptographic communications, and V/UHF Communication Systems for short-range coordination capabilities between ships and aircraft.

The vessels benefiting from this contract include the Royal Navy’s legacy platforms such as the Type 23 Frigates, high-tech Type 45 Destroyers, and the Queen Elizabeth-Class (QEC) aircraft carriers. Additionally, the agreement includes provisions for future support of the new Type 31 (T31) Frigates when they enter service, emphasizing the importance of seamless communication for operational effectiveness and situational awareness.

Notably, the contract also encompasses additional non-core tasks and options for managing obsolescence across the fleet. It has been exempted from the Defence Security Public Contracting Regulations (DSPCR) due to security concerns vital for protecting national defence interests.

By securing the MCCS contract, the MoD reaffirms its commitment to equipping the Royal Navy with reliable, cutting-edge communication systems, which are essential for maintaining the operational readiness and global presence of the UK’s maritime forces.

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