Military Contracts: A Guide to Defence Tenders

It may surprise you to know that rather than being funded by large business enterprises, smaller businesses have been behind some of the UK’s biggest defence projects.

Ministry of Defence (MOD) organisations like the Defence Equipment and Support (DE&S) and Defence Infrastructure Organisation (DIO) work with a diverse range of SME suppliers. They provide all types of suppliers, whatever the size, with contractor and sub-contracting opportunities to support national security.

To this end, defence sector organisations have implemented policies to partner with small and medium-sized suppliers in public procurement.

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How much does the UK spend on defence and security?

In the 2023/2024 financial year, the UK spent £54.2 billion on defence. It’s expected to rise by 4.5% in 2024/2025. Currently, it amounts to 2.3% of the UK’s GDP, but, according to the government’s national security and international policy, the goal is to increase spending to 2.5% of the GDP.

The MOD is the single biggest spending customer in the UK. It’s committed to spending over £190 million on defence equipment and support services, including military fighting vehicles, education services, and facilities management over the next decade.

Central government departments, including the MOD, publish tender notices and contract opportunities that Supply2Gov picks up and adds to its contracts finder portal. SMEs and larger businesses can then use Supply2Gov’s procurement platform to find defence and security contracts that match their business’s products and services.

All it takes is a few minutes to register for free access to tender notices on our contracts finder and set up email alerts. In no time at all, defence and security suppliers will receive relevant defence tenders tailored to their company’s profile.

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MOD contracts and other supply chain opportunities

SMEs make up 99.9% of all businesses in the UK. The government is committed to increasing the number of SMEs operating in the public sector, and small businesses across the UK have been deemed vital in the defence supply chain.

Supply chain and other defence procurement opportunities can be found in the following areas:

  • Defence Digital (DD): Digital Information & Technology (D&IT) and cyber security
  • Defence Equipment and Support (DE&S): Vital equipment, including jets, warships, armoured vehicles, and field kitchens.
  • Defence Infrastructure Organisation (DIO): Planning, building, maintaining, and servicing infrastructure
  • Submarine Delivery Agency (SDA): Procurement, in-service support, and disposal of UK nuclear submarines.
  • Team Leidos: Storage and distribution of MOD materials.
  • Defence Science and Technology Laboratory (Dstl): Sensitive and specialist science and technology services.

MOD opportunities abound and there are plenty of options for all business enterprises, including innovative SMEs to enter the public procurement market with roles as prime suppliers and sub-contractors.

These contracts and tenders can be accessed through Supply2Gov’s portal, which enables suppliers to bid for MOD opportunities and receive relevant alerts and announcements.

If your business has the skills and expertise to support the UK’s Armed Forces, find contract opportunities with Supply2Gov.

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Security contracts and defence procurement tender opportunities

Defence purchasing authorities need more than just traditional military materials, such as ammunition and vehicles; their needs extend to a vast range of goods and services in sectors as diverse as ICT, research and development, manufacturing, and blue light services.

To help ensure that these needs are met, the MOD works collaboratively with strategic suppliers. The department awards contracts and collaborates with all kinds of suppliers, including incumbent suppliers, large defence contractors, and smaller businesses.

Initiatives to increase SME participation in the defence sector

Major government departments have developed an SME Action Plan, which aligns with the government’s goal to increase overall procurement spend with SMEs.

For instance, the Defence Science and Technology Laboratory has established the SME Searchlight Project to encourage SMEs to bid on central and local high- and low-value contracts. This initiative addresses some of the diverse security challenges faced by defence purchasing authorities.

Supply2Gov offers tender alert subscriptions for both national and local council contracts. You can find SME tenders and other contract opportunities relevant to the goods and services your business provides.

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Cyber Essentials certification for national defence and security

The Ministry of Defence manages a variety of sensitive projects and sensitive information that must be kept safe and secure. As a result, Cyber Essentials certification is mandatory for all MOD suppliers up and down the supply chain.

Cyber tech evolves constantly, so defence sector suppliers involved in the exchange of MOD Identifiable Information (MODII) must ensure their certification is always up to date with current cyber security compliance specifications.

Get certified today with Cyber Essentials Online and grab your share of the £54.2 billion defence market. 

Cyber Essentials Online

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Take out one of our country plans and you can add another country for 30% discount, add 2 more for 35%, add 3 for 40% or add 4 for 45%!

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Select Countries

Take out one of our country plans and you can add another country for 30% discount, add 2 more for 35%, add 3 for 40% or add 4 for 45%!

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