The US Navy’s Program Executive Office, Unmanned and Small Combatants (PEO USC), has awarded a…

Rolls-Royce signs landmark Unity contract with UK Ministry of Defence
London-based Rolls-Royce has signed the eight-year, £9 billion ($18 billion) Unity contract which brings together all elements of research and technology, design, manufacture and in-service support of the nuclear reactors that power the Royal Navy’s fleet of submarines, including the SSN-AUKUS boats which the UK and Australian will acquire over the next decade.
This contract between Rolls-Royce Submarines Ltd and the UK MoD, forms a single, capability portfolio and is the biggest UK Ministry of Defence (MoD) contract in its history, the company says.
Rolls-Royce says Unity will enable improved focus on simplification and efficiency and better outcomes for the UK Royal Navy. It represents a significant undertaking and investment by the UK government and industry, the company adds.
“The Unity contract … confirms our commitment to the Royal Navy and the Defence Nuclear Enterprise,” says Steve Carlier, President of Rolls-Royce Submarines. “This long-term contract enables us to invest in the right skills, equipment, and facilities to play our part in protecting UK interests at home and overseas.”
Although the core technology remains American, Rolls-Royce designs, builds and maintains all of the nuclear reactors that power the Royal Navy’s submarines, including the Anglo-Australian SSN-AUKUS nuclear-powered submarine fleet and the UK’s Dreadnought-class ballistic missile boats. This contract will provide full support of the in-service UK Royal Navy submarine fleet throughout the period and includes continued support of the build and commission of the Dreadnoughts and the beginning of the SSN-AUKUS boats, the company says.
The Royal Australian Navy plans to acquire at least five SSN-AUKUS nuclear-powered submarines during the 2030s and ‘40s. They will be the same as the British ones and will be powered by nuclear reactors made by Rolls-Royce in the UK likely under a follow-on to the Unity contract. Last year the Australian government announced it would invest $4.6 billion helping double the size of Rolls-Royce’s Derby facility where the reactors are made.
However, a large proportion of each boat will be built in Australia and all SSN-AUKUS boats will embody US technology, including future developments of the BYG-1 Combat Management System and the US-made Mk48 torpedo.
In line with the UK’s upcoming defence industrial strategy, says John Healey the British Defence Secretary, this deal with Rolls Royce shows, “Defence can be an engine for growth, while also driving better value for taxpayer money.
“National security is a foundation of our government’s plan for change, and this is a clear demonstration of our commitment to the UK’s nuclear deterrent, which is our ultimate insurance policy in a more dangerous world,” he adds.
The contract is the first of its kind awarded by the UK MoD and potentially creates a new way of doing business between Government and industry, says Rolls-Royce. With a long-term commitment across Rolls-Royce’s Submarine programs, Unity draws together current and upcoming work into one portfolio. It is designed to incentivise an even more collaborative working relationship between Rolls-Royce and the UK MoD.
“Bringing together existing commercial arrangements, it is a clear signal of our commitment to deliver greater effectiveness, efficiency, and agility to meet the needs of the Defence Nuclear Enterprise and support the Royal Navy’s submarines now and into the future,” says Sir Chris Gardner, CEO of the UK Submarine Delivery Agency (SDA).
“It will also enable a critical pipeline of home-grown nuclear skills and provides Rolls-Royce with the longer-term contractual security to plan and develop the existing and future workforce.”