Northwestern Shiprepairers and Shipbuilders of Birkenhead, and the A&P Group were named as the final two contenders. The RFA flotilla, the naval workhorse of the armed forces, comprises seventeen ships and totals 397,093 tonnes of shipping to keep the Royal Navy supplied with fuel, food, and ammunition while at sea on worldwide operations.

Minister for Defence Equipment and Support, Baroness Taylor said:

"The new support programme will increase the availability and effectiveness of these crucially important ships. It will also generate significant savings through closer collaboration with industry, and sustaining industrial expertise.

"I am delighted that, subject to successful negotiations, two British companies will provide this crucial support to the Royal Navy. This is in line with our aims under the Maritime Industrial Strategy."

Testing improved ways of supporting these vessels has already saved about £10m. The MOD expects to be in a position to place a contract next year, subject to successful negotiations.

The RFA fleet consists of:

• 6 Fleet and Support Tankers
• 4 Dry Cargo Fleet Replenishment Ships
• 4 Landing Ships Dock
• 1 Landing Ship (Logistic)
• 1 Aviation Training Ship
• 1 Forward Repair Ship.