Babcock Land Defence Limited, acting as procurement agent for the Ministry of Defence, is preparing the Phoenix 3 Quoted Rental Framework for Transport Services. The planned Defence and Security Open Framework is estimated at £145 million excluding VAT and £174 million including VAT and will support the MOD's White Fleet operations across the UK.
Unlike some specialist defence procurements, the service categories are familiar commercial transport markets. The notice also states explicitly that the opportunity is open to SMEs across the UK.
If you provide coach, freight, taxi or related rental services, speak to Thornton & Lowe about your Phoenix 3 bid readiness.
What services are included?
The planned framework covers:
- coach with driver
- coach self-drive
- freight vehicles with driver
- freight vehicles self-drive
- taxi services
- chauffeur services
- medical taxi with driver
The framework will support short-term operational requirements, surge activity and temporary fleet replacement across the MOD White Fleet. The official preliminary market engagement notice provides the current engagement timetable and planned tender date.
Why the framework is relevant to SMEs
The notice specifically says the opportunity to bid for framework incumbency is open to SMEs across the UK. That makes Phoenix 3 materially different from defence opportunities where supplier eligibility is limited by highly specialist products, security classifications or narrow technical accreditations.
Suppliers will still need to demonstrate that they can meet the operational expectations of a defence customer. Nationwide availability, responsiveness, fleet reliability and commercial control are likely to be important even where the underlying service is conventional transport. Our transport tenders guide provides wider advice on public sector fleet and passenger transport bids.
Market engagement is the immediate priority
Babcock is holding a preliminary market engagement session to explain the requirement, proposed procurement strategy and key commercial and operational considerations. Suppliers are also being asked to complete a survey.
The engagement process gives prospective bidders a chance to understand how the MOD expects the quoted rental model to operate and to raise practical issues around availability, vehicle categories, geographic coverage, response times and pricing.
For transport operators, this can be particularly useful because the commercial implications of short-notice or surge demand are different from those of a fixed scheduled service.
What evidence should suppliers prepare?
Potential bidders should begin assembling evidence around:
- fleet availability and geographic coverage
- rapid response and short-notice mobilisation
- driver recruitment, vetting and competence where applicable
- vehicle maintenance and roadworthiness
- subcontractor and supply-chain management
- booking and dispatch systems
- customer service and escalation
- resilience during peaks or disruption
- pricing control and transparent charging
- safety, incident management and insurance
- sustainability and lower-emission fleet options where relevant
Where medical taxi services are offered, additional evidence around passenger needs, safeguarding and appropriate driver/service standards may also be important.
Key dates
- PME notice published: 4 September 2026
- Deadline to register for engagement session: 11 September 2026 at 5:00pm
- Engagement session: 14 September 2026 at 12:00pm
- Survey deadline: 16 September 2026 at 5:00pm
- Estimated tender publication: 19 October 2026
- Planned framework start: 1 March 2027
- Planned framework end: 4 March 2035
Use the PME to test your delivery model
The Phoenix 3 framework combines a substantial potential value with an unusually accessible SME message for a defence procurement. Suppliers should use the engagement stage to understand the operational model, then decide whether their fleet, coverage and response capability match the requirement.
Thornton & Lowe supports transport and defence-sector suppliers with tender strategy, writing and independent review. Contact our bid team if you want support preparing for Phoenix 3.
