No decision yet after cancelling Project Lily vessel

The Ministry of Defence is considering whether to launch a replacement competition for an uncrewed surface vessel capability after formally terminating procurement activity under Project Lily.

In a written parliamentary answer published on 11 February, Defence Minister Luke Pollard responded to a question from Conservative MP James Cartlidge on whether a new competition would be started to replace the programme.

Pollard said Project Lily had been intended to deliver an uncrewed surface vessel and an associated remote operations centre capability, but confirmed the programme had now been cancelled.

He stated: “Project Lily related to a proposed procurement to deliver an uncrewed surface vessel and associated remote operations centre capability.” Pollard added: “Project Lily was cancelled following a decision to consider alternative internal options to meet this requirement.”

He said the Ministry was still considering what approach to take next, including whether a replacement competition would be pursued. “The decision on whether to pursue a replacement competition or an alternative approach is under consideration in line with procurement rules.”

He added that if any future procurement was required, it would be announced through standard channels. “Should any future procurement be required, details of the opportunity will be published in the usual way via the Defence Sourcing Portal.”

The response follows earlier UK Defence Journal reporting that the MoD had formally terminated plans to procure an uncrewed surface vessel under Project Lily, ending a programme expected to deliver a contractor-supported autonomous maritime platform for global operations. A termination notice published by Defence Equipment and Support confirmed that the contract would not be signed and that the procurement was no longer going ahead, with the decision taken on 16 January 2026.

Project Lily had previously been trailed in a procurement pipeline notice issued in May 2025 under the Procurement Act 2023. That notice outlined plans to acquire a single commercial off-the-shelf uncrewed surface vessel, alongside a dedicated Remote Operations Centre, intended to support year-round operations in open ocean environments. The estimated value of the programme was £27.3 million including VAT, with a planned contract duration of four years from January 2026 to January 2030.

The proposed capability was intended to support military data-gathering tasks, with a particular focus on hydrographic and oceanographic activity. Early documentation suggested the vessel would initially operate under a Government Owned, Commercially Operated model for two years, before transitioning to Government Owned, Government Operated status with continued commercial support.

No explanation beyond “procurement no longer going ahead” was provided in the termination notice, and the MoD has not yet set out whether elements of the requirement may be revisited in revised form or absorbed into other programmes.