The deal, expected to be rubber-stamped by the client in the autumn, will cover design and maintenance work ranging from £250,000 to £20m.
It is understood that the three contractors have five years to make the 20% savings.
The move is part of a cost-cutting drive by BAe in the wake of its acquisition of Marconi's defence business in 1999, which reduced its profit.
Other areas targeted by the firm have included product buying, catering and security.