QinetiQ Group plc QinetiQ secures £1bn LTPA contract amendment (7651Q)
December 02 2016 - 2:01AM
UK Regulatory
TIDMQQ.
RNS Number : 7651Q
QinetiQ Group plc
02 December 2016
QinetiQ secures GBP1bn contract amendment to deliver modern air
ranges and test aircrew training, enabling military capability for
the future
2 December 2016 - QinetiQ announced this morning that it has
been awarded a GBP1bn contract amendment to the Long Term
Partnering Agreement (LTPA) from the UK Ministry of Defence (MOD),
under which Test & Evaluation (T&E) services have been
delivered since 2003, committing approximately half the core LTPA
revenues until 31 March 2028. Under the amendment QinetiQ will
modernise and operate the air ranges at MOD Aberporth and MOD
Hebrides, and test aircrew training through the Empire Test Pilots'
School at MOD Boscombe Down. Importantly, efficiencies delivered
through this programme enable future MOD and QinetiQ investment in
developing further world-class T&E.
In today's world of rapidly evolving and sophisticated threats
it is crucial that the UK Armed Forces develop and deploy advanced
military capability quickly and flexibly to protect national
interests. Modernising the delivery of T&E is a critical
enabler to the success of this outcome. Working alongside the MOD,
QinetiQ has established this programme to ensure that the UK is at
the forefront of world-class competitive air ranges and test
aircrew training, relevant to the current and future needs of the
UK Armed Forces as well as government and industry customers around
the world.
The MOD and QinetiQ have agreed to invest approximately GBP180m
in modernising facilities, equipment and developing new ways of
working as part of QinetiQ's wider strategy to lead and modernise
T&E across the lifecycle, from experimentation and research of
new capabilities through to training and rehearsal of current
capabilities. This new approach will be delivered by working in
collaboration across the defence enterprise, including Small Medium
Enterprises (SMEs), to foster innovation and develop future skills,
with the QinetiQ investment being recovered from the MOD over the
life of the contract.
Minister for Defence Procurement, Harriett Baldwin said: "This
new deal will ensure our Armed Forces get world-class training and
testing facilities and services while making substantial
efficiencies, ensuring excellent value for money for the
taxpayer.
"Backed by a rising Defence budget and our GBP178 billion
equipment plan, all three sites will continue to have a major role
in supporting our defence capability. This investment will help
secure their futures for the longer term."
Steve Wadey, QinetiQ CEO, said: "This contract amendment
represents a huge step forward in the modernisation of UK Defence
T&E to enable the safety and operational advantage of our Armed
Forces in the 21(st) century. Our investment demonstrates that we
are committed to transforming our ways of working with both UK MOD
and wider industry, to deliver air ranges and test aircrew training
that are relevant and competitive for the UK Armed Forces as well
as government and industry customers around the world. I am
particularly excited that this programme also enables us to plan
and begin implementation of further enhancements to the UK's
T&E capabilities to address current and emerging threats
through the next decade and beyond."
There will be a conference call for QinetiQ analysts and
investors at 0745 hours UK time on 2 December 2016.
Dial in details: +44 (0) 20 3003 2666 Password: QinetiQ.
This announcement contains inside information and the person
responsible for making this announcement is Jon Messent, Company
Secretary.
ENDS
Notes for Editors:
The Long Term Partnering Agreement (LTPA) is a 25 year contract
between the MOD and QinetiQ. The LTPA is valued at around GBP5.6
billion and came into effect in April 2003. The company operates 17
core MOD sites and ranges delivering: test, evaluation, training
support, and a variety of specialised services, across the air,
land and sea domains. Its outputs enable much of UK Defence's
Capability development, providing services to about 70% of the
Defence Major Projects Portfolio.
To ensure the UK has the capabilities required for
experimentation, demonstration and rehearsal of military
capability, QinetiQ will invest approximately GBP95m in modern
tracking equipment, instrumentation and range infrastructure at the
MOD Aberporth and MOD Hebrides ranges. These changes will help
reduce the overall operating costs of the ranges ensuring they
remain competitive and have the capabilities required to support
defence exports and attract international customers, building on
the success of the At Sea Demonstration 2015* and Unmanned
Warrior** 2016.
At MOD Boscombe Down, QinetiQ will work with partners in the
RAF's Air Warfare Centre to introduce a new test pilot syllabus
from 2019 that will meet future military test pilot training needs
while also offering a new commercial test pilot qualification,
opening up new opportunities for a wider range of students to
attend. QinetiQ will invest approximately GBP85m to replace the
oldest aircraft in the current flying fleet with new, systems-rich
aircraft that will deliver the new syllabus while costing less to
maintain, reducing the overall running costs of the school.
*At Sea Demonstration
https://www.youtube.com/watch?v=wzYhOlrzlS8
**Unmanned Warrior
https://www.youtube.com/watch?v=yEbhn9UYQCA
About QinetiQ:
QinetiQ is a leading science and engineering company operating
primarily in the defence, security and aerospace markets. We work
in partnership with our customers to solve real world problems
through innovative solutions delivering operational and competitive
advantage.
For further information please contact:
Media relations: QinetiQ press office +44 (0) 1252 393500
Chris Barrie, Citigate
Dewe Rogerson +44 (0) 7968 727289
Investor relations: David Bishop, QinetiQ +44 (0) 7920 108675
This information is provided by RNS
The company news service from the London Stock Exchange
END
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