The contract, for test and evaluation (T&E) and training support services, first signed in February 2003, is valued at £5.6bn over 25 years to 2028. Five yearly reviews and a 25-year extension option are included in the LTPA.
As part of the contract, Qinetiq manages 18 MoD-owned sites and is responsible for the provision of non-tasking services. As well as T&E and training support, this includes maintaining associated equipment, land and buildings.
‘We needed to maintain sovereign capabilities but also reduce overall costs and this ongoing partnering arrangement with Qinetiq allows us to achieve this,’ said MoD weapons commercial director, Rob Bellis.
‘Over the first five years we’ve not only retained access to the necessary facilities to ensure front line capability is maintained but we’ve done so at a much reduced cost. The LTPA has also enabled Qinetiq to invest in the facilities thereby providing MoD with an improved service for the agreed firm price.’
The MoD paid £964m for the first five-year period.