3rd Mar 2008 07:01
QinetiQ Group plc03 March 2008 QinetiQ and MOD sign £951m pricing agreement for test and evaluation andtraining support services over the next five years QinetiQ and the MOD have signed a firm price agreement confirming price, volumeand availability for the Long Term Partnering Agreement (LTPA) for Test andEvaluation (T&E) and Training Support services for the next five years throughto March 2013. The MOD will pay £951m across the second five year term (havingpaid £964m for the first five year period). "We needed to maintain sovereign capabilities but also reduce overall costs andthis ongoing partnering arrangement with QinetiQ allows us to achieve this,"stated MOD Weapons Commercial Director, Robert Bellis. "Over the first fiveyears we've not only retained access to the necessary facilities to ensure frontline capability is maintained but we've done so at a much reduced cost. The LTPAhas also enabled QinetiQ to invest in the facilities thereby providing MOD withan improved service for the agreed firm price." The LTPA contract was first signed in February 2003 and is still one of thelargest of its kind in the UK. Valued at £5.6bn over 25-years to 2028, the LTPAincludes five-yearly financial reviews and a 25 year extension option. Under this contract QinetiQ manages 18 core MOD owned sites and is responsiblefor the provision of Non Tasking Services. These include delivering a T&E andTraining Support capability, maintaining associated equipment, land andbuildings, plus delivering an investment programme to ensure that the capabilityis maintained and developed to meet MOD evolving needs. "The agreement of the firm price for the next period is recognition of QinetiQ'sability to both deliver value for money to the MOD and maintain many of thecritical facilities it needs", added Mary Carver, MD of QinetiQ's iX ManagedServices sector. Further Enquiries: QinetiQ Group plc Adrian Colman, Investor Relations Tel: +44-1252-395366 David Bishop, Media Relations Tel: +44-1252-394573 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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