15th Dec 2005 14:45
Thursday 15 December, 2005 MINISTRY OF DEFENCE AND ROLLS-ROYCE SIGN ‚£185 MILLION SERVICE CONTRACT FOR RB199 ENGINES The Ministry of Defence (MoD) and Rolls-Royce have signed aninnovative service support contract for the RB199 engine, which powers theMoD's fleet of Tornado aircraft in service with the Royal Air Force.Under the ‚£185 million agreement, Rolls-Royce will undertake responsibility forthe full engine support and will guarantee an agreed level of availability.This new five-year RB199 Operational Contract for Engine Transformation (ROCET)follows on from a successful pilot scheme, under which Rolls-Royce guaranteedavailability on three modules of the RB199 engine.This demonstrated substantial cost savings due to a 34 per cent reduction inmodule repairs, despite the number of aircraft flying hours exceeding theoriginally planned level.Under the terms of the contract, Rolls-Royce is the prime contractor for allrepair and overhaul activity, encompassing full responsibility for sparesprovisioning, inventory management, technical and logistics support to thefirst line customer.Other contractors that will support the engine availability include GoodrichEngine Control Systems, Birmingham and Wood Group Accessories and ComponentsLtd, Dundee.Colin Green, President - Rolls-Royce Defence Aerospace, said: "This contractaward highlights the degree of confidence that the MoD has in Rolls-Royce toprovide innovative support arrangements that benefit both the customer and thecompany. We have proved that, through Mission Ready Management Solutions, wecan improve operating availability and reduce costs. It's a win - win solution."NOTE TO EDITORS 1. One of the key concepts that has been successfully demonstrated since service delivery began on October 1 2003 is the benefit of a common incentive to minimise the cost of RB199 support, through a contractual mechanism which enables all parties to share in the financial rewards. 2. This "win-win" arrangement allows industry to satisfy its requirement to provide a return to shareholders, whilst delivering cost reduction to the DLO, which contrasts with the traditional "win-lose" arrangement through which industry profits were only increasable by increases in DLO cost and vice versa. 3. Rolls-Royce will manage all repair and overhaul work, using its own facilities at Ansty, near Coventry, and Wood Group Accessories and Components Ltd. Rolls-Royce has also undertaken all spares provisioning. 4. In order to deliver sustained reduced cost of ownership, Rolls-Royce has demonstrated a significant improvement in repair turnaround times and reduced spares consumption. For further information please contact:Nick BrittonCommunications Manager - DefenceRolls-Royce plcTel: +44 (0) 117 979 5943Email: [email protected] BatesDLO Sec (Strike) Media EnquiriesTel: +44 (0) 1480 52451 x7801Fax: +44 (0) 1480 44 6337Email: [email protected] GROUP PLCRelated Shares:
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