Qinetiq in £951 million test and evaluation MoD contract

Published 4 March 2008

Good news for Qinetiq: the Ministry of Defense signed a £951 million contract with the company, part of a contract values at £5.6 billion over 25 years; company has already been paid £964 million for the 2003-9 period

The Ministry of Defense (MoD) has signed a £951 million contract with Qinetiq confirming volume and availability for a five-year long term partnering agreement (LTPA) through to March 2013. The contract, for test and evaluation (T&E) and training support services, first signed in February 2003, is valued at £5.6 billion over twenty-five years to 2028. Five yearly reviews and a twenty-five-year extension option are included in the LTPA. As part of the contract, Qinetiq manages eighteen 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.”

MoD paid £964 million for the first five-year period.