QinetiQ and MOD sign £998m five-year pricing agreement for test, evaluation and training support services

01 Feb 2013

01 February 2013 - QinetiQ and the UK Ministry of Defence (MOD) have successfully completed the regular five-yearly review of the existing Long Term Partnering Agreement (LTPA) and agreed terms for the provision of test and evaluation (T&E) and training support services through to March 2018. QinetiQ is ten years through the 25-year LTPA contract which is reviewed every five years. As a result of cost savings and some minor changes in scope, MOD will pay £998m across the third five-year term of this contract.

Under the LTPA, QinetiQ manages 17 core MOD-owned sites and is responsible for providing T&E and training support services; maintaining associated equipment, land and buildings; as well as delivering an investment programme to ensure that the capability is maintained and developed to meet the MOD’s evolving needs.

First signed in February 2003, the LTPA runs until 2028 and is valued at £5.6bn over 25 years. The contract includes five-yearly financial reviews and a 25-year extension option. Since the LTPA commenced, QinetiQ has more than doubled output under the contract (measured by milestones delivered) which is also on track to achieve £700m savings for the MOD over its lifetime.

Commenting on the signing, Laurence Bryant, DE&S Director Weapons, MOD said: “Test and evaluation is essential for the effective management and mitigation of the risk in our acquisition programmes and for the enduring support of our front line capability. The LTPA provides this service to our Armed Forces, the MOD and equipment suppliers, and is crucial to maintaining our defence capability. I look forward to continuing to work together in driving value for money and innovation through this contract.”

Leo Quinn, QinetiQ Chief Executive Officer, said: “This agreement is recognition of the expertise of our people and their ability to consistently deliver support to Britain’s Armed Forces. We are committed to continuing to invest in these capabilities over the next five-year period to provide this vital service to the MOD in support of the front line.”

A FTSE250 company, QinetiQ uses its domain knowledge to provide technical support and know-how to customers in the global aerospace, defence and security markets. QinetiQ's unique position enables it to be a trusted partner to government organisations, predominantly in the UK and the US, including defence departments, intelligence services and security agencies.

For further information please contact:

Media relations:                QinetiQ press office               +44 (0) 1252 393500
                                              Liz Morley, Maitland              +44 (0) 7798 683108

Investor relations:            David Bishop, QinetiQ            +44 (0) 7920 108675

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QinetiQ and MOD sign £998m five-year pricing agreement for test, evaluation and training support services