19 November 2015: QinetiQ has been awarded work with the Ministry of Defence (MOD), worth a combined £153m over five years, for the delivery of technical services to fast jets and the A400M heavy-lift aircraft. The award introduces a framework for how the two organisations will work together, called the Strategic Enterprise, which will deliver considerable savings to the MOD through improved efficiency.
The Strategic Enterprise, developed jointly by QinetiQ and the MOD, is a formal agreement that enables multiple projects to be managed under a single, standardised delivery approach. This provides better value for money to the MOD by driving down management costs, optimising the use of resources, streamlining administrative processes, and enabling longer-term planning.
Philip Dunne, the Minister of State for Defence Procurement, said: “These contracts are important to maintain quality of service for the RAF’s key platforms and reflect a new partnership and way of working between the MOD and QinetiQ to sustain both capability and jobs.”
Air Marshal Simon Bollom, Chief of Materiel (Air) at DE&S, said: “This new approach transforms the provision of QinetiQ provided technical services for our aircraft. The Strategic Enterprise will deliver considerable savings and improve long-term planning through further improving our joint working. It will also support the retention of the UK skills base that will be required to deliver future programmes.”
Under the Strategic Enterprise, the MOD has awarded QinetiQ a £120m contract to provide technical advisory services to fighter jet programmes such as Typhoon and Tornado, and a £33m contract to support the UK’s contribution to A400M ATLAS, including the certification of aircraft into service, introducing new capability and safety evaluation.
Steve Wadey, QinetiQ CEO, said: “We are excited to deliver these contracts under this new approach, which will further our ability to provide consistent, high quality and timely technical services to MOD.
“We have worked hand-in-hand with the MOD to develop this new way of working, moving to output-based contracting that supports the customer over several years; at the heart of which is our ability to innovate to deliver more for less.”
Working practices adopted as part of the Strategic Enterprise include:
- Focusing on output-based contracting, in which the customer selects the outcome of a project from a standardised list – for example, an airworthiness certification – rather than agreeing a bespoke set of tasks for each new project
- Establishing a central management office, comprising employees from QinetiQ and the MOD’s procurement agency DE&S. This will improve communication and help project teams become more effective in defining requirements, planning and prioritising work, and tracking performance
- Introducing clearer commercial arrangements and greater predictability of future workloads to enable the MOD to better prioritise and work within clearly defined budgets
For further information, please contact
QinetiQ Press Office on Tel: +44 (0) 1252 39 3500