MOD Awards BAE Systems Ships Disposals Contract
27 Sep 2004
The Defence Logistics Organisation (DLO), the logistics unit of the UKs Ministry of Defence, has signed an enabling contract with BAE Systems which formalises the companys role as lead contractor for the disposal or sale of Royal Navy ships.
The contract is worth up to 7 million over an initial five years with options for the DLO to extend beyond this. BAE Systems CS&S Naval business will be responsible for the regeneration and delivery of ships to their new owner and will agreed firm prices with the DLO for each project.
The contract will operate within the terms of the Memorandum of Agreement that the MOD has had in place with UK maritime industry and will cover the disposal of vessels such as frigates, destroyers, patrol vessels and minehunters, but does not include the disposal of surplus nuclear submarines. It has wide-ranging support from the major players within the naval industry, including the Society of Maritime Industries and the British Naval Equipment Manufacturers Association.
Major General Malcolm Wood, Director General of Disposals and Sales at the Defence Logistics Organisation said, This contract builds on a relationship between the MOD and BAE Systems which has existed since December 1998. Our aim all along has been to provide better through-life support and lower costs to navies around the world.
Rory Fisher, MD of CS&S, Naval added, Clearly, this is an important step for the company in developing its ship reactivation business and strategy for managing the supplier base. I am confident we can deliver a real return for the MOD - we already have significant experience in this field by managing the regeneration and modernisation of two Type 22 frigates for the Romanian Navy.
The scope of each project could vary widely - from regenerating and modernising a ship for onward sale to towing a vessel from one port to another. In fulfilling its role as lead contractor, CS&S Naval will ensure all relevant companies within the naval industry are able to compete for work, and will be encouraging the use of on-line electronic procurement methods.
About BAE SYSTEMS
BAE Systems is an international company engaged in the development, delivery and support of advanced defence and aerospace systems in the air, on land, at sea and in space. The company designs, manufactures and supports military aircraft, surface ships, submarines, radar, avionics, communications, electronics and guided weapon systems. It is a pioneer in technology with a heritage stretching back hundreds of years. It is at the forefront of innovation, working to develop the next generation of intelligent defence systems.
BAE Systems has major operations across five continents and customers in some 130 countries. The company has more than 90,000 people and generates annual sales of approximately 12 billion through its wholly-owned and joint venture operations.
BAE Systems, innovating for a safer world.
About Customer Solutions & Support:
Customer Solutions & Support employs around 15,000 people at over 40 locations and provides through-life support and services across the air, sea and land sectors. It carries out upgrades, maintenance, repair and overhaul of military systems. CS&S supports customers' military capability in areas such as training; facilities management; spares and repairs; technical information services; manpower services; and supply chain and logistics management.
CS&S manages support and services programmes worldwide including a broad range of contracts in Australia and the key Saudi Arabian Al Yamamah programme. CS&S is also working closely with the UK Ministry of Defence to reduce the cost of support, upgrade and training - without compromising front-line capability.
For further information, please contact:
Mike Sweeney, BAE Systems
Tel: +44 (0) 1772 856034
Mobile: +44 (0) 7801 716452
Kate Watcham, BAE Systems
Tel: +44 (0) 1252 383502
Mobile: +44 (0) 7793 420731
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