MOD Awards 38 Million VC10 Contract Extension To BAE SYSTEMS
14 Jun 2005
BAE Systems has been awarded a 38 million extension to the current VC10 maintenance contract, which will guarantee availability of the fleet to the Royal Air Force until the beginning of the next decade.
The new contract builds upon the success of the current JAVELIN (Joint Approach to VC10 Engineering and Logistics Integration) Red contract for which the team responsible, comprising BAE Systems, UK MoD and DARA St Athan, received the Smart Acquisition Award from the Ministry of Defence Procurement in 2004.
Under the original 207 million contract, signed in December 2003, BAE Systems took responsibility for providing spares-inclusive major maintenance of the VC10 fleet at DARA St Athan and the provision of engineering support and an agreed level of airframe components to support first and second line maintenance at RAF Brize Norton. This contract has delivered cost savings of 20 per cent.
The new agreement will transfer VC10 second line maintenance (Minor and Minor Star) from RAF Brize Norton to DARA St Athan, supported by service level agreements for supply and engineering support for on-aircraft maintenance. Performance is incentivised based upon aircraft availability. BAE Systems will take on additional responsibility for fleet management and providing VC10 maintenance policy advice in order to maximise efficiencies.
Known as Javelin Amber, it will deliver the MODs End-to-End Study output savings targets and increase the availability of the VC10 fleet to the front line for operational duties. The JAVELIN contract supports the aircraft through to 2011 and has an incentivisation mechanism that balances performance with gainshare arrangements, flowed down to all suppliers.
Group Captain Graham Evans leader of the Air Refuelling & Communications Fleets Integrated Project Team (ARC IPT) said: This contract incentivises BAE Systems to deliver availability of a key asset to the front line and will build upon the cost savings already achieved. It represents value for money to both the MOD and the tax-payer, whilst providing BAE Systems and its subcontractor DARA with an increased long-term order book.
Amanda Paterson, director of tanking, transport and reconnaissance at BAE Systems said: JAVELIN Amber will deliver improved availability at reduced cost. The new measures and incentives enhance a working partnership within which success is driven through mutual dependencies. Im delighted that we have been given the opportunity to build on the success of the first phase of the JAVELIN contract and have been entrusted with the responsibility for delivering such a vital programme.
The current fleet of VC10 aircraft operates out of RAF Brize Norton, Oxfordshire. The role of the VC10 fleet is to provide the RAF with an in-flight air refuelling capability and a cargo and passenger carrying service. The RAF brought its first VC10s into service in 1966 and is the only operator of VC10 aircraft in the world.
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, fighting vehicles, 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 over 13 billion through its wholly-owned and joint venture operations.
For further information, please contact:
Mike Sweeney, BAE Systems
Tel +44 (0) 7801 716452
mike.sweeney@baesystems.com
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