 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
| . |  |
. |
UK Troops To Benefit From Munitions Partnering Deal
London, UK (SPX) Aug 25, 2008 A new partnering arrangement between the UK Ministry of Defence (MOD) and BAE Systems initially worth GBP2 billion -- with anticipated growth to more than GBP3 billion during the next 15 years -- will guarantee secure supplies of ammunition to UK troops while providing value for money for the taxpayer. The arrangement, known as Munitions Acquisition - the Supply Solution (MASS), is initially for a 15-year period and will supply approximately 80 per cent of the "general munitions" consumed by UK Armed Forces for training and front line operations, including small arms and medium-calibre ammunition, mortar bombs, tank ammunition and artillery shells. Some 1,700 jobs will be directly sustained by the deal, including 230 specialist munitions engineer posts. BAE Systems has pledged to invest more than 120 million pounds over the next five years to accelerate transformation of its munitions sites into modern, safer, highly automated, energy efficient, and flexible facilities. MASS was signed on 20 August between the MOD's Defence Equipment and Support organisation and BAE Systems Land Systems Munitions and will be implemented from October this year. MASS guarantees the MOD ceiling prices for ten years and consists of three elements: a capability charge to cover all fixed costs; payment for products priced at direct material and labour costs; and a further element to allow for flexibility, such as additional engineering tasks and "surge manufacture" to support operational deployments. The agreement includes opportunities to share savings between BAE Systems and MOD achieved through improved performance, innovation, overseas sales and expansion of scope. There are also penalty clauses for under-performance. BAE Systems Land Systems Managing Director David Allott said: "MASS is a far-sighted example of the UK Defence Industrial Strategy in action, focussing on through-life management to provide enduring military capability. It contracts for essential capability - retention of facilities and specialist skills - not just product. It also aligns objectives so that we, our customer and suppliers can work together to give the front line the vital supplies it needs while providing best value for money for the taxpayer. "MASS takes our Munitions business from a period of rationalisation and consolidation to a phase of modernisation and growth. The forward order book it gives allows us to take a long-term strategic view. We will work with the MOD to ensure the UK has the necessary skills and resources, not only to support existing usage patterns, but also to be able to increase output and design new types of ammunition when required." Community Email This Article Comment On This Article Share This Article With Planet Earth
Related Links BAE Systems The Military Industrial Complex at SpaceWar.com Learn about the Superpowers of the 21st Century at SpaceWar.com
Boeing considers exiting US Air Force tanker rebidding
Washington (AFP) Aug 22, 2008US aerospace giant Boeing said Friday it may exit the rebidding for a 35-billion-dollar contract to build US Air Force aerial refueling tankers unless allowed more time to rework its proposal. |
|
|
| The content herein, unless otherwise known to be public domain, are Copyright 1995-2007 - SpaceDaily.AFP and UPI Wire Stories are copyright Agence France-Presse and United Press International. ESA Portal Reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. Advertising does not imply endorsement,agreement or approval of any opinions, statements or information provided by SpaceDaily on any Web page published or hosted by SpaceDaily. Privacy Statement |
del.icio.us
Digg
Reddit
YahooMyWeb
Google
Facebook