Defence firm QinetiQ said Friday that alongside the UK Ministry of Defence (MOD), it has successfully completed the regular five-yearly review of the existing 25-year long term partnering agreement (LTPA) and together agreed terms for the provision of test and evaluation and training support services through to March 2018.
As such, the MOD will pay £998m across the third five-year term of the contract, which is valued at £5.6bn over the 25-year period.
The contract includes five-yearly financial reviews and a 25-year extension option.
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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.
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."
NR
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