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.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
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
-
Bitcoin price one of the most-asked questions on Alexa - here's how to buy the cryptocurrencyAccording to figures from Amazon, which cover September 2023 to November 2024, pop star Taylor Swift and Bitcoin were named among the most popular Alexa queries of 2024
-
Investing for children this Christmas – five ideasIt might not come with a shiny ribbon, but an investment fund could be the gift that keeps on giving. We share five ideas if you are investing for children this Christmas.
