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Press Notices

MoD rules out current PFI option for Armoured Vehicles Training

15/06/05

An alternative way forward to the current Private Finance Initiative (PFI) solution for the Armoured Vehicles Training Service (AVTS) is being sought, announced the Minister for Defence Procurement Lord Drayson today. The decision was announced after a detailed assessment of the Landmark Training Ltd  consortium's bid concluded that the PFI deal did not offer an acceptable value for money solution.

The MOD will now explore conventional procurement strategies to deliver the capability, although it does not rule out Public Private Partnership forming part of the overall future solution. The MOD confirmed that the quantity and quality of existing Armoured Vehicles training would be unaffected.

Although not continuing with this PFI, the MOD, supported by the PFU, will continue to use PFI where it can be shown to deliver better value for money as exemplified by the recent PFI deal with the Amey Lex Consortium to provide C vehicles for the Armed Forces.

Lord Drayson said:

"I realise that this will be disappointing for the bidders. However, robust decisions need to be taken and we will only proceed with such a long-term commitment of public money where we are confident of a successful, value for money outcome for our Armed Forces, and the taxpayer."

"Improvements to our Armoured Vehicles training will continue. This change in direction will allow us to examine other procurement options and take advantage of emerging technology and best practice as it develops in the commercial training areas."

Notes to editors

1. For further information contact Christian Cubitt in the MOD press office on 0207 218 2661.

2. The Landmark Training consortium, selected as Intended Preferred Bidder through

competition, consists of CAE(UK)PLC, Agusta Westland and Interserve.

3. AVTS encompassed 14 vehicle types including Challenger 2 tanks and Warrior Infantry Fighting Vehicles. It aimed to incorporate new vehicles, such as the Future Rapid Effects System, as they came into service. A revised procurement strategy is being prepared by the Defence Procurement Agency

4. The AVTS project is managed by the Joint and Battlefield Trainers, Simulations and Synthetic Environments (JBTSE) Integrated Project Team within the Defence Procurement Agency (DPA) at MoD Abbey Wood, led by Brigadier Alan Macklin.

Last Updated: 16 Jun 05