DLO Press Release
20 June 2005

MOD Awards £28 Million Partnering Contract to Raytheon Missile Systems

The Ministry of Defence (MOD) yesterday (16 June) signed a partnering contract with Raytheon Missile Systems for the in-service support of air launched munitions to 31 March 2018. The contract will be effective from 1 July 2005 and cover the existing Maverick, Paveway and AMRAAM 120B weapons, with potential to include further weapons as they enter the inventory.

The contract provides an availability support solution within a partnering environment that is underpinned by a robust joint management organisation. Savings have been achieved against a benchmark figure calculated against lean traditional support arrangements. A dynamic gainshare and incentivisation process is a key critical factor for further reductions in through life costs. Importantly, the new partnering relationship provides the opportunity for long-term business planning for both sides and demonstrates the Company’s commitment to long-term support of the weapon systems.

Group Captain Rob Ryder, Leader of the Air Launched Munitions Integrated Project Team, said:

“The contract represents a step forward for output focused support to the Front-line Command, whilst providing value-for-money to the MOD in the necessary business of keeping the munitions ready and available. I am particularly pleased with the commitment from the Company to pursue further cost savings, gainsharing the benefits as they occur during the life of the contract. The joint management organisation, underpinned by a code of behaviour, provides the mechanism to share risks and replaces the historical adversarial approach to contract management.”

For further information please contact: Bob Bates, DLO Secretariat (Strike) Tel: 01480 52451 x7801 Mobile: 0779 099 7285 Email: drm-commoff2@esair.dlo.mod.uk

Last Updated: 22 Jun 05