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CONTRACT NEWS IN BRIEF

EUROPE

LAND

15 Feb 06. Turkey and the Netherlands have recently awarded Rheinmetall AG of Düsseldorf contracts for large-calibre ammunition worth some EUR 79m. In connection with the transfer to Turkey of 298 surplus Leopard 2 main battle tanks from the Bundeswehr inventory, Rheinmetall Defence received an order in December 2005 to supply Turkey with some 15,000 rounds of 120mm KE ammunition (the DM 63, including practice ammunition). The order is worth around EUR 46m. Delivery will take place during period July 2006 to June 2007. The DM 63 is a tungsten-based kinetic energy round whose new temperature-independent powder also makes it suitable for use in extreme climate zones without limitation.

SEA

14 Feb 06. U.K. DEFENCE PROCUREMENT Minister Lord Drayson named three companies
selected by the MoD to take part in the next stage of a project to
provide a new fleet of naval support vessels. AMEC, KBR and Raytheon Systems Ltd will now work with the MoD’s Military Afloat Reach and Sustainability (MARS)project team to further develop the project. In due course one of these companies will be selected as the Integrator for this project, and will work with the MOD to select the best delivery team to produce the ships. The key role of the Integrator will be to embed best project management and partnering
practice throughout the MOD/industry delivery team. The MARS vessels will have some military equipment and will be technically similar to specialist merchant ships. The priority for MARS is for the build of these ships to harness the efficiency of specialist commercial shipbuilding practice. UK yards and suppliers who can demonstrate these levels of efficiency will be given every opportunity to compete for shipbuilding work. The project is expected to provide for replacement for some classes of Royal Fleet Auxiliary vessels, including Rover and Leaf class tankers and Fort class support.

17 Feb 06. Fleet Support Limited (FSL) is to start discussions with the MOD and its major competitors on the formation of a Surface Ship Support Alliance for the Royal Navy. This innovative development was announced by the Secretary of State for Defence, John Reid, in Parliament on February 14. Discussions are to commence immediately and will involve the Ministry of Defence, FSL, Babcock Ship Support Limited (BSSL) in Rosyth and Devonport Management Limited (DML) in Plymouth. This approach will bring a jointly agreed stable and predictable workload for all three dockyards. This will enable the one-time competitors to share ‘best practice’ and provide the Royal Navy with a sustainable and ‘value for money’ UK ship maintenance and support service for its warships. The development of the Alliance will entail detailed and complex discussions and it is not expected to result in a contractual agreement until mid-2007. The first step towards the alliance begins immediately with discussions between the parties on a sensible, cost effective distribution of work for the next five warship upkeep projects that are due to start in the autumn.

AIR

17 Feb 06. A new contract that will transform the way in which logistics support
is provided to the Armed Forces’ largest helicopter has been awarded to the Boeing Company by the Ministry of Defence. The 34 year contract, worth almost £200m for the first five years, is expected to generate savings of some £170m over the life of the contract compared with current support arrangements. MoD’s current in-service fleet of 40 Chinook helicopters are used primarily for carrying troops and various other loads, both inside the helicopter or, in the case of equipment, underslung beneath the aircraft.

14 Feb 06. The MOD has signed a contract with National Air Traffic Services (En
Route) plc to provide an en route Air Traffic Control facility to the Ministry of Defence until 2021. The contract totals approximately £725m, will work to the benefit of those involved in both military and civilian operations

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