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CONTRACT NEWS IN BRIEF

EUROPE

LAND

Apr 06. One of the biggest deals under the private finance initiative – a £12bn, 35-year contract to transform army accommodation at Aldershot and across Salisbury Plain – was signed yesterday by the Aspire consortium. More than six years after the deal was first mooted, the consortium – made up of Carillion, the construction and services company, KBR, the engineering and construction group, and HSBC, the banking group – signed a contract that comes second only to the London Underground PFI in size, although that involves two contracts. Carillion said the deal involved accommodation for 11,000 soldiers, providing en-suite double bedrooms on 200 construction sites that would see 365 new buildings, 400 older ones demolished and the management of 1,500 others.
The services element of the contract, which is worth many times the £1.2bn construction cost, involves 50,000 eggs a day and 20,000 clean sheets a week, for example. Office accommodation and leisure facilities for 18,000 military and civilian staff are part of the deal. Carillion, making up half of the consortium, with a 45 per cent stake held by KBR and 5 per cent by HSBC, will also be the constructor and service provider. It said about £9.5bn would go through its books over the life of the deal. The project has been bond financed, with the bonds insured by Ambac and MBIA. The Ministry of Defence sees the refurbishment pro-ject as important to army recruitment and retention, with construction taking place to 2016 and the service contract running to 2040. (Source: FT)

AIR

5 Apr 06 Mass Consultants Ltd (MASS) announces the award of the contract for supply of the Secure Communications in Aircraft (SCA) for the RAF’s primary ISTAR asset, the Nimrod R1. This prestigious programme, valued at £9m, involves the development, integration and support of a greatly improved Communications and Radio Management capability which will continue to place the aircraft in the forefront of UK operations.

05 Apr 06. Wind River Systems, Inc. announced that Indras Sistemas, Spain’s leading information technology and defense systems company, has chosen Wind River Platform for Safety Critical to serve as the foundation of an identification system for the Airbus A400M military transport aircraft. Wind River’s device software platform for safety critical applications delivers a certifiable commercial-off-the-shelf (COTS) solution that enables aerospace and defense (A&D) companies like Indras Sistemas to improve productivity and project delivery by eliminating the need to create and certify an OS or development suite for each new project.

27 Mar 06. AERO Vodochody A.S. (AERO) signed two new military contracts with the Czech Ministry of Defence (MoD) on February 28, 2006. Contract on storage of extra 47 L-159 aircraft and related works. Contract on spare parts delivery for the 24 L-159A aircraft fleet. The overall value of both contracts will not be with respect to trade secret published.

USA

LAND

06 Apr 06. The Missile Defense Agency is awarding the Raytheon Co., of Woburn, Mass., a cost-plus-award-fee letter contract. This contract is to upgrade the early warning radar at Thule Air Base, Greenland. The not-to-exceed award value for this effort is $114,073,000. The period of performance is from April 2006 to September 2010. The principal place of performance will be at the Raytheon Co. in Woburn, Mass. Work will also be performed at Thule Air Base, Greenland. Contract funds will not expire at the end of the current fiscal year. The Missile Defense Agency is the contracting activity (HQ0006-06-C-0012).

06 Apr 06. BAE Systems received a $126.3m Option from the U.S. Army to upgrade up to 500 M113 Family of Vehicles (FOVs) to the latest A3 configuration. The option is added to BAE Systems’ current contract to produce 356 upgraded vehicles and increases that potential total by an additional 73 M577A3 Command Post Carriers, 66 M1064A3 Mortar Carriers and 361

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