DSG SECURES FIRST MAJOR MOD CONTRACT
22 Jul 08. Launched on 1 April 2008 following the merger of ABRO and DARA business units, the Defence Support Group (DSG) recently secured its first major MoD contract. Awarded for the maintenance, repair and overhaul of military vehicles and land equipments, the contract runs for five years through to 31 March 2013 and is valued at around £875M. The work will see DSG carry out scheduled maintenance and base overhaul of vehicles and equipments through programme load activities. It will also cover unscheduled maintenance through the Land, Strike and Fleet district load activities.
This key contract will provide the basis of DSG’s land activities and support the majority of work over the next five years. This will involve working closely with IPT customers in MoD’s Land Equipment directorate as well as continuing to develop partnering links with industry in support of major maintenance, repair, overhaul and upgrade programmes for the UK Armed Forces. The contract allows for an initial, provisional pricing regime, which will be validated following work now taking place by the Joint Price Validation Pricing Group. The Group comprises officials from Director General Land Equipment’s (DGLE) area and DSG with the aim of reporting results by September 2008. It is anticipated that these results will also help establish an agreed pricing regime for the remaining period of the contract through to 2013.
DSG’s Chief Executive, Archie Hughes comments, “With our focus very firmly on the support of the Armed Forces, our role as MoD’s in-house provider of maintenance, repair, overhaul and upgrade services for key land and air systems and equipment is one that must continue to deliver best value for defence. We have a proud heritage with all the right skills and expertise at our many locations throughout the UK. But we must look for continuous improvements and innovative support solutions that will drive down costs and improve availability of critical equipment for our Armed Forces.”
DSG’s Commercial Director, Alan Lewis adds, “We have an unique opportunity now in DSG to demonstrate the value we can bring to MoD and our industry partners. Securing this important contract is just the first step on our road, which allows us to help support existing and new land and air systems and equipment. We are under no illusions that work will be gifted to us. We must demonstrate and deliver benefits to our customers that vindicate the decisions made to create DSG.”
DGLE’s Commercial Director, Brian Dewdney concludes,” The contract incentivises both parties to deliver solutions that represent best overall economic advantage for Defence, with a clear focus on flexibility and responsiveness to meet the needs of the end user. A key enabler to success is our continuing engagement with all our Industry suppliers so that, working together, we develop the most effective solution.”