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QinetiQ secures £1.3bn LTPA amendment
QinetiQ secures £1.3bn LTPA amendment.
About this update from Qinetiq Group Plc
[{"type":"text","content":"\n \nRNS Number : 3213V QinetiQ Group plc 05 April 2019 \n\nQinetiQ secures £1.3bn LTPA amendment enabling military capability for the future\n5 April 2019\nQinetiQ has signed a ground-breaking agreement with the UK Ministry of Defence (MOD) to modernise 16 of the country's critical defence facilities, firmly positioning the UK as a world-leader in the generation and assurance of military capability. \n \nThis amendment to the Long Term Partnering Agreement (LTPA), a 25-year contract under which QinetiQ provides experimentation, test, evaluation and training support to the MOD, secures £1.3bn of revenue until 31 March 2028. \n \nAs global threats and adversaries become more sophisticated, UK armed forces require modern, advanced environments to create new military capabilities, test their effectiveness and train defence personnel to use them safely and successfully. This amendment creates highly efficient new ways of working, saving £85m of taxpayers' money, and enables QinetiQ and the MOD to invest £190m in modernising the infrastructure, equipment, and working practices across all 16 MOD-owned sites. \n \nThis contract amendment transforms QinetiQ's ability to enable the delivery of the MOD's future programmes, such as the Queen Elizabeth Class aircraft carrier, Dreadnought submarine and future combat aircraft. It will also drive international growth by attracting additional overseas customers. The investment projects include: \n\n\n\n· \n\n\nnoise and electromagnetic signature measurement to enhance the \"stealth\" performance of ships, submarines and aircraft, enabling them to better evade detection;\n\n\n\n\n· \n\n\nground-based evaluation of electronic warfare, communication and advanced weapon systems, to enable operational advantage; and\n\n\n\n\n· \n\n\na new digital test and evaluation 'backbone' to accelerate the processing of critical data and associated information, to enable simultaneous testing across multiple locations, essential for supporting new, complex defence capabilities.\n\n\n\n \nThe capital investment will be funded by QinetiQ and subsequently recovered from the MOD over the life of the contract using the same mechanism as the amendment signed in December 2016, ensuring appropriate rates of return for QinetiQ in line with its capital allocation policy. The level and...