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Tue, Mar 07, 2006

AgustaWestland Awarded 25 Year IMOS Contract

Will Support MoD's Fleet Of EH101s

AgustaWestland has been awarded the Integrated Merlin Operational Support (IMOS) contract, which will modify the company's logistics support arrangements for the UK Ministry of Defence’s (MoD’s) fleet of EH101 Merlin helicopters.

The partnering arrangement -- valued at £450 million for the first five years of a 25 year contract -- will provide support to the UK MoD’s fleet of EH101 Merlin Mk.1 and Mk.3 helicopters, operated by the Royal Navy and the Royal Air Force respectively.

"Until now MoD has operated separate support systems for the two different types of Merlin aircraft," said Adam Ingram, Minister for the Armed Forces. "This was the best approach when introducing both helicopters into service, but not the optimum way to manage support in the long-term.

The IMOS contract introduces payments for achieved flying hours and novel incentivization arrangements associated with delivering agreed levels of aircraft serviceability, operational fleet aircraft numbers and EH101 Merlin HM Mk.1 training system availability. Unique contract mechanisms will allow Industry to meet changing MoD requirements whilst retaining supply chain stability.

"This new contract will incentive industry to increase the availability of Merlin helicopters to the Front Line Commands, while saving the MoD and UK taxpayers around £Ibn in support costs over the next 25 years," said Ingram. "These arrangements will also sustain up to 1,200 jobs, many of which are at AgustaWestland in Evil."

"This contract is a further confirmation of the AgustaWestland’s commitment to provide efficiencies in and support to the UK helicopter fleet and to guarantee value for money to the UK government" said Giuseppe Orsi, AgustaWestland’s Chief Executive Officer.

Speaking after the announcement of the contract, AgustaWestland Military Programmes Managing Director Alan Johnston said "The program will also deliver major support cost savings while enhancing aircraft availability to the UK Ministry of Defence. Integrated Operational Support lies at the heart of Strategic Partnering with the UK MoD and our commitment to business transformation, which will deliver benefits to all parties."

Simultaneously with the award of the IMOS contract, AgustaWestland has awarded Lockheed Martin a contract to provide support to the Royal Navy’s EH101 Merlin HM Mk.1 mission system, which includes the Merlin Avionics Systems, the Merlin Avionic Test System and the Merlin Training System at RNAS Culdrose.

FMI: www.agustawestland.com, www.mod.uk

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