Wed, Oct 07, 2009
Contract Life Is Expected To Be 22 Years
AgustaWestland, has secured the
Apache Integrated Operational Support (IOS) contract by the UK
Ministry of Defence (MoD) to meet the Apache Attack Helicopter
Future Support Arrangements (FSA) requirement. The contract, valued
at $703 million for the initial period to March 2014, was announced
Tuesday by the Minister of State for Defence Equipment and Support,
Quentin Davies MP during a visit to Wattisham Airfield, the British
Army's main Apache AH Mk.1 operating base.
The Apache IOS contract will deliver greater aircraft
availability, while reducing through life costs by more than $79
million in the initial period and builds on the success of similar
IOS availability based contracts for the UK MoD's AW101 Merlin and
Sea King helicopter fleets. The contract is output-based, meaning
AgustaWestland is incentivized to improve the levels of operational
output while seeking continuous improvement to reduce through life
costs.
Minister of State for Defence Equipment and Support, Quentin
Davies said, "I am delighted to announce the award of this contract
to meet the Apache Attack Helicopter Future Support Arrangements
requirement. It provides a more efficient way of doing
business, representing excellent value for British taxpayers
(while) sustaining and improving today's level of service."
Graham Cole, Managing Director, AgustaWestland said at the
announcement "The Apache IOS contract is further evidence of our
continuing commitment to partnering with the Ministry of Defence to
deliver innovative industry leading support solutions in a cost
effective manner. The Apache is proving its worth every day on
operations in Afghanistan and we, along with our partners, are
committed to ensure they and the entire Apache force in the UK get
the absolute best possible support."
The Apache IOS contract has now begun, and will be fully
operational from 1st April 2010. The contract is expected to
continue for at least 22 years when the Apache is currently
scheduled to be taken out of service. At regular intervals there
will be price and value for money reviews to ensure performance
targets are being met. The contract represents another stage in the
helicopter plans set out in the MoD-AgustaWestland Strategic
Partnering Arrangement and strengthens the relationship between
industry and the MoD.
The contract will sustain over 500 industry jobs mainly at three
locations - Wattisham, where the Depth Support Unit and front line
squadrons are located; Middle Wallop, the Main Operating Base for
the Apache fleet assigned to the School of Army Aviation and at
AgustaWestland's Yeovil factory. A joint Apache IOS project office
has now been established at AgustaWestland's Yeovil facility
staffed by MoD and AgustaWestland personnel.
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