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QinetiQ Group plcannounces a five-year, £1.54 billion extension to its Long Term Partnering Agreement (LTPA) with the UK’s Ministry of Defence (MOD) that will transform the provision of mission critical test and evaluation capabilities and services that help to enhance operational readiness of the UK and allied nations.
Alongside the contract amendment extending the LTPA to 2033, the Company is also recognising an incremental order of £166 million relating to current investments in test and evaluation.
Through the LTPA, QinetiQ delivers vital Test, Trials, Training and Evaluation (T3E) capabilities that ensure armed forces personnel are equipped and prepared for mission success. Over the next eight years, QinetiQ and the MOD will continue to invest to deliver T3E for next generation defence technologies such as uncrewed systems, hypersonics and directed energy weapons. Digitalisation will increase the pace at which new concepts and solutions are tested and then delivered into service. QinetiQ and the MOD have committed to improve access for agile and innovative small and medium sized enterprises (SMEs) to use the LTPA’s services.
Defence Secretary John Healey MP said: Rigorously tested equipment and the trialling of emerging technologies are key to ensuring our armed forces are using combat-ready capabilities on the frontline.
The contract will help keep Britain secure at home and strong abroad, as we drive forward innovation to bolster our national security and support skilled jobs across the UK.
With hundreds of British businesses supported by this investment through QinetiQ’s supply chain, we are demonstrating how defence is an engine for growth across the UK, and delivering on our Plan for Change.
Steve Wadey, Group Chief Executive Officer at QinetiQ said: "Through the LTPA, we play a vital role helping to protect and enhance the UK’s defence and security. The extension of our partnership with MOD enables us to continue investing to deliver the transformational change in test and evaluation that’s required to ensure our armed forces have operational advantage over disruptive technologies.
We’re seeing increased demand for our services from NATO countries and this LTPA extension positions the UK as a leading centre for T3E and facilitates the delivery of major equipment platforms as well as future upgrade programmes.
The extension to the LTPA will sustain more than 1,200 highly skilled jobs at 16 MOD sites across England, Scotland and Wales and support an increasingly diverse supply chain of more than 825 companies across the UK, 590 of which are SMEs.
Earlier this month, QinetiQ hosted Formidable Shield, a NATO joint strike exercise, at the MOD Hebrides range – one of 16 sovereign sites managed under the LTPA.
Since the signing of the original 25-year contract in 2003, QinetiQ, in partnership with MOD, has delivered T3E services which have supported crucial moments in UK defence. These include the first launch of a ballistic rocket into space from the UK, the UK’s first firing of a high-power laser directed energy weapon against aerial targets and Europe’s first successful demonstration of teaming a piloted aircraft with an autonomous air vehicle. The extension will support the delivery of a range of future defence capability including the Global Combat Air Programme (GCAP), Dreadnought nuclear submarines as well as drones.
