£460 million logistics contract to sustain more than 600 UK jobs
A logistics system critical to UK Armed Forces operations worldwide will be supported under a new five-year, £460 million contract with Boeing Defence UK.
- New five-year contract to support UK Armed Forces from the warehouse to the front line
- 675 jobs sustained across UK supply chain
- Contract expected to deliver £54m in efficiency savings
The contract supports implementation of the Integrated Review and Defence Command Paper, published last year, which placed an emphasis on more productive, active and globally deployed Armed Forces.
Logistics Information Systems (LogIS) support vital services including inventory, transport, engineering and general ledger management, ensuring the UK can successfully deploy military personnel and equipment globally.
Supporting the Ministry of Defence’s ongoing Modernising Defence Programme, this new contract will ensure all single services have access to a single technology-enabled system to support essential inventory services, covering everything from washers and bolts to replacement parts for nuclear missiles.
Around 300 jobs will be sustained at Boeing Defence UK’s Milton Keynes and Bristol sites, as well as a further 375 roles in the wider UK supply chain including IBM, Fujitsu, Sopra Steria and BAE Systems.
Minister for Defence Procurement, Jeremy Quin said:
This contract helps ensure our Armed Forces can rapidly deploy personnel and equipment on operations at home and abroad whenever required, maintaining their reputation as one of the finest fighting forces in the world.
Safeguarding the UK’s ability to provide critical defence, security and resilience, the contract enables the management of current and future equipment through ongoing access to cutting-edge software applications that are maintained and updated in line with the changing needs of Defence.
Head of Support Chain Information Systems at Defence Equipment & Support, Dave Penlington said:
Defence cannot mount or sustain operations without logistics information. This crucial capability will make our Armed Forces more agile and better placed to support future cutting-edge equipment.
I am delighted that the team’s hard work alongside industry has ensured the UK Armed Forces have the tools they need to do their jobs effectively.
Director Support Transformation at UK Strategic Command, Air Vice Marshal Richard Hill said:
Securing this contract will provide the means to deliver and modernise Logistic Information Systems (LogIS). This in turn will enable our transformation programme by integrating with industry partners to deliver Support Advantage.
Negotiated by Defence Equipment and Support (DE&S), the procurement arm of the UK Ministry of Defence, the £460 million contract is being delivered three months early and is expected to save £54 million over the five years.