£293 Million Deal for Apache Fleet
(Source: UK Ministry of Defence; issued Jan. 17, 2019)
Although it lost the contract to supply a new generation of Apaches to the British Army, which will but them directly from Boeing, Leonardo is generating substantial revenue to support British military helicopters, now to include the Apache Mk. 1. (MoD photo)
The MOD has awarded a five-year, multi-million-pound deal to Leonardo Helicopters (UK) for the support of the existing fleet of 50 Apache attack helicopters.
Defence Minister Stuart Andrew announced the £293 million contract with Leonardo Helicopters during a visit to the company’s site in Yeovil, where some of the vital work on the aircraft will take place. The Apache AH MK1 Integrated Operational Support (IOS) contract will maintain the fleet until it’s out of service date in March 2024.
The Apache MK1 is being incrementally replaced by the latest Apache AH-64E aircraft that will begin entering service with the British Army in 2022. The new AH-64E model will have improved sensors and avionics as well as greater performance that will enable the Army to sustain its battle-winning capabilities in future operations.
Defence Minister Stuart Andrew said: “The Apache has provided years of crucial battlefield support to UK and coalition troops in operations in Libya and Afghanistan. This multi-million-pound contract will ensure our Armed Forces continue to benefit from this vital capability as we integrate the latest Apache model into service in 2022.”
The IOS contract secured by Defence Equipment and Support, the MOD’s procurement agency, includes deep maintenance, repair and overhaul of the MK1 aircraft as well as the provision of technical and spares support. The contract has been awarded in three tranches, to maintain value for money, with this latest investment covering the final five years of the fleet in service.
This contract reaffirms the MOD’s committed investment in Leonardo’s Yeovil site. Last May, the MOD announced the delivery of the first Commando Merlin Mk4 helicopters designed for Royal Marine aircraft carrier operations. This saw the fruition of a £388 million contract supporting 175 skilled jobs in Yeovil and a further 500 across the UK supply chain. The MOD also provides Leonardo with the £271 million Wildcat support and training contract securing 500 jobs in Yeovil.
The South West benefits from MOD expenditure of £920 per person each year and a huge investment in local industry and commerce of £5.1 billion. Defence spending in the region supports one in every 60 jobs – the highest proportion of jobs supported by MOD expenditure in the UK, totalling 33,500 jobs.
Director Helicopters at Defence Equipment and Support, the MOD’s procurement agency, Graham Russell said: “This latest multi-million-pound investment in the existing Apache fleet not only demonstrates our positive collaboration with industry in achieving value for money, but also ensures that these battle-proven helicopters remain in-service and readily available for the British Army until their out of service date.”
Leonardo Awarded £293 Million Apache Integrated Operational Support Contract by the UK MoD
(Source: Leonardo; issued Jan. 17, 2019)
Leonardo is pleased to announce it has been awarded a contract by the UK Ministry of Defence to provide the Apache AH Mk.1 Attack Helicopter fleet with comprehensive support and maintenance services.
The Apache Integrated Operational Support (IOS) contract is valued at approximately £293 million (approximately €325 million) and will continue to support the Apache AH Mk.1 Attack Helicopter fleet from 1st April 2019 until the aircraft goes out of service in 2024.
During a visit to Leonardo Helicopters’ facility in Yeovil today, Defence Minister Stuart Andrew said “The Apache has provided years of crucial battlefield support to UK and coalition troops in operations in Libya and Afghanistan. This multi-million-pound contract will ensure our Armed Forces continue to benefit from this vital capability as we integrate the latest Apache model into service in 2022.”
Geoff Munday, Leonardo Helicopters’ Managing Director in the UK, said: “We are pleased that we have been awarded the contract to support the Apache AH Mk.1 fleet up to the planned out of service date and that the Minister has taken the time to visit us here in Yeovil to see first-hand the unique and exceptional capabilities we have here in the UK.”
Under the contract Apache IOS prime contractor Leonardo, through the involvement of its Helicopter and Electronics divisions, will continue to be supported by its industrial partners Boeing, Lockheed Martin and Longbow International to deliver complete spares provisioning, engineering, depth maintenance, repair & overhaul and technical support services for the UK MoD’s fleet of Apache AH Mk.1 helicopters.
At Wattisham Airfield, the British Army’s main Apache AH Mk.1 operating base, Leonardo will continue to manage the Depth Support Unit and the associated workshops, ensuring the throughput of the facility matches the operational requirements of the Army Air Corps.
At Army Aviation Centre Middle Wallop, Leonardo will continue to be responsible for the provision of Apache aircraft on the flight line at the School of Army Aviation, delivering the required number of flight hours to match the Army’s training requirements.
The Apache IOS programme office, manned by industry and Ministry of Defence staff, located at Leonardo’s Yeovil facility, will continue to manage the IOS contract. The Apache IOS contract will deliver the required levels of aircraft availability whilst reducing through life costs.
Leonardo also provides support and training services for the UK MoD’s AW159 Wildcat helicopter fleet under the Wildcat Integrated Support and Training (WIST) contract and for the AW101 Merlins under the Integrated Merlin Operational Support (IMOS) contract.