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BAE Wins Tornado Support Contract (Aug. 4)

BAE Systems has been awarded a ten-year contract worth approximately £76m to support the Tornado Secondary Power System (SPS).

The contract, signed on 30 July, provides a full support service for Tornado GR4 and ADV hydraulic and electrical power generation systems for the next decade and is inclusive of spares, technical support and obsolescence.

The Secondary Power System allows the aircraft’s hydraulic and mechanical systems to be operated and tested without the need to run the engines. Under the contract, BAE Systems Customer Support & Solutions (CS&S) will take responsibility for the entire system, including managing the supply of assets, ensuring the availability of serviceable items to maintain the SPS at the Tornado operating bases.

The contract is a result of the partnering approach developed between the Tornado Joint Integrated Project Team (IPT) within the Defence Logistics Organisation (DLO), RAF Strike Command and BAE Systems CS&S team at Warton and Samlesbury.

BAE Systems are the prime contractor, with the service delivered in partnership with Rolls Royce, Goodrich, DARA (Defence Aviation Repair Agency), Panavia and EADS (European Aerospace Defence and Space Company).

This is the fourth contract to be awarded as a result of a joint DLO/CS&S support strategy for the Tornado fleet. The value of these contracts now exceeds £230m. The first contract, extending support for GR4 avionic items from five to ten years, was awarded in June 2001 to a value of approximately £45m. The second providing a fully innovative partnered approach to repairing structural items was worth just over £35 million. In June 2002, a £75m, eight year, ‘power by the hour’ contract for the F3 Foxhunter Radar System was awarded.

“This latest contract builds upon the substantial savings already achieved, contributing towards the DLO cost reduction targets while providing significant business growth for BAE Systems,” commented Air Commodore Nigel Bairsto the MOD’s Tornado joint IPT leader. “We’ve worked together to develop a solution that gives a benchmark service delivering significant cost savings and encourages continuous improvement through long-term incentivisation and gainshare arrangements. It’s another excellent example of the increasing partnership between the DLO and industry that is bringing benefits to both parties and delivering cost savings to the tax-payer”

BAE Systems’ Tornado joint IPT leader Martin Blaze said “CS&S’s record of delivering on support contracts has proved our ability to support our customer’s capability whilst providing a value-for-money solution.”

This latest stage brings to an end the pilot phase of a planned radical overhaul of Tornado support.

“Our aspiration and the focus of our work now is to work with industry to develop a small number of output-based availability contracts covering the aircraft and all its systems,” said Air Cdre. Bairsto.

Customer Solutions & Support employs over 14,800 people at 40 locations and provides through-life support and services across the air, sea and land sectors.

CS&S manages support and services programs worldwide including a broad range of contracts in Australia and the key Saudi Arabian Al Yamamah program. CS&S is also working closely with the UK Ministry of Defence to reduce the cost of support and training without compromising front-line efficiency.

BAE Systems has major operations across five continents and customers in some 130 countries. The company has more than 90,000 people and generates annual sales of approximately £12 billion through its wholly-owned and joint venture operations.

DLO Awards BAE £76m Tornado Support Contract