The five-year contract worth £50m was awarded to BAE Systems to support the British Army’s armoured vehicle fleet, the UK Ministry of Defence (MoD) announced.
The contract will create 100 engineering jobs at Telford, Shropshire, and other UK sites, and will deliver design and operational services to light, medium and heavy armoured vehicles.
The new contract will also combine existing agreements with other suppliers to cut costs and save taxpayers’ money, according to the MoD.
“This contract helps ensure that we sustain a battle-winning armoured vehicle fleet, as well as representing an important investment in armoured vehicles capability within the UK defence supply chain that safeguards UK engineering jobs,” said Philip Dunne, Minister for Defence Equipment, Support and Technology.
“It is also essential that we deliver high-quality equipment and services at the best possible value for the taxpayer and are able to meet any future capability challenges,” Dunne added.
David Bond, managing director for BAE Systems Combat Vehicles, said: “BAE Systems is proud to support the armoured fighting capability of the British Army. As the design authority for over 85 per cent of the British Army’s in-service armoured vehicle fleet, this innovative long-term contract offers the company and the MoD a new partnering approach to vehicle support.”