£460-million military logistics contract expected to deliver millions in efficiency savings

A logistics system critical to UK Armed Forces operations around the world will be supported under a new five-year, £460 million contract with Boeing Defence UK.

 

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.    

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.

Negotiated by DE&S, the £460-million contract is being delivered three months early and is expected to save £54 million over the five years.

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