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January 6, 2022

Boeing Defence UK receives £460m logistics contract

The contract will sustain 675 jobs across the UK supply chain and deliver £54m in efficiency savings.

Boeing Defence UK has been awarded a £460m contract to support a logistics system that is critical for British military operations across the globe.

The new five-year logistics contract was negotiated by the UK Ministry of Defence’s (MoD) procurement arm, Defence Equipment and Support (DE&S).

It supports the realisation of a ‘more productive, active and globally deployed Armed Forces’ as highlighted in the 2021 integrated review and defence command paper.

The contract will be delivered three months in advance in support of the MoD’s ongoing modernising defence programme, and will provide assistance to UK Armed Forces from the warehouse to combat zones.

UK Defence Procurement Minister Jeremy Quin said: “This contract helps ensure our Armed Forces can rapidly deploy personnel and equipment for operations at home and abroad whenever required, maintaining their reputation as one of the finest fighting forces in the world.”

According to the MoD, inventory, transport, engineering, general ledger management, and other services are supported by the logistics information systems (LogIS).

The services aid in the successful global deployment of UK troops and equipment.

Under the contract, the company will ensure effective management of existing and future military equipment via access to advanced software applications.

Boeing will maintain and update the applications as per the changing defence requirements.

Defence Equipment and Support, Support Chain Information Systems head 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.”

The contract will sustain nearly 300 jobs at Boeing Defence UK’s Milton Keynes and Bristol sites.

A further 375 positions will also be sustained across the UK supply chain including IBM, Fujitsu, Sopra Steria and BAE Systems.

Over the five years, the award is expected to save £54m.

In November 2021, Boeing announced that it had secured a $246.48m contract to build six additional MH-47G Block II Chinooks for the US Army Special Operations Aviation Command (USASOAC).

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