The UK Ministry of Defence (MoD) and QinetiQ have agreed a third five-year term contract worth £998m to continue providing test, evaluation and training support services, as part of an existing 25-year long-term partnering agreement (LTPA).
The extension of the support services is an option of a contract originally signed in February 2003, which is to be reviewed regularly every five years.
Valued at £5.6bn, the 25-year LTPA contract runs through to 2028, while the UK MoD intends to save £700m over the course of the contract.
QinetiQ chief executive officer Leo Quinn said: "We are committed to continuing to invest in these capabilities over the next five-year period to provide this vital service to the MoD in support of the frontline."
Under the recent extension, QinetiQ will manage 17 key MoD sites and administer test and evaluation non-tasking services, training support capability, maintain associated equipment, land and buildings.
The company will also be responsible for an investment programme to ensure development and maintenance of the capability to meet the growing requirements of the UK MoD.
MoD DE&S director weapons Laurence Bryant added: "The LTPA provides this service to our armed forces, the MoD and equipment suppliers, and is crucial to maintaining our defence capability."
The recent third term contract is expected to provide services until March 2018.