The upgraded Warrior is set to form the corner stone of British armoured division through till past 2040. Image: Lockheed Martin.

The UK Ministry of Defence (MOD) has announced it will negotiate a sole-source contract with Lockheed Martin to manufacture the Warrior Capability Sustainment Programme (CSP).

The information, unearthed via voluntary transparency notice, details plans to progress negotiations on the final contract to produce the Warrior CSP vehicles. The transparency note added that the MOD estimates the final contract will be worth around £800m.

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Warrior CSP aims to extend in-service life and improve on the capabilities of the Warrior tracked armoured vehicle, which was first brought into service in the 1980s. The CSP began in earnest in 2011 when Lockheed Martin won the competition to upgrade the vehicle and keep it in service until at least 2040.

In a statement, Lockheed Martin told Army Technology: “The MOD has published a Voluntary Transparency Notice stating their intent to enter into negotiations for a single-source contract with LMUK for WCSP Manufacture. A Voluntary Transparency Notice is used to announce a procurement decision that the authority intends to place a non-competitive contract under OJEU (Official Journal of the EU) procedures.

“Lockheed Martin is pleased to confirm that we continue to work closely with MOD to bring the essential WCSP capability into service. The MOD will publish a Contract Award Notice if negotiations are successful and a contract is awarded to LMUK for manufacture.”

The notice signifies that the UK intends to move forward with a non-competitive contract to procure the Warrior CSP that will extend the vehicle’s service life to 2040 and beyond. The notice does not guarantee a final contract will be signed; the MOD told Army Technology that a contract award notice would be released when negotiations are wrapped up.

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The MOD has spent £431.9m on the programme since 2011. In March, the MOD acknowledged that there had been “challenges to the Warrior upgrade programme” after it emerged the vehicle still do not have a planned in-service date and that commercial discussions were still ongoing despite over eight years of work.

As of January this year, Warrior CSP had completed 40 battlefield mission trials and fired over 3,000 rounds. At last year’s DSEI, Lockheed Martin said it expected to see final design acceptance in 2021.