VT joint venture gets enhanced contract

PartTimePongo

War Hero
LONDON (SHARECAST) - Support services and shipbuilding company VT Group said its 50-50 joint venture with BAE Systems, Flagship Training, has enhanced its contract with the Royal Navy, worth a further £120m over the next five years.

Flagship has revised the details of its agreement with the Royal Navy by extending the contract by a further 21 months to 2013.

It will include designing and assisting with a range of training courses for the Royal Navy, which will involve transferring around 350 instructors and training support services staff directly to Flagship.

"This contract strengthens Flagship's role as the RN's training partner. With a considerable footprint in Army and RAF training, we are now the leader in UK military training and this is set to grow further through the UK Military Flying Training System," said chief executive Paul Lester
http://www.sharecast.com/cgi-bin/sharecast/story.cgi?story_id=1140216
 

the_matelot

War Hero
Moderator
Was this contract even opened to other bidders or will Flagship have its contract extended over and over again??
 
I suspect not on the basis this is an extension of an existing contract. Quite normal for service contract to be extended either in scope or time or even both. No it does not go on for ever, DPA always think they can screw some benefit out of re-competing, and both sides usually want to start with a new baseline.
 
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