Boeing Defence UK receives £460m logistics contract

Europe, News January 8, 2022 , by IRIA No Comments

The contract is expected to save £54 million over the five years and sustain 675 jobs

The UK’s Ministry of Defense has announced a new five-year £460 million (US$625m) logistics contract with Boeing to support a logistics system that is critical for British military operations.

The Logistics Information Systems (LogIS) support crucial services including inventory, transport, engineering, and general ledger management, which ensure the UK can successfully deploy military personnel and equipment globally.

“Securing this contract will provide the means to deliver and modernise Logistic Information Systems (LogIS). This, in turn, will enable our transformation programme by integrating with industry partners to deliver Support Advantage,” said director support transformation at UK Strategic Command, Air Vice Marshal Richard Hill said:

The five-year contract was negotiated by Defence Equipment and Support, the procurement arm of the UK Ministry of Defense. “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,” according to the head of support chain information systems at Defence Equipment and Support, Dave Penlington.

The contract is expected to save £54 million over the five years and sustain 675 jobs across the armed forces supply chain. Around 300 jobs will be sustained at Boeing Defence UK’s Milton Keynes and Bristol sites, and further 375 roles in the wider UK supply chain including IBM, Fujitsu, Sopra Steria, and BAE Systems.

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

Managing director of Boeing Defence UK, Anna Keeling said “For the last decade, we have been on a journey of transformation with the Ministry of Defence (MOD) to modernise and optimise the UK armed forces logistics and support chain. This new contract will see Boeing continue to ensure mission critical defence logistics systems are maintained and sustained so that our military personnel can operate effectively around the globe. The programme is supported by more than 300 highly-skilled Boeing Defence UK employees across the UK and a further 375 people through our UK-based suppliers. We look forward to our continued partnership with the MOD as it transitions to its future long-term Log IS requirements.”

Boeing has a workforce of 2,600 direct employees in the United Kingdom and spends £2 billion annually on the country’s supply. Since taking responsibility for the service in 2011, Boeing has helped modernize and transform a legacy IT estate for the UK’s Ministry of Defence.