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By | Kable 16th December 2010 11:12

Boeing wins MoD logistics deal

Ministry wants to keep big bucks bang 'low-key'

The Ministry of Defence has awarded the contract for the Future Logistics Information Services (Flis) project to Boeing Defence UK.

Peter Luff, the defence minister, told Parliament on 3 December that the department has signed an 11-year, £800m contract with the company to deliver operationally essential logistics information.

He said: "The new arrangement will ensure the long-term delivery of operationally essential logistics information to both the MoD and industry, and the significant financial efficiencies will contribute to the government's strategic deficit reduction programme, without reducing operational capability."

The contract will replace 120 contracts with more than 50 companies, supported by an in-house MoD team. Boeing will take responsibility for the logistics information as the single delivery partner, although it will manage a number of sub-contractors, many of whom are currently prime suppliers to the department.

Chris Pennell, principal analyst at Kable, commented that the absence of a public announcement suggests the MoD wants to keep the contract award low-key.

"The price tag of £800m tends to blow a big hole in the 'We will not undertake big bang change programmes any more' rhetoric of the coalition," he said.

"Moving to a central system for managing the logistics of such a vast and diverse department such as the MoD is no small challenge for Boeing. Much will ride on its ability to deliver to budget and time if the MoD is to realise cash benefits from having a more joined-up view of its logistic operations."

This article was originally published at Kable.

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