Integrated Merlin Operational Support Contract

(Limited Text - Ministerial Extracts only)

Monday 17th January 2011 Written Statements

[The Parliamentary Under-Secretary of State for Defence (Peter Luff)]

I am pleased to announce the continuation of the 25-year Integrated Merlin Operational Support (IMOS) contract with the agreement of the second pricing period with Agusta Westland valued at approximately £570 million. The IMOS contract was awarded to Agusta Westland in 2006 to secure the future availability of the Merlin helicopter fleet to the front line while saving the Ministry of Defence and UK taxpayers around £12 million per year compared to previous contractual arrangements. At a time when Merlin helicopters are deployed in Afghanistan and on maritime operations worldwide, agreement to the second pricing period from 2011 to 2016 has ensured that cost-effective operational support will continue, at the level required by the armed forces. I am also pleased to use this opportunity to welcome the first flight of the Merlin Mk 2, being developed by Lockheed Martin. The aircraft is due to enter service in 2013 and achieve full operational capability during 2014.