BAE signs torpedoes deal

Aug 10 2009 By nebusiness

A 10-year £370m contract to maintain and develop torpedoes for the Royal Navy and Royal Air Force has been signed with BAE Systems, it emerged today.

The contract is expected to support about 120 skilled jobs at BAE’s Portsmouth site, while about a third of the total contract value will go to sub-contractors, sustaining other jobs around the UK.

The agreement covers support and maintenance for the heavyweight Spearfish torpedoes that arm Britain’s submarine fleet, as well as lightweight Sting Ray torpedoes which are carried on Royal Navy ships and helicopters and RAF Nimrod Maritime Patrol aircraft, the Ministry of Defence said.

BAE Systems has been the prime contractor and design authority for the UK torpedo industry for almost 40 years.

Today’s contract will consolidate what were 11 separate contracts into one, while a partnership approach with MoD’s Defence Equipment and Support is likely to result in efficiencies of at least £65m.

The deal is expected to provide the foundation for a proposed upgrade programme for the Spearfish torpedo.