Operational Logistics Information Capability (Improvements)

Friday 3rd December 2010 Written Statements

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

I am pleased to announce that the Ministry of Defence (MOD) has signed an 11-year contract with Boeing Defence UK (BDUK) for the future delivery of operationally essential logistics information across defence.

The new contractual arrangement has been developed under the umbrella of the Future Logistics Information Services (FLIS) project, and represents a step-change improvement to the quality of logistics information available to the armed forces. Logistic support is vital across the full range of military tasks, including those in support of military operations in Afghanistan.

At present, logistics information is delivered by a complex set of contractual arrangements, supported by an MOD in-house team. Those posts will transfer to BDUK under Transfer of Undertakings (Protection of Employment) Regulations 2006. Under FLIS, BDUK have been appointed as the single incentivised contractor, at a cost of £800 million over 11 years, to deliver MOD’s logistics information capability. FLIS is a modern commercial arrangement with BDUK as the single supplier responsible for delivery of current systems in a more effective and financially efficient manner. BDUK will manage a number of sub-contractors, many of whom are currently prime suppliers to MOD.

The new arrangement will ensure the long-term delivery of operationally essential logistics information to both MOD and industry and the significant financial efficiencies will contribute to the Government’s strategic deficit reduction programme, without reducing operational capability.

This new contract with BDUK provides an effective framework which will improve the delivery of today’s logistics information needs, and enable future changes to be made as a result of the strategic defence and security review to reflect the changing needs of defence.