AgustaWestland2007-03-27 14:53:06

AgustaWestland Celebrates A Triple Win At The Minister For Defence Procurement Acquisition Awards Ceremony

AgustaWestland congratulates the joint UK Ministry of Defence (MoD) and AgustaWestland Strategic Partnering Team (SPT) and Integrated Merlin Operational Support (IMOS) team on both winning Minister for Defence Procurement Acquisition Awards. The prestigious awards are made each year to organisations demonstrating best practice in the Defence Acquisition Community. The awards were presented by Lord Drayson, Minister for Defence Procurement, to representatives from the SPT and IMOS teams at an awards ceremony held in London on 27th March. Additionally Lord Drayson made a Special Award for Partnering to the MoD and AgustaWestland Strategic Partnering Team.

Giuseppe Orsi, CEO, AgustaWestland speaking after the awards said "I congratulate the Ministry of Defence and AgustaWestland teams on winning these awards. The awards highlight the great progress AgustaWestland and the MoD have made on partnering, which culminated in the signing of the Strategic Partnering Arrangement in June 2006.�

Alan Johnston, Managing Director, AgustaWestland added "Both the Strategic Partnering and IMOS teams have introduced new groundbreaking ways of doing business, which are already delivering real benefits to the MoD and industry, but importantly also to the front line operators. The fact that the principles incorporated in both the SPA and IMOS, developed by the MoD and AgustaWestland teams, are being adopted by other industry sectors is an indication why the teams have won these prestigious Procurement Acquisition Awards.�

The UK MoD and AgustaWestland Strategic Partnering Team was selected for its groundbreaking Strategic Partnering Arrangement (SPA) and Business Transformation Incentivisation Agreement (BTIA) which overcomes the challenges of protecting military flexibility whilst improving industrial predictability. The SPT were praised for their great tenacity, flexibility and innovation to deliver the SPA and BTIA within extremely demanding timescales.

For the first time the agreements include contractual commitments and incentivisation for performance improvements across the full spectrum of the relationships between the MoD and AgustaWestland, with a strong focus on through-life support. The arrangement strikes an appropriate balance between the needs of the front line, the taxpayer and AgustaWestland's shareholder. The agreements include specific targets in terms of aircraft availability, schedule adherence, responsiveness, acquisition and support cost reductions and Design Authority assurance. Delivery of these targets will depend heavily upon business transformation within AgustaWestland and the MoD and will require closer co-operation in the development and prosecution of through-life capability management plans.

The IMOS team, led by AgustaWestland and the Defence Logistics Organisation, were praised for demonstrating best practice across a wide spectrum of disciplines during the development of the requirement and implementation of the IMOS contract. AgustaWestland as prime contractor has also signed partnering agreements with a number of companies including Lockheed Martin UK, Serco and Total Support Services, a strategic partnership between SELEX S&AS UK, Thales and Smiths, to successfully deliver this service to the Ministry of Defence.

In the area of risk management, a joint approach was taken involving stakeholders, resulting in the first level 4 maturity award to a Defence Logistics Organisation team. The team established best partnering practice, not only exhibiting the key partnering values but also by developing a series of new partnered business processes in joint functional teams using the Lean toolset.

The IMOS team established that IMOS needed to go further than other transformation programmes, adopting a whole life approach through a contract for aircraft availability. The award highlights the success that has been achieved through industry and the MoD partnering at all levels, which required a quantum shift in culture to enable integrated working.

Background

In June 2006 AgustaWestland and the Ministry of Defence (MoD) signed a Strategic Partnering Arrangement (SPA) and Business Transformation Incentivisation Agreement (BTIA). The SPA fulfils one of the key commitments outlined in the UK Government White Paper on Defence Industrial Strategy (DIS) in relation to the helicopter sector and is underpinned by the contractual BTIA. The IMOS programme is fully aligned with the DIS and the SPA, which places very strong emphasis on developing an effective and co-operative working environment between the two parties, based on increased transparency, openness and respect.

AgustaWestland was awarded the Integrated Merlin Operational Support (IMOS) contract in March 2006 to transform logistic support arrangements for the UK Ministry of Defence's (MoD's) fleet of EH101 Merlin helicopters. The partnering arrangement, valued at £450 million for the first five years of a 25 year contract, is now delivering an availability based support service for the UK MoD's fleet of EH101 Merlin Mk.1 and Mk.3 helicopters, operated by the Royal Navy and the Royal Air Force respectively.

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