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AugustaWestland Lands GBP 450M Through-Life Support Contract for UK EH101s

Related Stories: Britain/U.K., Contracts - Awards, Finmeccanica, Helicopters & Rotary, Logistics Innovations, Procurement Innovations, Support & Maintenance

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RAF EH101 Merlin HC3
(click to view full)

DID keeps talking about the UK’s extensive efforts to strike long-term, through-life support contracts for various weapons systems under a “contracting for availability” (rather than for maintenance hours) framework. In return, the UK Ministry of Defence (MoD) keeps driving the point home with new contracts that enciompass more and more of their military.

The MoD has now awarded EH101 manufacturer AugustaWestland a GBP 450 million ($656 million at current rates) Integrated Merlin Operational Support (IMOS) contract under a non-competitive, partnering contract framework. The Royal Air Force currently flies 22 EH101 Merlin HC3 medium helicopters that work with the army, whilst the Royal Navy’s 42 soon-to-be upgraded EH101 Merlin Mk1s are used for both Anti-Submarine warfare and Anti-Surface warfare. This single 25-year contract will cover both helicopter types, and will work as follows…

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EH101 Mk1 w. Blue Kestrel
(click to view full)

AgustaWestland will provide an extensive aircraft availability service with a Main Support Base at RNAS Culdrose. Responsibilities will include repair and overhaul, and the management of the complete Merlin supply chain.

Minister for the Armed Forces Adam Ingram said:

“Until now MoD has operated separate support systems for the two different types of Merlin aircraft. This was the best approach when introducing both helicopters into service, but not the optimum way to manage support in the long-term. This new contract will incentivise industry to increase the availability of Merlin helicopters to the Front Line Commands, while saving the MoD and UK taxpayers around GBP 1 billion in support costs over the next 25 years. These arrangements will also sustain up to 1,200 jobs, many of which are at AgustaWestland in Yeovil. This through-life approach to supporting operations is a good example of MoD’s recently announced Defence Industrial Strategy in action.”

The IMOS contract is a single 25 year contract, with five year price breaks, to provide through-life support for the MoD EH101 Merlin fleet to its planned out of service dates of 2029 (Royal Navy Mk1) 2030 (RAF Mk3). See UK MoD release.

The EH101 naval helicopter is also in service with the Italian Navy and the Canadian armed forces and been ordered by the armed forces of Japan (14), Denmark (14) and Portugal (12). A modified US101 variant will also serve as the new “Marine One” US Presidential helicopter, and is one of the competitors in the USA’s $8-10 billion CSAR-X combat search and rescue helicopter program.

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