QinetiQ extends £109m MOD contract at Portsmouth test facility

FTSE 250 defence technology company QinetiQ extended its contract with the Ministry of Defence for a over a decade, which secured 250 jobs at the Portsmouth warship integration and test facility.

The company agreed to an 11 year, £109m contract extension to continue to develop and de-risk the Royal Navy’s mission systems and infrastructure through testing at the Portsdown Technology Park in Portsmouth.

In collaboration with the Royal Navy, Defence Equipment and Support, a trading entity within the MOD, and BAE Systems, the contract will employ around 280 people in Portsmouth, and the site will receive investment from QinetiQ to modernise the facilities and equipment to improve services to the MOD and attract new customers.

Harriett Baldwin, minister for defence procurement, said: "This contract with QinetiQ is great news for the Royal Navy and for jobs in the region. Our commitment to Portsmouth is demonstrated by the Ministry of Defence's £100m investment [in Portsmouth naval base] over the next six years.

“With a rising defence budget we are ensuring that our armed forces have the equipment and support they need to keep the UK safe and secure."

The company said the renewal of the naval combat system integration support services contract, which was first signed in 2012, secured the site's future as a centre for maritime mission systems integration and testing.

QinetiQ chief executive, Steve Wadey, said the contract extension “reinforces our commitment to collaborating across industry to modernise the UK's test and evaluation capability, ensuring it continues to support the safety and operational advantage of our armed forces in the 21st century”.

Neal Lawson, director of ships support at the MOD, added that the arrangement will ensure that future Queen Elizabeth aircraft carriers and the new Type 26 Frigates “will have the world-class capability required to deliver the nation's global effect."

For over 45 years, Portsdown Technology Park has integrated and tested complex combat and communications equipment and software for all Royal Navy warships prior to deployment at sea, such as BAE Systems' Artisan surveillance radar and MBDA's Sea Ceptor missile.