BAE Systems Awarded £24 Million Torpedo Extension Contract

BAE Systems, WATERLOOVILLE, UK: BAE Systems has been awarded a £24 million contract by the Ministry of Defence (MoD) for the Spearfish Transition Extension Programme (STEP). 
 
Spearfish is a submarine launched heavyweight torpedo for use against both surface and submarine targets and therefore provides the primary offensive and defensive armament of the Royal Navy Submarine fleet. STEP is a one year extension to the existing three year Spearfish In Service Support (ISS) contract and commenced on the 1 April 2008. The contract comprises the maintenance of the war shot and exercise torpedoes to the Royal Navy fleet and the provision of design authority and repair services. 
 
The MoD is currently considering the long-term support options for its future torpedo capability, one of which is a long-term partnering arrangement with BAE Systems. A decision is expected by March 2009, and if pursued this long-term contract (for 10 years or more) would provide a more coherent and holistic arrangement for managing Spearfish heavyweight and Sting Ray lightweight torpedo assets throughout the life of the programmes whilst retaining sovereign skills in the most cost effective manner. 
 
Paul Laity, Director, Naval Programmes, BAE Systems Integrated Systems Technologies said: “This contract extension is evidence of our commitment to deliver continued value to the Royal Navy and will ensure the Royal Navy has the best capability available throughout the life of the programmes.” 
 
BAE Systems is the premier global defence and aerospace company delivering a full range of products and services for air, land and naval forces, as well as advanced electronics, information technology solutions and customer support services. With 97,500 employees worldwide, BAE Systems' sales exceeded £15.7 billion (US$31.4 billion) in 2007.