Manufacturer exits, concerned at high level of risk to be borne by successful contractor team, but partners will stay in
In a surprise move, BAE Systems has withdrawn from the competition to select a training systems integrator for the future UK Military Flying Training System (UKMFTS). The company said last week that the move was "in the best interests" of its shareholders and the UK Ministry of Defence.
BAE had teamed with Canada's Bombardier and Serco of the UK to contest the programme, which is worth more than £12.5 billion ($22.9 billion), but last month voiced concern over the expected high level of risk to be borne by the successful contractor team (Flight International, 23-29 March).
Bombardier and Serco have confirmed their intention to stay in the contest, and are assessing options to expand their team or to partner with other current bidders. Despite BAE's departure, "we think we're a pretty powerful team", says Bombardier.
The company is promoting its experience in running the NATO Flying Training in Canada (NFTC) scheme, while Serco hopes to build on its current military training work in the UK. This includes a potential seven-year deal to lease Raytheon Beech King Air B200 multi-engine pilot training aircraft to the Royal Air Force.
Another three consortia are bidding to meet the UKMFTS requirement: Boeing and Thales; Kellogg Brown & Root and EG&G/Lear Siegler (Team Vector); and Lockheed Martin, Rolls-Royce and VT Group (Ascent). The MoD will issue concept system design contracts to the four teams by mid-year, and select a prime contractor from March 2005.
Far from turning its back on aircrew training programmes, however, BAE is to concentrate its efforts on key campaigns, says its Customer Solutions and Support business unit. An early focus will be to secure the training and support packages associated with the UK's operation of up to 44 Hawk 128s from 2008. Selected last year, the aircraft will provide the Advanced Jet Trainer element of the UKMFTS with total business to reach around £3.5 billion, says BAE. The company says it will also pursue other opportunities under the UKMFTS framework.
BAE also remains interested in managing selected private finance initiative/public-private partnership schemes for the MoD, it says.
CRAIG HOYLE / LONDON
Source: Flight International
