Multimillion pound defence contracts awarded

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Logistics provider Ryder and Lex Transfleet have both been awarded multimillion fleet management contracts with the Ministry of Defence (MoD).

The deal between the MoD and Ryder is worth £80M and comprises a six-year plus three-year option for the latter company to provide pan-European full-service contract hire and fleet management services. The contract takes effect from April 1, 2004.

Ryder is to supply the British Forces stationed primarily in Germany’s Rhineland with more than 2,100 vehicles.

The latest deal replaces an existing contract that Ryder has managed since 1995. And Ryder has also teamed up with service provider Serco, through a joint venture company called LOGICAIR, to bid for other major MoD outsourced projects such as the Airfield Support Services Project (ASSP), which is worth more than £1Bn.

Meanwhile Lex Transfleet, trading as Lex Defence, has become Aspire Defence’s Provisional Preferred Transport Provider, to supply a comprehensive transport support service to the British Army’s garrisons in Aldershot and around Salisbury Plain, as part of the Allenby-Connaught Private Finance Initiative (PFI) project. The transport contract is worth an estimated £90M over an initial period of ten years and is renewable for a further 20 years beyond that. Service is expected to commence in the second half of 2004.

In July 2003, Aspire Defence, a joint venture between Kellogg Brown & Root (KBR) and Mowlem, was named by the Ministry of Defence (MoD) as the Provisional Preferred Bidder for the £4Bn PFI contract to upgrade and provide a range of services to the British Army’s garrisons at Aldershot and around Salisbury Plain. In addition to a £3Bn package of services to be delivered over 30 years, the contract includes a £1Bn construction programme to improve soldiers’ single living accommodation, leisure and recreational facilities, technical and administrative accommodation.

Lex Transfleet, a joint venture between the RAC and Lombard North Central, will provide a complete fleet and asset management service, for both Green Fleet and White Fleet vehicles, including all support services, such as maintenance and repair, breakdown recovery, incident management, accident repair, driver provision and vehicle rentals, using where appropriate the infrastructure of Lex Defence’s existing £700M White Fleet contract with MoD.

In providing the MoD’s non-combat fleet of 13,500 – plus vehicles, through the ten year UK White Fleet contract, Lex Defence provides a comprehensive vehicle support service for military customers on a tri-Service basis, including the permanent vehicle fleet and the supply of short term rental services.

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