MBDA yesterday announced a long term partnership with the U.K. Ministry of Defence for the development and supply of complex weapons (CW) to counter current and future threats to the U.K. armed forces.

MBDA is jointly held by BAE Systems, European Aeronautic Defence and Space Co. and Finmeccanica.

Under the interim Portfolio Management Agreement (PMA-I), MBDA will lead the transformation of the U.K.’s CW capability through the management of a portfolio of projects worth up to nearly US$ 6 billion over the next 10 years.

As part of the agreement, MBDA has signed an approximately $493 million contract for the first package of projects focused on deployment of new military capabilities into Afghanistan. Over the next decade, as further military capabilities are added, the portfolio approach is expected to deliver about $1.2 billion in efficiencies.

The initial contract will see MBDA deliver capabilities directly related to today’s war fighting environment: Fire Shadow Loitering Munition for the British Army and Selected Precision Effects at Range (SPEAR) Capability 2, Block 1 for the Royal Air Force jets. Both projects are now moving into their respective Demonstration and Manufacturing Phases.

The contract also requires MBDA to carry out further Assessment Phase work on SPEAR Capability 3 to equip the Joint Strike Fighter and Future Local Area Defence System (FLAADS) to equip the Royal Navy’s Future Surface Combatant. This is in addition to the ongoing Assessment Phase on Future Anti-Surface Guided Weapon/Anti-Navire Leger in cooperation with the French DGA to equip U.K. and French naval helicopters.

The interim PMA is the culmination of joint work since the launch of Team CW in 2006 to transform the procurement arrangements for Complex Weapons to reflect the principles of the Defence Industrial Strategy and Defence Acquisition reform. MBDA has focused on demonstrating that this new approach is affordable, responsive and flexible to the needs of the UK MoD while ensuring the very best in complex weaponry is made available to the U.K. armed forces.

Steve Wadey, MBDA Executive Group technical director and managing director UK, responding to the news, said: “Complex Weapons are a fundamental component of U.K. military capability, providing our armed forces and their platforms with the assured battle-winning edge in operations. The Portfolio Management Agreement represents a major milestone and sets a benchmark for partnering between U.K. MoD and industry. MBDA will work together with UK MoD to transform the way these weapons are supplied and supported to deliver the best equipment to the front line, best value for money to the taxpayer and sustain a healthy UK industrial base.”