Contract Win

RNS Number : 5506W

QinetiQ Group plc

22 November 2010

QinetiQ Group PLC

QinetiQ's US Services business selected by NASA to provide engineering support to Kennedy Space Centre

QinetiQ Group PLC notes the announcement by NASA that it has selected QinetiQ North America to provide engineering services at the Kennedy Space Centre in Florida (www.nasa.gov/home/hqnews/2010/nov/HQ_C10-070_KSC_ESC.html.)

In the announcement NASA states that the new cost-plus-award-fee contract is expected to begin on 1 March 2011 for a base period of five years with three, one-year options and that the maximum potential value of the award is approximately $1.959bn. This comprises a base contract of $159m and a single award IDIQ (indefinite delivery indefinite quantity) of $1.8bn.

QinetiQ North America has now entered into discussions with NASA to finalise the details of the contract, including the scope of work expected under the initial increments of the IDIQ, which will not equate directly to the headline ceiling value of the award. Margins on this contract are expected to reflect the relatively stable long-term revenue and good cash profile associated with this type of agreement.

The work will be undertaken by QinetiQ's US Services business and its partners and is likely to include:

· design and development of ground systems and equipment for handling, test, checkout, servicing, and other ground processing of launch vehicles, spacecraft, and payloads,

· flight systems engineering and support engineering for space flight hardware and software,

· development of technology that addresses NASA mission requirements and operational needs,

· operation of laboratories and developmental shops.

QinetiQ's US Services business also supports NASA's work at the Glenn Research Centre in Ohio and the Goddard Spaceflight Centre in Maryland with capabilities spanning a broad range of aerospace engineering, test, IT, and operational disciplines.

ENDS

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