§ Mr. HancockTo ask the Secretary of State for Defence what is the(a) timescale for the delivery and (b) total cost of the contract for the support system for the Rapier FS132 surface-to-air missile system; if the contract was for a fixed price; and if he will make a statement. [122376]
§ Dr. MoonieThe Rapier FSB2 surface-to-air missile system came into service in 1988. A contract for the support of the Rapier FSB2 system was signed with Matra British Aerospace (MBD) on 1 April 2000. Under the contract MBD will assume responsibility from MOD for the management, storage, repair and distribution of Rapier FSB2 spares until 2006–07 when the FSB2 goes out of service. The transfer of responsibility will take 12 months as the new arrangements are put in place. The contract was let for a maximum price of approximately £24 million (including VAT) and includes an incentive arrangement whereby any savings made by MBD are shared with MOD.