The Portfolio Management Agreement

Provision of cutting-edge military capabilities through a portfolio approach delivering a modular family of weapons that achieves value for money and flexibility.

Overview

What is the Portfolio Management Agreement (PMA) between UK MoD and MBDA?

• It provides a contractual framework for the long-term acquisition of the UK’s Complex Weapon (CW) military capability which aims to improve flexibility and reduce cost
• It provides CW military capability to the UK Armed Forces with Operational Advantage which is the need for superior technology and other forms of battle-winning edge, and Freedom of Action which is being able to operate, maintain, and refresh certain capabilities effectively, without being dependent on others, allowing them to maintain an edge over adversaries now and in the future. The PMA ensures the skills and technologies critical for this are maintained
• The PMA benefits from joint long term planning and enables the flexible and agile delivery of common objectives
• It encompasses a number of MBDA inter-dependent weapons projects at different stages of maturity within the MOD’s procurement process. They are collectively managed as a ‘portfolio’ to deliver the military capability required by our Armed Forces

Purpose

Why would UK MoD and MBDA want to enter this type of agreement?

• UK MoD requires current and future military capabilities with both Operational Advantage and Freedom of Action. The PMA ensures all of these objectives are met and achieved at the best value for money
• MBDA requires a sustainable and profitable business and aims to be UK MoD’s supplier of choice for the supply and support of Complex Weapons
• Adopting this collaborative approach to the long-term delivery of UK CW Military Capability is the means by which both UK MoD and MBDA can achieve their respective common objectives

The benefits

What benefits does it provide to the UK?

Freedom of Action and Operational Advantage

• As demonstrated through Dual Mode Brimstone during OP ELLAMY in Libya and the need to respond to operational demands with a production surge

  

Value for money

• The Portfolio approach to procurement of Complex Weapons has been demonstrated and verified through UK MoD’s independent scrutiny and assurance process to be greater than £1Bn cheaper when compared to more traditional competitive procurement approaches over a rolling 10 year period
• Planned benefits are being delivered on or ahead of schedule

Industrial Capability

• An industry able to design, develop, assemble and upgrade Complex Weapons to meet UK MoD’s requirements