23 Jul 2004

A consortium involving Interserve, the support services group, has been named preferred bidder for the MOD's Armoured Vehicles Training Service (AVTS) programme. The AVTS PFI programme is valued at approximately £1 billion, over 30 years. Subject to negotiations, a contract is expected to be signed in late 2005. Under the contract Interserve will provide services worth in the region of £120 million.

The AVTS programme is being established to provide turnkey driver, gunnery and command information systems training to crews of armoured fighting vehicles (AFVs). The UK armed forces have a fleet of some 5,000 AFVs comprising many different types of tracked and wheeled platform including the Challenger 2 tank and the Warrior infantry fighting vehicle. The programme, which will operate at Bovington, Dorset, and at other garrison sites in the UK and in Germany as well as with forces on operations when required, will involve the extensive use of advanced simulation technology as well as live training.

Interserve will be responsible for providing a range of hard and soft services across the operational estate and will also undertake some construction as the facilities are prepared.

Interserve has a 10 per cent stake in Landmark Training Consortium. The other members with equity investments are CAE, the  provider of simulation technologies and training services (65 per cent) and AgustaWestland, the Anglo-Italian helicopter and flight training company (25 per cent).

"The turnkey nature of the AVTS programme means that we shall be playing an important role in helping prepare the country's specialist troops for action," said Bruce Melizan, Managing Director of Interserve Investments. "Interserve is  an experienced service supplier to the MOD – we have three signed PFI/PPP agreements as well as a number of conventional contracts – and we are continually developing our approach to ensure we assist the MOD in maintaining best value for money."