TWO Hampshire companies are part of a consortium that has won a contract to supply ground-to-air missiles to the Ministry of Defence.

Thomson Thorn Missile Electronics at Basingstoke and Wallop Defence Systems at Middle Wallop are among sub-contractors involved in a deal worth more than £200 million to provide Rapier ground-to-air Mark 2 missiles.

The MoD said it would provide work for 60 people at Basingstoke and a further eight at Middle Wallop. The order is to supply new and refurbished missiles, with deliveries to start in 2002.

Rapier missiles are for use by both the Army and the RAF Regiment for short-range defence of airfields from attack by hostile aircraft.

The supply contract was agreed under the "smart procurement" initiative introduced by the MoD after the government's strategic defence review in July 1998. This aims to avoid the delays and cost over-runs which have often plagued more complex defence equipment orders.

The MoD said the Rapier contract had saved more than 20 per cent of the original estimated cost and would deliver the missiles more quickly than under the traditional method.

Smart procurement gives more responsibility for managing the project to a prime contractor - in this case Matra BAe Dynamics - which in turn sub-contracts work to suppliers.

Greater allowance has also been made for future upgrades of equipment and there has been close contact between the companies involved and a project team from the Defence Procurement Agency.

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