THE future of QinetiQ's test and evaluation services run from Boscombe Down has been secured after defence minister Lewis Moonie signed a 25-year contract worth up to £5.6 billion.

The new contract, which takes effect on April 1 and covers the management of the MoD's 22 principal ranges, replaces the short-term contracts under which QinetiQ had previously managed the sites.

The Carlyle Group has taken a 33.8 per cent stake in QinetiQ, while 2,000 employees have bought 3.7 per cent of the company's equity.

Announcing the new contract in the House of Commons, Dr Moonie said he was confident that it would deliver substantial savings for the taxpayer.

"More importantly, it will provide a framework within which innovation and efficiency are encouraged and rewarded," he added.

Sir John Chisholm, QinetiQ's executive director, said that the contract marked a milestone in releasing the power of the company's science and technology to the benefit of its commercial and military customers.

QinetiQ can now "invest in creating the kind of world class facilities which will provide our customers with the service they need at a price they can afford, while allowing our staff to participate in a challenging and rewarding future," he said.