Britain's Ministry of Defense has agreed to a $1.26 billion contract modification with QinetiQ to update various training and testing facilities.

Defense officials signed off on the deal after forging a Long Term Partnering Agreement with the company. Under the new contract, QinetiQ will deliver an estimated $379 million of efficiencies over the next 11 years.

"This new deal will ensure our Armed Forces get world-class training and testing facilities and services while making substantial efficiencies, ensuring excellent value for money for the taxpayer," defense procurement minister Harriet Baldwin said in a press release.

The agreement covers work on three air ranges, including Aberporth in Wales, Herbrides in Scotland, and Boscombe Down in Wiltshire. The upcoming modernization effort will aim to reduce infrastructure cost and update aircraft and supporting equipment.

The Long Term Partnering Agreement, or LTPA, also includes a pledge to work with small and medium enterprises in a stated effort to bolster innovation.

"The LTPA contract amendment represents a great deal for both the MOD and the UK Defence industry for the next 11 years," Defense Equipment and Support chief Tony Douglas added. "It is another example of how DE&S works with UK companies to ensure value for money and the best equipment and support for our Armed Forces."

The LTPA contract between the U.K. Defense Ministry and QinetiQ initially came into effect in April 2003. The total estimated cost of the deal is over $7 billion.