Canberra,
Do'nt know if you are aware but in a previous life VT Aerospace were..... Airwork!! They are very aware of their reputation a la Boscombe and are terrified of it happening again. The really bad thing for them is of course , it is happening again!
The only way they can salvage anything from this is to come clean, admit they've made (big) mistakes with their bid for Wattisham, forget it this time and try again later.
Whether MOD now award the new contract to Serco, extend the existing one or re-bid the whole thing remains to be seen. Hey, what do I care, I only work there!!