Michael H. Standart
Member
From DefenceNews.com:
U.K., BAE Agree on Nuclear Submarine CostsFor the rest of the story, go to http://www.defensenews.com/story.php?F=2593778&C=navwar
Comment: Definately something to keep an eye on. Since the Royal Navy has staked everything on nuclear powered submarines for their undersea arm, they really can't afford to screw this up.
U.K., BAE Agree on Nuclear Submarine Costs
quote:
Negotiations over the price of two nuclear submarines being constructed for the U.K. Royal Navy by BAE Systems could be coming to a close.
In its response to a Parliamentary Defence Committee investigation into major procurement programs, Ministry of Defence officials revealed on Feb. 27 that government negotiators and BAE Submarine Solutions had agreed on a deal, but that it still required endorsement by the hierarchy of the two sides.
Neither the government nor BAE would comment on the status of the pricing plan.
In December, the Defence Committee report expressed surprise that no price had been settled upon, particularly because that meant the financial liability to the MoD on building the boats was open-ended.
The deal relates to Boats 2 and 3 now being assembled at BAE’s nuclear submarine yard at Barrow-in-Furness. If the prices are approved, a new order for the fourth of the Astute-class boats is expected to rapidly follow.
The National Audit Office, a government watchdog, reported in November the forecast cost of the first batch of three vessels was 3.6 billion pounds ($7.1 billion).
Comment: Definately something to keep an eye on. Since the Royal Navy has staked everything on nuclear powered submarines for their undersea arm, they really can't afford to screw this up.