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Ministry of Defence

Answer

Dr. Whitehead: To ask the Secretary of State for Defence (1) what action he is taking to ensure that the procurement strategy for the production and assembly of follow-on Type 45 destroyers is on a competitive basis; [142963] (2) what conditions are necessary for the procurement of the first batch of Type 45 destroyers to ensure that yards capable of competing for downstream batches have the opportunity to compete equitably; [142961] (3) when he expects contracts to be placed with BAE Systems Marine and Vosper Thornycroft for work on (a) the Type 45 First of Class, (b) ship 02 and (c) ship 03. [142962] Dr. Moonie: [holding answer 15 December 2000]: BAE Systems Electronics (the nominated Prime Contractor for the Type 45 programme) has the intention of letting the ship manufacturing sub-contracts with shipbuilders either when a satisfactory risk sharing arrangement emerges (which could happen next year) or when the ship design is sufficiently mature that the shipyards can take on the remaining risk at an affordable price (which is likely to be the case in 2002). The prime contract, placed on 20 December, covers the construction of the first three ships of the class only. Sub-contractors must now reach satisfactory agreements with the Prime Contractor to secure the opportunities offered to them under the contract; the MOD will-- through its involvement in the Integrated Project Team-- ensure that these negotiations are conducted fairly. MOD agreement to all significant sub-contracts will be required. Plans are to seek bids for the next batch of three ships around 2004. BAE Systems Marine and Vosper Thornycroft have expressed an interest in bidding for this work. Bids for work on the follow-on ships should be made to the Prime Contractor at the appropriate time.

Secondary information

Type

Written question

Reference

360 c251W; 142963;142961;142962

Session

2000-01

Subjects

Contracts Competition Procurement Warships BAE Systems Vosper Thornycroft Destroyers Type 45 destroyers

Link

View this Written question on www.publications.parliament.uk