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Ministry of Defence;Defence Procurement Agency

Answer

Mr. Hancock: To ask the Secretary of State for Defence what the total value is of Swan Hunter's and BAE Systems Marine's contracts for the (a) ALSLs and (b) Type 45 Destroyer; what the current status is of the contracted programmes; when the programmes are expected to be completed; and if he will make a statement. [139652] Mr. Hoon: This is a matter for the Chief Executive of the Defence Procurement Agency. I have asked the Chief Executive to write to the hon. Member. Letter from Robert Walmsley to Mike Hancock, dated 28 November 2000: I am replying to your question to the Secretary of State for Defence concerning the value of contracts placed with Swan Hunter and BAE SYSTEMS Marine for the Alternative Landing Ships Logistic (ALSLs) and Type 45 Destroyer, the status of the contracted programmes and expected completion dates. This matter falls within my area of responsibility as Chief of Defence Procurement and Chief Executive of the Defence Procurement Agency. The value of the contracts to be placed with Swan Hunter and BAE SYSTEMS Marine for 4 ALSLs is expected to be approximately £300M. Negotiations with both contractors are currently taking place to agree contract terms, conditions and price. It is our aim to bring these ships into service between Autumn 2004 and Summer 2006. On the Type 45, the MoD has not placed any contracts with Swan Hunter or BAE SYSTEMS Marine. It remains our plan to place the contract for the first three Type 45s with BAE SYSTEMS Electronic, the nominated Prime Contractor for the Type 45 Programme, by the end of this year, with the first ship to enter service in 2007. As the Secretary of State said in the House on 11 July (Official Record, cols. 701/2), we intend that the first and third ships will be assembled by BAE SYSTEMS Marine and the second by Vosper Thornycroft. The Prime Contractor will sub-contract to these two shipbuilders at prices to be agreed between the Companies. Negotiations are still underway and we are not yet in a position to state the value of work that might be placed with a particular yard. The planned modular assembly approach also means that there will be the opportunity for other shipbuilders to bid for the competed element of Type 45 manufacture work.

Secondary information

Type

Written question

Reference

357 c494W; 139652

Session

1999-00

Subjects

Contracts Procurement Prices Shipbuilding Warships Swan Hunter Shipbuilders Logistics BAE Systems Type 45 destroyers

Contains statistics

Yes

Link

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