Annex
PURCHASING ARRANGEMENTS
DEVELOPMENT
| Contractor | Contract Type
| Procurement Route |
| Eurofighter GmbH Airframe consortium comprising: Alenia, BAe Systems, EADS (Deutschland), and EADS (CASA).
| Fixed prices for airframe and aircraft equipments, with a target cost incentive arrangement for aircraft equipment integration.
| Non-competitive, but with international sub-contract competitive elements, the value of which amounts to some 30% of the overall value of the prime contract.
|
| Eurojet GmbH Engine consortium comprising: FIAT, ITP, MTU, Rolls Royce.
| Fixed price. | Non-competitive, but with international sub-contract competitive elements, the value of which amounts to some 10% of the overall value of the prime contract.
|
| |
|
PRODUCTION INVESTMENT/PRODUCTION
| Contractor | Contract Type
| Procurement Route |
| Eurofighter GmbH Airframe consortium comprising: Alenia, BAe Systems, EADS (Deutschland), and EADS (CASA).
| Overall maximum prices for production investment and production of airframes. Overall firm prices for production investment and production of aircraft equipment.
| Non-competitive, but with international sub-contract competitive elements, the value of which amounts to some 30% of the overall value of the prime contract.
|
| Eurojet GmbH Engine consortium comprising: FIAT, ITP, MTU, Rolls Royce.
| Overall Maximum prices for production investment and production of engines.
| Non-competitive, but with international sub-contract competitive elements, the value of which amounts to some 10% of the overall value of the prime contract.
|
| |
|
PROJECT COSTS
SUMMARY
Breakdown of Procurement costs
(All figures at outturn prices in £m)
| Total |
| Estimate at 31 March 2000 | 18,832
|
| Estimate at time of MoD approval—November 1987
| 17,364 |
| Difference | +1,468 |
| |
REASONS FOR
COST VARIATION
Reasons for variation from cost approved at MoD approval
in November 1987:
Factor
| Increase
£m
| Decrease
£m |
Explanation
|
Inflation | 378
| | Difference in annual price uplift between industry specific indices and GDP deflator for development (+£224m) and production (+£154m).
|
| Changed requirement | 239 |
32 | Provision for integration of new weapons and sensors not contained within original approval. Includes: Conventionally Armed Stand-off Missile (CASOM), Advance Anti-Armour Weapon (AAAW), Low Level Laser Guided Bomb (LLLGB), Thermal Imaging Airborne Laser Designator (TIALD) (+£239m)
Deletion of gun (¸£32m).
|
| Technical Factors | 316 |
| Higher than expected development costs, notably for equipments.
|
| Contracting Process | 108 |
165 | Reprofiling and adjustment of anticipated Tranche 2 and 3 Airframe, Equipment and Engine prices (+£103m). Introduction of benefits to be assumed from planned implementation of Smart Acquisition processes (¸£165m). Reassessment of the cost and timing of integrating new weapons (+£5m).
|
| Procurement Strategy | 413 |
| German withdrawal from certain equipments (+£106m); Reorientation costs (Development Assurance Programme to bridge gap between development and production investment, (+£28m); extension of the Integrated Logistic Support programme (+£45m); Eurofighter/Eurojet GmbH management costs (+£30m); contract price increases £87m); risk provision (+£117m)).
|
| Accounting Adjustments | 477
| 218 | Changes in accounting rules, to include intramural costs (+£275m); transfer of costs of industrial consortia management activities from production phase to support phase (¸£218m); derivation of approved cost on a resource basis (+£202m).
|
| Exchange rate variation | |
48 | Improvement in exchange rate since production approval given.
|
| Total | 1,931 | 463
| |
| Total balance | 1,468 |
| |
|
| | |
Expenditure to 31 March 2000: £4,367 million.
| Approval | Date
| Explanation |
| First Approval | 1984
| Feasibility Study |
| Latest Approval | 2000
| Through Life Support |
| |
|
| Years of peak expenditure: | 2001-02 and 2002-03
|
| Further expenditure in clear prospect, at outturn prices:
| Nil |
| Unit production cost at outturn prices:
| £57.8m |
| Quantities required: | 232
|
April 2000
|
|
METEOR
Meteor is an all-weather, beyond visual range air-to-air
missile to equip Eurofighter, which is being procured from Matra
BAe Dynamics (MBD) in collaboration with our Eurofighter partner
nations (Germany, Italy, and Spain), France, and Sweden. It was
selected in May 2000, following an intensely fought competition
between MBD and Raytheon Systems Ltd. Contract negotiations with
MBD, and discussions with our partners on a Memorandum of Understanding,
are now being completed, and it is intended to sign both documents
around the middle of this year. Meteor should come into service
on Eurofighter around the turn of the decade.
OPERATIONAL REQUIREMENT
1. The requirement is for a medium range air-to-air missile
for the Eurofighter. Initial planning assumptions were based on
the ability of the AIM-120B Advanced Medium Range Air-to-Air Missile
(AMRAAM) to meet the longer-term threat, but changes in the operational
environment led to the issue of a revised Staff Requirement in
June 1995. It underlined the need for the fighter to achieve a
large "no escape zone" against manoeuvring targets during
beyond visual range air-to-air combat, and to maximise the number
of firing opportunities. The Staff Requirement also employed the
principle of "performance objectives" as opposed to
"essential criteria". This was designed to prompt bidders
to propose innovative solutions and as wide a range of options
as possible.
TRADE-OFFS
2. The missile should possess the capability subsequently
to upgrade major missile sub-systems as a result of more cost-effective
technology and evolution of the threat. The Staff Requirement
sought to encourage the designers to share the risk by matching
and trading the performance requirements to a realisable and affordable
design solution.
NUMBERS
3. ***
STRATEGIC DEFENCE
REVIEW
4. The BVRAAM programme was considered during the Strategic
Defence Review, when the difficulties of achieving the in-service
date were assessed. It was concluded that BVRAAM remained a key
capability.
MILITARY CAPABILITY
5. Meteor will be the primary air-to-air weapon for Eurofighter.
It will provide a key capability in achieving and maintaining
air superiority wherever Eurofighter is deployed. Meteor will
allow Eurofighter to engage multiple and manoeuvring targets simultaneously,
at greater range than before, in all weathers, day or night, and
with a greater level of survivability.
EQUIPMENT TO
BE REPLACED
AND IN
-SERVICE DATE
6. Meteor will not specifically replace any other programme.
Instead, it represents a new generation of weapon designed to
equip a new generation of fighter.
7. The original "most likely" ISD for BVRAAM
was 2005, but this moved in the SDR, partly because the technology
was insufficiently mature, to a planning assumption of around
2008. More recently, however, in assessing the BVRAAM competition,
it was recognised that this 2008 assumption for meteor was unrealistic.
Under the new approvals procedure, a 90 per cent confidence ISD
of August 2012 was approved for Meteor at Main Gate; the expected
(50 per cent) date is September 2011. Until Meteor comes into
service, Eurofighter will be armed with the Advanced Medium-Range
Air-to-Air Missile (AMRAAM), manufactured by Raytheon. An interim
buy of AMRAAM missiles would have been required whichever BVRAAM
solution was chosen.
ACQUISITION APPROACH
8. Competition has been maintained throughout the project,
both at prime and sub contractor levels, to ensure best value
for money. Bidders were required to submit firm prices for an
initial five-year period from award of contract and fixed prices
thereafter.
9. A Request for Information was issued in February 1994
to a wide range of national and foreign government agencies, potential
prime contractors, and major equipment suppliers. Responses received
by the MoD in late 1994 suggested that a project was technically
feasible and capable of completion within a suitable timescale.
Four potential partner nations, Germany, Italy, Spain, and Sweden,
agreed in principle in 1995 that the UK BVRAAM specification broadly
met their baseline missile requirements for Eurofighter and, in
the case of Sweden, JAS 39 Gripen. These nations were invited
to assess the bids jointly with the UK, with a view to agreeing
on a common solution. In July 1999 France joined the programme,
having identified that the BVRAAM specification broadly met their
capability requirements for Rafale.
10. An invitation to tender was issued in December 1995,
requesting bids for the full capability missile, as well as proposals
for a staged capability (ie an interim capability missile with
the potential for upgrade). Two companies, Raytheon Systems Ltd
(formerly Hughes) and Matra BAe Dynamics (MBD), submitted bids.
Raytheon submitted proposals for a Future Medium Range Air-to-Air
Missile (FMRAAM), a full capability missile, and the Extended
Range Air-to-Air Missile (ERAAM), with a proposed growth path
to full capability. MBD proposed only a full capability missile,
Meteor.
11. Assessment highlighted areas of major technical risk
in each bid, and it was decided not to award an immediate Development
and Production contract. Instead, contracts for a Project Definition
and Risk Reduction phase were placed with the two bidders in August
1997. Revised bids to meet the requirement were received in May
1998, and these were followed by an additional, unsolicited offer
of Raytheon's ERAAM+ under the umbrella of a joint UK/US collaboration.
Best and Final Offers were received from both companies in September
1999 and, following Ministerial consideration, a decision to buy
Meteor was announced on 16 May 2000. Since then, negotiations
with the company have progressed well, and a formal contract signature
is expected around the middle of this year.
ALTERNATIVE ACQUISITION
OPTIONS
12. No suitable "off-the-shelf" missile was
assessed as being able to meet the BVRAAM requirement. Options
considered in the early stages, but deemed not to have the required
performance, were the Matra MICA, the Alenia Aspide, and the British
Aerospace Dynamics Active Skyflash.
COLLABORATION
13. Meteor is a collaborative project in partnership
with Germany, Italy, Spain, France, and Sweden. The partners signed
a Statement of Intent in June 1998, confirming their decision
to explore a co-operative development and production programme.
The UK are leading the programme, with industry responsible for
defining work-share based on technical excellence, manageable
risk, and best value for money, rather than any predetermined
formula. It has been agreed that the Meteor collaborative development
and production contract will be placed by the MoD under UK contracting
law. The UK intend to place a combined full development and production
contract with MBD, with production options included to cover potential
partner nations who do not wish to commit to production from the
outset. A Memorandum of Understanding (MoU) is now close to being
finalised, setting out the contractual, financial, and management
arrangements for the programme. The other nations then need to
commence their own formal national approvals processes. It is
intended that these will be concluded to enable signature of the
MoU just ahead of the contract signature. A formula for cost share
is being developed which would be fixed at the start of the development
phase.
14. All our European partners have shown strong political
support for the programme, both during the bid assessment and
following the announcement of the UK decision. Missile requirements
and in-service dates (ISDs) for the other nations have yet to
be advised. An International Joint Project Office (IJPO) has been
established within the MoD Defence Procurement Agency under the
UK's BVRAAM Integrated Project Team Leader. The salary cost of
partner nations' representatives are being borne by their governments.
EXPORT POTENTIAL
15. Meteor has excellent prospects for sales, particularly
as part of an integrated package on Eurofighter. The opportunities
for overseas sales could be widened by possible sales of Gripen
and Rafale.
INDUSTRIAL FACTORS
16. Industrial factors were taken into account in the
assessment of bids. Meteor offered particular advantages in terms
of the quality and sustainability of the jobs involved. MBD stated
that a total of 2,400 jobs would be created or sustained in Europe;
1,200 of these would be in the UK.
SMART ACQUISITION
17. The BVRAAM invitation to tender invited companies
to provide alternative proposals for a staged approach to meeting
the requirement; indeed, Raytheon offered both a full capability
missile and a staged approach to achieving full capability. Bidders
were also advised that the MoD was prepared to consider other
innovative proposals, including a PFI arrangement.
18. The Meteor programme embodies Smart Acquisition principles.
The decision process considered whole life costs and the contract
will include incentives to reward good performance as well as
penalties for failure to meet agreed targets. The IPT has also
entered into a partnering agreement with the Prime Contractor.
Emphasis is being placed on continued delivery of value for money,
and gain-sharing potential will be kept under continuous review.
In addition the contractor has agreed to a series of four key
technological milestones, to demonstrate successful progress during
the development phase. If the company fails to achieve any of
these milestones, against clearly measurable acceptable criteria,
termination of the contract can be initiated, with all money being
returned to the partners.
ACQUISITION PHASES
19. The acquisition phases are shown in the table below:
Phase | Date
| Activity |
Feasibility | February 1994
| Request for Information issued. Cardinal Points Specification issued (April 94). Invitation to tender issued (December 95).
|
| Project Definition and Risk Reduction | August 1997
| Reduction of major technical risk. |
| Assessment of tenders | May 1998
| Included Best and Final Offers in September 1999, to reflect the late involvement of France.
|
| Prime contractor selection | May 2000
| Contract negotiation. Drafting of Memorandum of Understanding.
|
| |
|
20. The assessment of the Meteor proposal identified
four key technological risks, detailed in the table below, which,
should they be manifested, could result in the inability of MBD
to deliver a sufficiently robust solution to the BVRAAM requirement.
The "key milestones" principle described in paragraph
18 corresponds to successful demonstration that these risks have
been overcome.
Key Technical Risks
The ability of the missile motor to operate in a reliable and
repeatable manner throughout the launch envelope.
The ability to maintain sufficient control of the missile to ensure
that it intercepts its target.
The ability to minimise missile/launch aircraft navigation system
errors.
The ability of the missile to achieve target intercept in a defined
set of countermeasure environments.
MILESTONES AND
COSTS
21. It is anticipated that the UK will be in a position
to sign the Memorandum of Understanding with our partner nations
around the middle of this year. This will be followed by contract
placement. The development phase will contain four technological
milestones as described above.
22. Expenditure up to 31 March 2000 was £21 million
(VAT incl at 1999-2000 prices). The total approved (90 per cent)
acquisition resource costs at Main Gate in May 2000 is £1,440
million, including the purchase on interim AMRAAM missiles. The
expected (50 per cent) cost is £1,368 million. The years
of peak expenditure are likely to be 2001-11 and 2011-12.
IN -SERVICE
SUPPORT
23. The aim of the Meteor Integrated Logistic Support
strategy is to minimise the support costs whilst maintaining weapons
availability. The weapon is being designed under an "all
up round" principle to reduce through life logistic support.
MBD will be responsible for the first 10 years of logistics support,
covering spares, repairs, Post Design Services, and a Surveillance
and Life Extension Programme. Very little maintenance will be
required on the Meteor system, with the missiles and support equipment
being returned for repair to MBD once any fault has been confirmed.
Contracts after the initial 10-year period will be subject to
negotiation.
24. Provision of initial operator and maintainer training
and the associated training package are likely to be the responsibility
of MBD, with future continuation training being undertaken with
RAF resources. A number of ground-handling training missiles and
explosive ordnance disposal training missiles will be procured.
A full suite of technical publications required to operate and
maintain Meteor will be produced in full electronic format.
25. Discussions between the UK, MBD, and our partner
nations on support philosophies are underway as part of the contract
negotiation discussions. All partner nations have indicated that
they would like to pursue a collaborative support contract for
Meteor with the benefit of greatly reducing each partner nation's
support costs. The draft support contract is being worded to enable
any partner nation to join in this combined support contract as
they commit to production.
FRONT LINE,
STORAGE AND
RESERVE NUMBERS
26. Current plans for operational missiles require ***
to be placed in storage and *** to be allocated to Main Operating
Bases. This includes telemetered rounds ***.
INTEROPERABILITY
27. The BVRAAM programme was conceived exclusively for
Eurofighter, where the main carriage method is semi-recessed under
the fuselage. This represents a prime driver in the missile design.
Meteor will also be integrated with Gripen and Rafale by Sweden
and France respectively and will therefore be interoperable with
these nations in addition to our Eurofighter partners. Whilst
the extant UK requirement provides only for integration on Eurofighter,
integration issues with respect to the Joint Strike Fighter variant
selected as the UK's Future Carrier Borne Aircraft will also be
assessed.
IN -SERVICE
LIFE
28. Meteor has a required 25-year design life.
DEVELOPMENT POTENTIAL
29. Through-life development of the missile will be considered
as the project progresses.
April 2001
ADVANCED SHORT RANGE AIR-TO-AIR MISSILE (ASRAAM)
The Advanced Short Range Air-to-Air Missile (ASRAAM) is a
highly agile, passively guided anti-air weapon, which is due to
be deployed on the Tornado F3, Harrier GR9, and Sea Harrier FA2
to replace the Sidewinder AIM-9L missile, and will also be fitted
to Eurofighter. Although ASRAAM was originally conceived as a
collaborative project, our partners withdrew when the programme
encountered difficulties. ASRAAM was re-endorsed as a national
programme in 1990. Contracts for Full Development and Production
were let in 1992.
OPERATIONAL REQUIREMENT
1. The requirement for a highly agile missile with good
infra-red countermeasure resistance was driven by the need for
short-range air superiority in visual combat. Such a missile would
provide Eurofighter with a substantial advantage against the forecast
threat at the turn of the century, and would be complementary
to Skyflash and Meteor (see separate memorandum).[3]
The missile would, additionally, be an important factor in the
overall capability of the Tornado F3 and the ability of offensive
air support aircraft, such as Harrier, to defend themselves effectively.
2. Initially, the UK sought to meet the national requirement
for a short-range air-to-air missile through participation in
a collaborative development for a family of weapons. In accordance
with a Memorandum of Understanding between the UK, the US, and
Germany, signed in 1980, a tri-national Staff Requirement was
agreed in October 1984. Subsequent budgetary pressures, technical
and management problems, and changes to US requirements caused
our partners to withdraw from the project. The Staff Requirement
was re-endorsed as a UK national programme in 1990 without any
significant changes since the original approval.
TRADE-OFFS
3. Although the programme has encountered some technical
difficulties and slippage, the UK's Staff Requirement, as re-endorsed
in 1990, has not been altered. However, in the event that the
specified performances cannot be achieved in every respect by
the due date (see paragraphs 8 and 9 below), reconsideration of
the performance, time, and cost balance will be necessary.
NUMBERS
4. The original NATO stockpile requirement for *** missiles
as at December 1987, was ***, with options on a further *** in
September 1990, as a result of changes in the threat assessment
and in the Eurofighter programme. Following a review of the operational
and training usage of ASRAAM missiles, based on planning assumptions
for Eurofighter and Harrier GR9, a second tranche, *** missiles
was approved in January 1994. A further review of the requirement,
in 2000, ***. Of these *** will be for full operational use and
*** will be telemetery missiles for trials firing ***.
STRATEGIC DEFENCE
REVIEW
5. The Strategic Defence Review did not affect the requirement
or existing orders.
MILITARY CAPABILITY
6. ASRAAM will provide a significant contribution to
achieving and maintaining air superiority, as well as providing
critical self-defence capability for a variety of current and
future UK air assets. It will be employed in the full spectrum
of air operations from air policing to peace support through to
high intensity conflict.
EQUIPMENT REPLACED
AND IN
-SERVICE DATE
7. ASRAAM will replace Sidewinder AIM-9L on Tornado F3,
Harrier GR9, and Sea Harrier FA2 in a programme due to start this
year and is the planned short-range air-to-air weapon for UK Eurofighters.
Sidewinder is currently due to remain in service until 2018 on
the Tornado GR4, but we are considering whether to integrate ASRAAM
on to all combat aircraft in order to rationalise air to air missile
stocks and realise savings by withdrawing Sidewinder from RAF
service earlier than anticipated. This assessment will be informed
by examination of the costs of integration, the capability enhancement
ASRAAM may provide, and the final missile numbers we require.
8. Details of the In-Service Date are given at Annex.[4]
However, the prime contractor, Matra BAe Dynamics (UK) Ltd (MBD)
has not yet achieved the missile performance level required by
the Department. The company has encountered a number of technical
problems, which have caused some delay to the programme and mean
that ISD will not be achieved. While MBD has continued their efforts
to improve the missile performance, the Department believes that
the performance currently offered is below that required by the
contract *** and is not prepared to take delivery of any missiles
until MBD can show that an acceptable standard can be met.
9. The Department is working closely with MBD to resolve
the problems and seeking to agree with MBD a credible and robust
programme that will achieve the required level of performance,
even if this means changing the current design and takes some
time to implement. Only when there is confidence in a robust incremental
route to full operational capability might the Department accept
limited numbers of missiles to an interim standard for ISD, in
line with Smart Acquisition principles. The aim is to ensure that
MBD devise the necessary solutions to identify a clear route to
full capability, which would then enable a new in-service date
to be set. This route map should be agreed with the company during
the summer. It is therefore not possible to define a new ISD at
this stage. Until ASRAAM is accepted into service, the Tornado
F3 will continue to be fitted with the Sidewinder AIM-9L missile,
which is effective against the threat in current Gulf operations.
The Harrier GR9, which is primarily used in the offensive support
role, and the Sea Harrier FA2 will also continue to carry Sidewinder.
The current delay will have no impact on Eurofighter's operational
capability.
ACQUISITION APPROACH
10. Under the provisions of the 1980 MoU, the US was
to develop an advanced medium range air-to-air missile, and the
UK and Germany, along with Norway and Canada, who had subsequently
joined the programme, were to develop the short-range system.
The European programme was managed by a joint project office,
with Bodenseewerk Geratetechnik GmbH and British Aerospace Dynamics
Ltd as the principal contractors. The programme encountered difficulties
over the missile configuration, the establishment of effective
collaborative arrangements in industry, and the identification
of an affordable product. Germany withdrew from the programme
in 1989 and the US, Norway, and Canada in 1990.
11. Once ASRAAM had been re-endorsed as a UK national
programme in 1990, an invitation to tender was issued on 1 May
1991. It called for a package deal, covering development, production,
and associated logistic support of the missile and its associated
training variants. We also stipulated the minimum use of Government
Furnished Facilities and Equipment, and the earliest possible
ISD.
12. A number of candidate weapons were considered. British
Aerospace Defence Ltd; Raytheon; a consortium of GEC, Marconi,
and Matra; Bodenseewerk Geratetechnik GmbH (BGT); and Loral Aeronutronic
all expressed an interest in the competition. In the event, Raytheon
and Loral did not respond to the ITT. The BAe bid of ASRAAM, the
GEC Marconi/Matra bid of MICA ASRAAM , and the BGT AIM9L IRIS
were considered as options in early 1992. Other weapons, including
a further BGT bid, the AIM 9LI (an improvement over the standard
AIM9L) and a number of US options either in service or in development
were also considered, but were not assessed as capable of meeting
the UK requirement.
13. The BAe bid met the Staff Requirement and offered
a number of advantages over the BGT and GEC Marconi/Matra bids.
BAe Defence Ltd (now Matra BAe Dynamics Ltd) was awarded a fixed
price contract on 31 March 1992.
EXPORT POTENTIAL
14. ASRAAM won its first export order in December 1998
when it was selected for the Royal Australian Air Force. There
is also interest from a number of other nations, including Greece,
Switzerland, Spain, and South Korea. This type of missile has
historically sold in the tens of thousands. Missiles with similar
capabilities are being built in the USA, Germany, Russia, Israel,
France, and South Africa.
INDUSTRIAL FACTORS
15. The decision on the main development and production
contracts took account of the employment implications for the
UK. Matra BAe Dynamics estimated that more than 80 per cent of
the work in total would be in the UK, securing some 7,000 jobs.
The GEC Marconi/Matra bid offered only 50 per cent of work in
the UK, although they estimated that this would rise to 70 per
cent if potential sales were achieved.
SMART ACQUISITION
16. Matra BAe Dynamics Ltd proposed in September 1998
a number of Smart Acquisition "gain sharing" initiatives.
These included the introduction of a more powerful processor into
the missile, enhancing the potential for future performance upgrades
and eliminating an obsolescence problem at no cost to the MoD,
and better alignment of missile production deliveries with candidate
aircraft platforms. A contract amendment was agreed in September
1999.
ACQUISITION PHASES
17. The acquisition phases are shown in the table below:
Phase | Date
| Activity |
Pre-feasibility | January 1981
| Endorsement of UK support to NATO operational objectives for ASRAAM and AMRAAM
|
| Feasibility | June 1982 |
Systems studies including IR detectors, transparent materials and sub-systems
|
| Project definition | December 1984
| Design of prototype missile and launcher sub-systems
|
| Project Definition Amendment (re-definition 1)
| December 1987 | Confirmation of image processing algorithms; manufacture of inert safety and arming units and design of strap down software
|
| Project Definition Amendment (re-definition 2)
| July 1988 | Study into detailed proposals for an integrated missile configuration and more efficient management structure
|
| Development and Production | March 1992
| Full development and production of ASRAAM starts
|
| |
|
18. Completion of design and development of the seeker
software remains the most critical of the programme risks and
has resulted in the programme failing to meet the currently approved
ISD. Much of this work is dependent on flying and firing trials,
conducted at the US Eglin range. Mathematical modelling has shown
that the system performance does not yet meet the requirement
and MBD are being required to establish a means of overcoming
the performance problems to reach acceptable standards.
MILESTONES AND
COSTS
19. Approvals for the development stage are listed above.
Details of expenditure to 31 March 2000 (now presented at outturn
prices) are provided in the table at Annex.[5]
(This mirrors the information provided to the Public Accounts
Committee in the Major Projects Report 2000.)
20. Delays to the programme reached a point where liquidated
damages became due; the majority of these have already been collected
in the form of consideration payments totalling some £19
million. The amended contract (see paragraph 16) makes provision
for further liquidated damages, a maximum of 6 per cent (approximately
£23 million) of the value of delivered items, against delivery
of the new processor missiles.
IN -SERVICE
SUPPORT
21. ASRAAM is an industry-supported missile, with the
bulk of its maintenance to be undertaken by the prime contractor.
Although Eurofighter aircraft delivered to Germany, Spain, and
Italy will be able to fire ASRAAM, these nations are not committed
to buying ASRAAM. At least initially, therefore, in-service support
costs will fall to the UK.
22. Most of the support equipment and handling procedures
for ASRAAM will be the same as for the current AIM-9L weapon.
However, as the design has been completed under the "all
up round" principle, there will be a substantial reduction
in routine servicing requirements at the front line and all major
servicing will be undertaken by industry. Storage is a potential
bottleneck, as ASRAAM stocks are built up without equivalent reductions
in AIM-9L stocks. A Weapon Loading and Storage Study is addressing
these issues. Since the operational and training missiles both
have classified software, unlike the current air-to-air weapons,
of which only the operational weapons are classified, modified
handling procedures will be needed.
FRONT LINE,
STORAGE AND
RESERVES NUMBERS
23. Current plans for operational missiles require ***
to be placed in storage and *** to be allocated to Main Operating
Bases. The remainder are telemetered rounds.
INTEROPERABILITY
24. ASRAAM has demonstrated its compatibility with earlier
AIM-9L launch equipment and interfaces. It is capable of being
carried and fired, with minimum modification, by all UK and other
allied air forces' aircraft that can carry and employ AIM-9L,
including Sea Harrier. The system is compatible with the new rail
launchers on Harrier GR9 and on Eurofighter. It is also designed
to be employed using multiple sensors, such as the infra-red search
and track systems and helmet-mounted sights planned for Eurofighter,
as well as radar.
DISPOSAL OF
EQUIPMENT REPLACED
25. Surplus Sidewinders may have potential for resale.
Missiles that cannot be sold will have no operational use and
will be scrapped.
IN -SERVICE
LIFE
26. ASRAAM is planned to be in service for 25 years.
DEVELOPMENT POTENTIAL
27. It is intended to establish a programme of through-life
development, and the potential to collaborate with Australia is
being actively pursued. Early discussions have been extremely
positive and encouraging. The programme is primarily to ensure
a useful service life of 25 years and could involve the acquisition
of emerging technology on an incremental basis.
April 2001
3
See p 54. Back
4
See p 61. Back
5
See p 61. Back
| 
