APPENDIX B
DEFENCE INDUSTRIAL
STRATEGY, PROPOSALS
RELATING TO
SUBMARINE INDUSTRIAL
BASE
B2.62 Submarine design capability is at
risk if long gaps emerge between first-of-class design efforts.
The 11 year break between the design of Vanguard and Astute undoubtedly
led to a loss of capability and impacted on the Astute programme.
We now aspire to an eight year drumbeat to sustain the design
capability through incremental improvements, both to drive down
build costs and reduce subsequent support costs.
B2.63 The submarine design programme will
ensure options for a successor to the current Vanguard class deterrent
are kept open in advance of eventual decisions, likely to be necessary
in this Parliament. Cost-effectiveness will clearly be a key factor
in any consideration of potential options, both submarine based
and non-submarine based. For submarine-based options it will be
very important that MoD and industry are able to demonstrate an
ability to drive down and control the costs of nuclear submarine
programmes. Industry will be fully engaged in ensuring that design
efforts achieve the maximum impact in control of submarine build
and support costs, so sustaining the potential for this significant
future business and military capability.
In particular, we are developing a stream of
work known as the Maritime Industrial Strategy (MIS).
MIS WILL BE
AT THE
HEART OF
DEVELOPING A
SUSTAINABLE RELATIONSHIP
BETWEEN THE
MOD AND
INDUSTRY
B2.71 We have been working with industry
on the MIS for some time, looking at how we can best tackle these
difficult sustainability issues. This work is concentrating on
more clearly identifying the likely volume and timing of future
business, and defining in greater detail how we plan to maintain
the sovereign capabilities we require. This includes defining
the Core Work Load in discussion with industry.
B2.73 Under the MIS, we will immediately
start negotiations with the key companies that make up the submarine
supply chain to achieve a programme level partnering agreement
with a single industrial entity for the full life cycle of the
submarine flotilla, while addressing key affordability issues.
The objective is to achieve this agreement in time for the award
of the contract for the fourth and subsequent Astute class submarines
in early 2007. This will be matched by the implementation of a
unified submarine programme management organisation within the
MoD.
23 March 2006
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