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Procurement Projects

Volume 456: debated on Wednesday 7 February 2007

To ask the Secretary of State for Defence what the 20 largest procurement projects initiated by his Department since May 1997 have been; what the (a) original budget, (b) cost to date and (c) consultancy fees have been; and what the final cost was of each project which has been completed. (106580)

The 20 largest equipment procurement projects that have passed their main investment decision point (Main Gate) since May 1997 are as follows:

£ million

Project

Main Gate approval1

Total cost to 31 March 2006

A400M—Heavy Transport Aircraft

2,700

200

Advanced Jet Trainer

500

70

Airborne Stand Off Radar (ASTOR) System

1,100

870

Beyond Visual Range Air to Air Missile

1,400

280

Bowman—Data and Voice Communication

2,000

1,760

C17—Strategic Airlift

790

500

C Vehicle—Private Finance Initiative

710

20

Future Joint Combat Aircraft

2,200

560

Future Lynx2

2,000

0

Combined Aerial Target Service2

430

0

Merlin Capability Sustainment Programme

860

40

Next Generation Light Anti-Armour Weapon

420

100

Seawolf Missile System—Block 2

550

210

Skynet 5—Satellite Communications

2,900

150

Sonar 2087

390

180

Successor Identification Friend or Foe

390

230

Support Vehicles

1,600

20

T45 Destroyer

5,500

2,800

Trojan and Titan Engineer Vehicles

400

260

Watchkeeper

900

40

1 Costs have been rounded to nearest £10 million if total expenditure is under £1 billion and to the nearest £100 million if total expenditure is over £1 billion.

2 Future Lynx and Combined Aerial Target Service were approved in June and December 2006 respectively. No costs were incurred for demonstration and manufacture as at 31 March 2006.

The costs shown are those demonstration and manufacture costs approved (the ‘not to exceed’ cost) at Main Gate and those incurred to 31 March 2006. None of the projects have been completed and therefore final costs have not been provided.

Expenditure on consultancy fees related to these projects since 1997 is not held centrally and could be provided only at disproportionate cost. However, I can advise that summaries of MOD expenditure on external assistance, of which consultancy is a part, are available in the Library of the House for the years 1995-96 to 2005-06.