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U.K. Defense Procurement Under The Microscope

LONDON — Britain’s new chief of defense materiel, Bernard Gray, has embarked on a major review of program costs.

Gray, who took the role in January after heading an independent panel highly critical of defense procurement, is “doing an in-depth study” of the cost of the acquisition program the Defense Ministry has on the books, the ministry’s permanent undersecretary, Ursula Brennan, tells Parliament’s defense committee. The review should help the ministry enter future spending planning rounds with greater certainty, she says.

Brennan sidestepped questions about the size of the budget gap that the ministry is still looking to plug as it completes the current spending planning, noting only that PR11 is “in the final stages.” The ministry faces a gap between its budget and spending plans of around £4 billion ($6.4 billion) over the next four years.

Brennan also tells legislators that the cost to cancel contracts as a result of last year’s Strategic Defense and Security Review is still not established. Commercial negotiations with contractors are under way. However, Jon Thompson, the ministry’s director general of finance, notes the Nimrod MRA4 cancellation will add £3.53 billion to the write-off that the government will have to take.

Brennan says the decision to scrap Nimrod was made because it would generate £2 billion in savings over the next decade. And, she says, it was cheaper to dismantle the aircraft than to try to sell or store them.

But the decision to cancel the anti-submarine warfare (ASW) program remains controversial. In a new report on the decision, Lee Willett, head of maritime studies at the Royal United Services Institute, argues that “the Nimrod decision has raised some significant questions about the U.K.’s ASW capability.” Removing the Nimrod has a “disproportionate” effect on the layered ASW capabilities. A maritime patrol aircraft “is the glue that binds the layers together into a cohesive ASW cover,” he argues.

Photo: BAE Systems

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