Defence Equipment: Cost Effectiveness:Written question - 188743

(North Durham)
Asked on: 06 November 2018
Ministry of Defence
Defence Equipment: Cost Effectiveness
To ask the Secretary of State for Defence, how the (a) Poseidon maritime patrol aircraft programme (b) Apache capability sustainment programme and (c) Type 26 frigate programme have realised those efficiencies referred to on page 8 of the Defence Equipment Plan 2018.
Answered by: Stuart Andrew
Answered on: 14 November 2018

As stated in the Defence Equipment Plan 2018, the Ministry of Defence has secured sizeable cost savings on the Poseidon maritime patrol aircraft (£207 million), Apache Capability Sustainment Programme (£132 million) and Type 26 frigates (£104 million). These are the result of efficiencies identified and realised by Defence Equipment and Support through transformation initiatives. In particular, on the Poseidon Maritime Patrol Aircraft, negotiations with the US Navy and Boeing achieved savings on the aircraft and the initial provision of capital spares. On Apache, economies of scales were achieved through negotiating combined requirements with the US Army and Boeing. And for Type 26, savings were achieved through using improved project control and commercial skills to adopt a much stronger negotiating strategy.

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