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Non-Subscriber Extract

Cost concerns force UK to consider smaller carrier

21 July 2003
Cost concerns force UK to consider smaller carrier

By Richard Scott, JDW Naval Editor, London

Mounting concerns over the affordability of the 65,000-ton 'adaptable' carrier design selected as the basis of the UK's Future Aircraft Carrier (CVF) programme have forced the UK Defence Procurement Agency (DPA) and the BAE Systems/Thales industry alliance to urgently explore a smaller and cheaper fallback design concept.

Due to enter service in 2012 and 2015, the two new carriers will operate the short take-off and vertical landing variant of the Lockheed Martin F-35 Joint Strike Fighter, selected in September 2002 as the UK's Future Joint Combat Aircraft. However, the ship design is to be sufficiently flexible to adapt to new aircraft, unmanned air vehicles and/or unmanned combat air vehicles entering service during the course of its life.

Following a politically charged competition, BAE Systems was selected as prime contractor designate in January with its rival Thales brought on board to provide the whole-ship design as key supplier. The two companies have subsequently brought their CVF teams together in a single structure known as the Future Carrier Alliance.

Both BAE Systems and Thales completed the submission of their competing design proposals to the DPA last November together with their respective cost models. Neither was obliged to confirm a final price.

However, it is understood that incoming Chief of Defence Procurement (CDP) Sir Peter Spencer ordered an urgent review of the CVF project last month after industry costed the programme at about £3.8 billion ($6.2 billion) - a full £1 billion above the available budget. The London Financial Times newspaper revealed last week that studies of a smaller carrier had been instigated due to this significant cost disparity.

The nature of this disclosure, which suggested that BAE Systems had marked up its costing since receiving the prime contractorship, has angered industry officials. They insist they have consistently advised the DPA that two vessels meeting all the criteria laid out in the user requirements document could not be built for the £2.8 billion earmarked for the demonstration and manufacture phase.

As a result of the CDP's concerns, the alliance was last month tasked by the DPA to undertake a 'quick-look' study into a smaller design which, while retaining provision for catapults and arrestor gear at a later stage, would have a reduced air group. JDW understands the sketch design produced would displace 45,000-50,000 tonnes with space for around 35 aircraft - as opposed to 48 for the existing 65,000-ton design.

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CVF carrier design
Cost constraints may force the UK to accept a smaller carrier than the 65,000-ton CVF design pictured here. (Source: Thales)

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