'Over-optimism' of UK's Type 45 destroyer procurement process slammed

The chairman of the UK's House of Commons Public Accounts Committee (PAC) has criticised the "over-optimism" and "inappropriate commercial arrangements" that led to "burgeoning costs and serious delays" in the Type 45 Daring-class destroyer programme, which is running two years late and GBP1.5 billion (USD2.45 million) over budget.

Commenting on release of the PAC's report of 22 June - which examines the procurement of Type 45 ships to replace the Royal Navy's (RN's) ageing fleet of Type 42 destroyers - Edward Leigh MP said the programme's problems hold "deeply worrying implications for the UK's air defence capability".

He added that it was "disgraceful" that not a single anti-air missile had been fired from the ship, and that it will not be fully operational until 2011. However, he said it was "encouraging" that the Ministry of Defence (MoD) "appears to be applying the lessons from the Type 45 project" to its procurement of the two Future Aircraft Carriers (CVFs).

Among the recommendations in its report, the PAC says the MoD should "factor in more realistic allowance for risk" for its more "technically complex projects" and also "spend more time at the start of projects to ensure its cost estimates are robust and realistic".

The report adds that key individuals in project management should be kept in place "during the critical stages of projects" and that the MoD should better manage their careers.