UK Warship Procurement Strategies ndash; Accident or Design.ppt

UK Warship Procurement Strategies – Accident or Design? Stuart Young Deputy Director – Centre for Defence Acquisition +44 (0) 1793 785051 syoung.cu@da.mod.uk Agenda Background – Development of Naval Shipbuilding in the UK since the 2nd World War The Defence Industrial Strategy Case Studies Offshore Patrol Vessel Type 45 Destroyer CVF – Future Aircraft Carrier Conclusions Background – UK Warship Building since WW2 Focus on commercial ships immediately after WW2 – sellers market. Early 50s – first new ships since WW2. New technologies led to increased cost and delays. Development of competitors from shipyards in Europe and Far East – problems in UK shipbuilding exposed. Admiralty returned to competitive tendering – by 1965 ten shipyards closed or merged/ Proposal to reduce to 3 specialist naval shipbuilders. 1973 Oil Crisis – Ship building collapsed. UK Government nationalised the industry. Background – UK Warship Building since WW2 1986 – Industry de-nationalised. Six yards designated as warship builders Competition and reduced number of orders led to further rationalisation – 3 yards, 2 companies 2005 - Defence Industrial Strategy. Establishment of BVT Surface Fleet joint venture 2009 - Signing of long agreement with MoD – cost savings (￡350M) in exchange for guaranteed minimum workload (￡235M/year) Buyout of VT by BAE Systems – now 3 yards, 1 company Defence Procurement Initiatives – 1998-2009 Defence Industrial Strategy - Aims Giving a strategic view of defence capability requirements going forward, by sector, and specifying which industrial capabilities the government wished to see retained in the UK for Defence reasons to meet these requirements. Providing details on the principles and processes that underpin procurement and industrial decisions. Investigating how the mismatch, or gap, between the MoD’s plans and the level required to sustain desired industrial capabilities onshore might be addressed. DIS – Maritime Sector – Key Points Need only to retain a