Battlefield Artillery Engagement System (Hansard, 2 November 1987)

§ Mr. Cohen
asked the Secretary of State for Defence what was the original estimated cost, and what is the current estimated cost, of the battlefield artillery engagement system and associated software; and if he will make a statement.

§ Mr. Sainsbury
Current cost estimates are commercially sensitive. Estimated costs at the start of full development were some £175 million when revalued to average outturn prices.

§ Mr. Cohen
asked the Secretary of State for Defence how many years late on the original time scale the battlefield artillery engagement system is currently running; and if he will make a statement.

§ Mr. Sainsbury
Between the start of full development in 1980 and subsequent conversion to incentivised contractual arrangements in 1985, there was a slip of approximately two years. Subsequently there has been a slippage in the development programme of a number of weeks. The extent to which this may affect dates for introducing equipment into service will depend on progress from now on.

§ Mr. Cohen
asked the Secretary of State for Defence what is the likely reduction in provision to the Army of the 599W current proposals for the battlefield artillery engagement system as against the original plan; and if he will make a statement.

§ Mr. Sainsbury
The Army will receive sufficient equipments to meet essential operational requirements. Exact numbers of equipments to be deployed are classified.

§ Mr. Cohen
asked the Secretary of State for Defence what procedures his Department has adopted to monitor the efficiency, management and cost in the development of the battlefield artillery engagement system; what assessment he has made of the efficacy of these procedures; and if he will make a statement.

§ Mr. Sainsbury
Since 1985 the contract for development and the first phase of BATES production has been on a maximum price-target cost basis. This offers the contractor financial incentives and includes agreed levels of achievement against which progress is closely monitored. Regular progress reports are formally reviewed between the MOD and the contractor. These arrangements can be amended should this be considered appropriate.