TRACER (Hansard, 28 February 2000)

§ Dr. Moonie

This is a matter for the Chief Executive of the Defence Procurement Agency. I have asked the Chief Executive to write to the hon. Member.

Letter from John Howe to Mr. Quentin Davies, dated 28 February 2000: I am replying to your questions to the Secretary of State for Defence on the TRACER programme. These matters fall within my area of responsibility as Chief of Defence Procurement and Chief Executive of the Defence Procurement Agency. On the question of contractual provisions in the event of US withdrawal from the programme, the collaborative arrangement with the United States on the TRACER programme is governed by a Memorandum of Understanding (MoU). Whilst the framework of the MoU allows for the programme to progress through to a Production Phase, neither the UK nor US Government has made any formal commitment beyond the current Project Definition phase. Accordingly, compensation would not be payable should either nation decide not to proceed beyond the current phase. However, as is normal for collaborative programmes, provisions have been made in the MoU which would allow the remaining nation to continue to the end of the current phase in the event that either partner withdraws prior to completion of it. Specifically the MoU requires that 'The terminating Participant will pay all Contract modification or termination costs that would not otherwise have been incurred but for the decision to terminate'. On the question of whether the United Kingdom will continue with the development of the TRACER system if the United States ceases to participate, I should confirm that the Project Definition phase, a phase to which the United States and the United Kingdom remain committed, is not due to finish until July 2002. At the end of the Project Definition phase, the programme will be formally reviewed, taking account of all relevant factors, before a decision on how the TRACER requirement might be pursued is made. On the question of programme costs, UK expenditure to date on the TRACER programme is around £39M. We currently estimate the overall cost to the UK of the Project Definition phase to be £130M.