Type 45 Destroyer (Hansard, 11 January 2000)

§ Mr. Kilfoyle

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 Sir Robert Walmsley to Mr. Mike Hancock, dated 11 January 2000: I am replying to your questions to the Secretary of State for Defence about contract placement for the first and second Type 45 destroyers. This matter falls to me to answer within my area of responsibility as Chief of Defence Procurement and Chief Executive of the Defence Procurement Agency. As you are aware, the contract to complete Preparation for Demonstration (PFD) for the Type 45 was placed with Marconi Electronic Systems (MES, now BAe SYSTEMS) on 23 November 1999. BAe SYSTEMS have also been appointed as the Prime Contractor for the Type 45 Programme. It is currently planned to place the Demonstration and First of Class Manufacture (DFM) contract with the Prime Contractor towards the end of 2000, to meet an in-service date for the first-of-class ship of 2007. The detailed contractual arrangements for the build of the first and subsequent ships of the class remain under consideration with the Prime Contractor and I am therefore unable to be precise about the timing of the contract for the second T45 destroyer or to whom it would be awarded. However, value for money will be the prime factor in any such arrangement and in this regard we are keen to ensure that we retain our ability to conduct effective competition for follow-on Type 45 destroyers. To this end, both Marconi Marine (YSL) Ltd and Vosper Thornycroft will be involved in the PFD contract and, subject to satisfactory progress, also in the subsequent DFM contract with a view to allowing the efficient construction of Type 45s at both yards.