§ Mr. KeyTo ask the Secretary of State for Defence (1) if DERA Boscombe Down is being used as the public sector comparator or reference project in the private finance initiative procurement of future strategic tanker aircraft; [139163]
(2) how many wide-bodied jet aircraft will be accommodated at DERA Boscombe Down under the proposed future strategic tanker aircraft project; [139162]
(3) if he will list the members of the four industry consortia involved in the future strategic tanker aircraft project; and which of them propose to operate the project from (a) RAF Brize Norton and (b) DERA Boscombe Down. [139160]
§ Dr. MoonieThis 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 Robert Walmsley to Mr. Robert Key, dated 22 November 2000:
I am replying to your questions (139163, 139162 & 139160) to the Secretary of State for Defence about DERA Boscombe Down and the Future Strategic Tanker Aircraft (FSTA) project. This matter falls within my area of responsibility as Chief of Defence Procurement and Chief Executive of the Defence Procurement Agency.FSTA is planned to begin replacing the RAF's current fleet of VC10 and Tristar tanker/transport aircraft from around 2007. We are currently investigating the potential for achieving a service based solution to the requirement under the Private Finance Initiative. Our core requirement is for an air to air refuelling service with some elements of air transport capability. It is not for a replacement operating base.The current fleet is based at RAF Brize Norton in Oxfordshire. We are aware that DERA is promoting the Boscombe Down airfield as a potential operating base for FSTA and seeking to act as a commercial partner to the FSTA consortia. Our work on development of the Public Sector Comparator has concluded that RAF Brize Norton is likely to offer the most cost effective operating base for the FSTA service. However, I should stress that this is not a final decision: under a PFI procurement strategy we are prepared to consider an innovative bid that utilises an alternative base. It would need to demonstrate value for money whilst protecting operational capability.193WThe exact number of aircraft required to meet our output based requirements for the FSTA service will be for the consortia to propose. However, we currently understand that, whatever operating base is selected, between 20 and 25 wide-bodied civil aircraft will be needed. The following consortia submitted outline proposals in November 1999:Air Reach—Rolls Royce, and now including Peel Airports and ASIGBAE SystemsStrategic Support Management—comprising SERCO and Spectrum CapitalEurotanker—comprising Brown and Root, FRA and Thomson CSFIn submitting these proposals all of the consortia favoured RAF Brize Norton as the main operating base. However, the makeup of each consortium is still to be finalised and we have not yet launched the formal bidding process. It is, therefore, too early to say whether a Boscombe Down solution is likely to feature in the final bids. It will be for the individual consortia to decide how to frame their proposed solutions.