Originally Posted by
PDR1
Pontius - you overlook the details that
1. The MoD owns the design (because it funded it) and so gets a license fee on every foreign sale.
2. The RN Type 26s have yet to be built, so the unit price when they do will receive the volume cost benefits of the RAN order.
3. UK contracts for large MoD programmes are "open book", so the MoD is able to see and verify that these cost reductions are applied - it's not just blind faith.
PDR
I guess you spread the design cost of 20 units rather than say 10 - should be an overall saving to the taxpayer......... plus the fact you have on-going production lessens the push to get all your costs back ASAP - you have more of a vested interest in keeping things ticking over