Originally Posted by
orca
Would it be possible to query whether other operators are actually happy with Typhoon sustainment costs?
How about costs and timescales of updates?
I only ask because I’ve heard them described as ‘horrendous’. Not by anyone who would know - just Air Cap and DE&S folk.
I agree the Tranche 1 is one of the most capable Control of the Air platforms around - easily within the top 20 or so.
Just counting: ah, maybe. I was wondering if the "top 20" might reach back as far as the Spitfire...
Whilst not being aware of the specifics of contracts between DE&S and parts suppliers, I wouldn't mind betting (apologies if this is wrong) that it's lots of little contracts rather than long term, large ones. Short term contracts are ferociously expensive because no business can afford to price one up on the assumption that it'll lead to another contract afterwards. What you're in effect buying is the company's commitment to hold off looking for long term, profitable work on other contracts for a year or so. Companies have to deal with lost opportunity costs, and that gets passed on.
If long term contracts are issued with terms setting out periodic reviews, then that gives businesses an incentive to put in a long term competitive price.