Not only are MOD contracts bid low, the programmes they're delivering are costed low as well, usually by deliberate failure to account for personnel, training, C4I and support costs. An old trick called "entryism" which gets the programme over the affordability hurdle, onto the Equipment Plan and rushed onto contract, at which point it becomes almost uncancellable: a most convenient state of affairs for the Service guarding its share of the pie, and for the industry supplier which now has the MOD over a barrel (see Ajax). Such programmes eventually enter service due to Whitehall's attachment to the sunk cost fallacy and its fear of embarrassing cancellations, but only after several rounds of reprogramming in which other programmes get delayed to free up cash for the previously overlooked aspects and most of the original requirements get punted to a future 'spiral upgrade' plan which will be part-funded years later than needed, if ever. Throw in some over-optimistic export projections to pique ministerial interest and perhaps a co-development arrangement with one or two other countries (adding diplomatic embarrassment to the list of reasons not to cancel), and voila - business as usual.
Last edited by Easy Street; 22nd Apr 2023 at 18:21.