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Old 2nd June 2007 | 17:07
  #83 (permalink)  
Droopystop
 
Joined: Oct 2003
Posts: 510
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From: UK
You have to be very careful about using wage levels to compare costs. Ontop of wages you have to add pension provisions, medical benefits, accommodation allowances, meals, travel, etc etc. I have no idea what those costs might be for the RAF/RN personnel although it is not hard to imagine that the cost to the MOD of providing pensions is somewhat greater than that for the private sector. I think the real cost savings will be made in aircraft provision and maintainance, base services, efficiency and supply chain to name but a few. Another important point is that of "commercial risk". With harmonisation the risks of purchase (aircraft) and maintainance lies with the contractor, not the government. That would a great relief given the debacles the MOD have had with buying Chinooks, Typhoons, Merlins, Apaches, not to mention various warships. You could argue that it would be therefore worrying that a private contractor takes the risk, but one thing that will appear in the contract will be heafty damages if serviceability and availability are not maintained. The companies that are bidding for the SAR-H are all companies who over the years have got very good at making aircraft available and keeping them serviceable - its been said they cheat. They don't need to, they know it costs too much to have a machine down so have developed systems that means the aircraft stay properly servicable.
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