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Old 29th Nov 2007, 13:02
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GOLF_BRAVO_ZULU
 
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Well here's a thought;
MoD delay to defence deal sheds light on why minister quit.

The Ministry of Defence is to delay a decision on a multi-billion pound contract for a new generation of armoured vehicles after Treasury pressure to drive down the price.

An announcement of the MoD's preferred supplier for the contract, Future Rapid Effect System (FRES), was to be made tomorrow and the move to extend the tender process sheds more light on reasons why defence procurement minister Lord Drayson resigned earlier this month.
FRES will be the MoD's largest contract, with the original plan to order about 3,000 vehicles worth £10bn over 10 years. The deal's total value, including maintenance and support, would be up to £60bn over the lifetime of the programme. But the Treasury wants the MoD to look again at the bids, and there is talk within the Ministry that the final contract may be for only 700 to 1,500 vehicles.

Within the defence industry, the long-delayed FRES had become a byword for the MoD's mishandling of big arms procurements.But in May Lord Drayson pledged in an interview with The Daily Telegraph that a decision on the winning bidder would be made by the end of November. "That is the first time that this department has said a decision will be made at a definite time," Lord Drayson promised. "The department has never done that before. I will keep the department to that. I learned as chief executive of a public company that it was important to do what you say."
He added: "Fres is a project that was going round in circles; without clarity and without drive. The department allowed that to happen... It should not have happened."

Lord Drayson resigned on November 7, saying he wanted to fulfil a dream of racing in the Le Mans championship. But there has been intense speculation of a bust-up with his boss, the Defence Secretary Des Browne, and also the Treasury.

Lord Drayson said in May that getting Fres signed would be a good test of the MoD's Defence Industrial Strategy (DIS), a plan drawn up to help government and industry work in partnership rather than competition.
An updated DIS was to be announced this month, but that has also been delayed.
http://www.telegraph.co.uk/money/mai...9/cnmod129.xml

Thread Drift Warning: AMBER

Interestingly, the additional armour needed by FRES to make it IED survivable has now made it overweight for transport by Herc. It would now need an A400M; http://www.timesonline.co.uk/tol/new...cle2963344.ece
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