Jacko
We've done the costing argument before. NAO says this, Jacko says the other, DoD says something else, I say that. As you rightly identify, there are different components in each. My actual point was more along the lines of impact on the EP - which appears to be your bugbear.
On that basis, according to NAO which uses the EP lines (no matter how much you might like to quibble) 20 Tiffy's a year at NAO UPC is £1.4Bn pa for what, 6 years for the T1 and T2 buy? Compare that to £4bn over 8 years (contract cost, inclduing all the bits like dredging Pompey and Rosyths dock and crane). Even my elementary maths has that at £500M pa or one third TIffy (which we need to buy).
Now add T3 for which there is no agreed UPC yet and I agree is cast iron locked in and who's distorting what? Incidentally, have you ever wondered whether BVT negotiated a similar cancellation penalty to T3 during the merger? Restructure your entire business and leave it dependent on an easily cancellable contract?
Wait - I hear you cry, what about Dave?
Very true. But don't the RAF want Dave too for FOAS or whaever it's called this week? If you want it you've got to pay for it - it appears to be the £500M pa for ships you object to.
It's only simulated money anyway, lets be honest.