BAE Systems 15 yr deal to supply small arms ammunition

#1
At a cost of 2bn over the coming 15 years, BAE has been awarded the contract to supply small arms and medium calibre munitions to BRITFOR.

BAE Systems has signed a 15-year deal with the Ministry of Defence (MoD) to supply the UK armed forces with small arms and medium-calibre ammunition.

It also includes mortar bombs, tank, artillery and naval gun shells, but not weapons such as guided missiles.

The contract safeguards 1,700 jobs at factories in Crewe, Glascoed in South Wales and Birtley in County Durham.

The MoD said the deal, initially worth about £2bn, ensured frontline forces had a secure supply of ammunition.

The MoD said the contract could rise to a total of £3bn, depending on how much ammunition was ordered, and covers about 80% of the munitions used on operations and training.

... continues
BBC Webpage: BAE in £2bn MoD ammunition deal

Good news, or more problems in the making?
 
#2
What's the betting that in the very near future, the ammo becomes 400% more expensive to produce, and the cost must be passed to the customer?
 
#3
inbredyokel666 said:
What's the betting that in the very near future, the ammo becomes 400% more expensive to produce, and the cost must be passed to the customer?
Hopefully the contract has been written to rule that out. However, this is the MoD we are talking about.....

At least the stuff will be made in the UK with the wages going to British workers.
 
#5
VarSity said:
Is this designed to help with the global shortage of some ammunition?
Not really, but it should give some capacity to export.

Current operations mean that a huge amount more ball is now being used than (say) 10 years ago and BAE did not really have the capacity to produce it.

They weren't making any money on it either so things being what they are in UK defence procurement they have gone to the MoD and asked for a lot of money to build some new factories and acquire some new machinery, otherwise they won't bother making the stuff anymore.
 
#6
Got to be better than that Indian shite!

Stilts
 
#7
Face it- there is noone else in the UK capable of meeting the demand. Saying that, I do hope MoD has for once got a proper contract.
 
#8
Work for BAE! That part of the business was losing money hand over fist due to the MoD contract!

The new one is mutually beneficial, it allows the company to invest in the plant, which in turn reduces unit cost, the cost reduction means you guys get bullets and bombs cheaper, which either means carry more and get on auto, or at least knwo someone somewhere in the supply chain can get you what you need without resorting to translation! Although that Crewe accent is pretty sh@@e.

What's the betting there is at least one AT thinking mmmm cushy number for me there!
 
#9
STILTS said:
Got to be better than that Indian shite!

Stilts
Well said Stilts. Does the new contract also enable BAE to "ramp up" production to respond to any further areas of operations that make demands on us?

(hypothetical question, before the tin-foil hats come out) :D
 
#10
this should have done over 5 years ago! I have long felt that the lack of ammunition production capacity in this country was criminally negligent on the part of the government.
 
#11
ABrighter2006 said:
STILTS said:
Got to be better than that Indian shite!

Stilts
Well said Stilts. Does the new contract also enable BAE to "ramp up" production to respond to any further areas of operations that make demands on us?

(hypothetical question, before the tin-foil hats come out) :D
That is precisely what it does. Just in case, you know.
 

Biped

LE
Book Reviewer
#12
Should be a very healthy contract, even without ongoing ops in which many, many MILLIONS of rounds are being fired each year.
 
#13
its just a pity they can't put a plant on the outskirts of Brighton and give the hippy's something to get really upset about :twisted:
tested on the taliban not animals :twisted:
 
#14
As long as they keep producing those Green Sealable Ammo Bags.




Mind you that is probably the most expensive part of the contract
 

Trans-sane

LE
Book Reviewer
#16
ABrighter2006 said:
STILTS said:
Got to be better than that Indian shite!

Stilts
Well said Stilts. Does the new contract also enable BAE to "ramp up" production to respond to any further areas of operations that make demands on us?

(hypothetical question, before the tin-foil hats come out) :D
The contract may well contain clauses of this nature. But if it does require any kind of re-negociation, I suspect that the BAE rep will start doing that sucking through the teeth thing that cowboy mechanics and plumbers do when they think they can price gouge a customer.
 
#17
inbredyokel666 said:
What's the betting that in the very near future, the ammo becomes 400% more expensive to produce, and the cost must be passed to the customer?
Well if that's the case - lets shoot loads of 'Taliban' now while it's cheap.

(Then when the price rises - lets shoot even more to protect British jobs!)
 
#18
Just a quick question regarding ammunition. At my unit we are using Ammo from an obvious new manufacturer and I am just wondering who it is.

There is a ‘T’ stamped on the bottom of the round as the manufacturer, it is also on the H83 Containers.

Like I said, just curious as I have never seen it before.

Edited to add: It is 5.56 ammo
 
#19
MoNkEy271 said:
There is a ‘T’ stamped on the bottom of the round as the manufacturer, it is also on the H83 Containers.
Didnt know things had gotten so desperate that they were using ammuntion sourced from the Taliban :twisted:
 
#20
ftreqptmyass said:
That part of the business was losing money hand over fist due to the MoD contract!
Sounds like a contract MoD got right for once. Still, BAE can claw it back somewhere else provided the senior managers can stay out of jail...
 

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